Rouge steel plate are up 60% in last 6 months. Temporary rise or the new normal?
Thanks!
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Thread: Rogue prices way up
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09-06-2021, 01:21 PM #1
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09-06-2021, 07:07 PM #2
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09-07-2021, 06:51 AM #3
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09-07-2021, 07:59 AM #4
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09-07-2021, 08:50 AM #5
There's not going to be any drop off in price no matter if there's less demand, production will just drop, but prices will remain high. That's how these corporations are run, it's cheaper to just lay off staff and not sell more units than it is to lower prices, sell more units, and pay more employees.
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09-07-2021, 12:19 PM #6
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09-07-2021, 12:48 PM #7
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09-08-2021, 08:34 AM #8
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09-08-2021, 09:11 AM #9
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09-08-2021, 10:51 AM #10
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09-08-2021, 11:44 AM #11
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09-09-2021, 06:39 AM #12
This to shall pass.
There is no “new normal” this is simply classic supply and demand, or as I call it “supply and stupidity”.
Price and value are not the same thing. If I want something I buy it if it’s priced properly for its value. If it’s not, I don’t buy it, or I buy used, or from a competitor.
A fool and his money are soon parted is very true and it’s quite easy to take advantage of the fools.
Now, I’m not being arrogant, and openly admit I’ve been that fool on occasion, but for gym equipment, I don’t need anything, I simply want.
Needs make you the fool, and wants allow you to cash in on the fool
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09-09-2021, 06:48 AM #13
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09-09-2021, 08:27 AM #14
- Join Date: Jan 2011
- Location: Boulder, Colorado, United States
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There are basically two main drivers of price increases:
1) The supply chain is totally fubar which has resulted in shipping container costs rising 5x or more. A typical container from China to West coast might have been $2k or so for a 40'. Now it's $10k or more. This is not expected to be resolved until well into 2022.
2) Steel prices globally have increased 100% or more.
If any of the gym equipment suppliers just wanted to price gouge, they would have done it early on in 2020 when everything was selling out in minutes. You can't do that now when most companies are well-stocked. The prices will come back down once those two factors have changed, because competition forces it. No company can sell iron plates at $2/lb if the guy down the street is at $1/lb. That's just how it works, and there's always incentive for a company to price lower than the other guys and sweep up the sales.
The fact is, prices are higher because costs are higher. None of the major players are price gouging.www.repfitness.com - Gym equipment manufacturer.
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09-09-2021, 09:18 AM #15
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09-09-2021, 09:52 AM #16
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09-09-2021, 01:11 PM #17
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09-09-2021, 01:53 PM #18
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09-09-2021, 02:26 PM #19
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For what it's worth, historically the above is generally true in that once price increases are established, they are not given back.
THAT SAID, a case can be made that this time is indeed different and may prove to be so. BTW it's been different before too but not common especially during the last 30 years. Keep in mind that while I do believe more inflation is coming I will also say that some is absolutely transitory (see lumber which spiked massively and has dropped off). Where commodities are concerned (steel in this case) the saying goes that the cure for high commodity prices is high commodity prices. People will get supply back on but currently it's constrained so if you want steel intensive stuff right now, you will pay right now prices.
Let's say someone is forced to increase price of X plates 100% just to be profitable at a reasonable margin today and not lose money due to sustained high commodity cost. Then the commodity price drops back to a reasonable level. If they don't cut their price back some and give up the now exorbitant margins, someone else steps in and does it, taking all their business and making a mint themselves. The world tends to balance itself. Remember 2008 and $120 oil? That made no sense with the world dying in crisis but everyone made some kind of fundamental case to rationalize it. Guess what, bottom fell out and it traded in the $20 range a few months later because all the suppliers hit the bid so to speak and sold forward a ton (mainly Mexico) dispelling the illusion for everyone. In 2020 March/April oil was actually negative in that someone would pay you to take it as there are costs in shutting wells - that didn't last either as a lot of people rented storage and empty tankers to hold it through the period and sell later.
