A beef with some retail vendors.......

starr256

H-M Supporter - Gold Member
H-M Supporter Gold Member
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I started working on the Ageless 9 cylinder radial engine about 3 years ago. The value timing mechanism uses an internal gear (24 DP, 48 teeth, 14.5' , brass) that is made by Boston Gear. At that time it was available for around $110 from a number of retail vendors. I was just starting and was unwilling to commit to the purchase of a specialized gear for a project that I might bail on. Well I didn't bail and could use the gear. Now it is running at >$200 from those vendors. That is double the price. I know that inflation has been exorbitant these last three years, but this is nuts. Three years of 8% inflation would mean $128 for the gear. This is for a item that is probably in inventory bought with pre-high-inflation dollars. I have a tough time believing that this is a commodity item that needs to be replenished frequently. Otherwise, other gear makers would jump in, especially from China. I can understand a rise in price due to inflation when a new production run is needed. So vendors, explain