Anyway supply/demand will find a natural balance in time. Lots of demand and impaired supply right now with a dramatic and potentially unsustainable price increase in the market. Will it last...meh...we will see but usually doesn't when it's this severe. It's not like we are using more steel and we the people, raws, and infrastructure to deliver don't exist anymore or we are using dramatically more than they can supply. Just constraints in the chain of supply while demand is not as constrained at the moment.
Hope that helps. Not a future prediction but some food for thought.▪█─────█▪ Rogue Barbell Crew #27 ▪█─────█▪
▪█─────█▪ Mech6 Crew #26 ▪█─────█▪
▪█─────█▪ Equipment Crew #83 ▪█─────█▪
Haven't been able to "rep" many of you for a year or more...not for lack of trying.
Home Gym: https://forum.bodybuilding.com/showthread.php?t=175136471&p=1615740991&viewfull=1#post1615740991
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09-09-2021, 02:37 PM #20
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There were always companies that sold plates that cost more money that basic plates. Think of how much it used to cost to get a set of Ivanko plates. Duke saying no company can sell iron plates at $2/lb if the guy down the street is at $1/lb is silly because plenty of companies have done just that before COVID and after COVID. This isn't just about premium style plates like revolvers, there are plenty of basic style plates that have always cost more than the cheapest option and they continue to be sold.
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09-09-2021, 02:46 PM #21
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09-09-2021, 03:36 PM #22
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09-09-2021, 07:44 PM #23
That was a very brief drop that resulted from very specific, unique conditions that caused a temporary change in pricing. We may see gas drop to $0.99/gal again in our lifetimes, but we're never going to see $0.99/gal as the everyday price ever again. Similarly, we saw a brief spike in equipment pricing that resulted in outrageous, unsustainable pricing driven almost entirely by an unusually low supply and an unusually high demand. Demand has since dropped off a cliff, supply has started to level out, but other market conditions have continued to drive prices higher. If we assume that these conditions will persist well into 2022 (as all indications and financial analysts suggest) and consumers continue to buy (as they have thus far), the equilibrium price will inevitably rise. Sure, we will still occasionally see some great deals reminiscent of former pricing, but I think the floor will remain elevated well above what it was pre-COVID.
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09-11-2021, 08:01 AM #24
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What I'm saying is that if Company A has basic iron plates at $2/lb and Company B has basic iron at $1/lb, Company A cannot continue to sell at $2/lb for long unless there is no awareness of Company B. Eventually Company A is forced to lower their price or sell so few that it doesn't matter what they list at.
www.repfitness.com - Gym equipment manufacturer.
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09-11-2021, 09:00 AM #25
- Join Date: Apr 2007
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I don't disagree but look at lumber. Large short-term supply/demand imbalance spikes do indeed correct and pricing change is forced on market participants. That said, some of it will stay as the longer term we should see some sustained inflation from this especially on the wage side which will drive all others.
▪█─────█▪ Rogue Barbell Crew #27 ▪█─────█▪
▪█─────█▪ Mech6 Crew #26 ▪█─────█▪
▪█─────█▪ Equipment Crew #83 ▪█─────█▪
Haven't been able to "rep" many of you for a year or more...not for lack of trying.
Home Gym: https://forum.bodybuilding.com/showthread.php?t=175136471&p=1615740991&viewfull=1#post1615740991
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09-11-2021, 09:13 AM #26
The exception to this is, of course, if company A isn't interested in competing with company B. Rogue, Ivanko, Eleiko and others can oftentimes price things higher either because people will pay more for their brand (even though the product is no better than a competitor) or they'd rather sell other products with better margins. The iron plates can sit while they move bumpers.
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09-13-2021, 05:46 AM #27
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09-14-2021, 01:07 PM #28
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09-14-2021, 01:47 PM #29
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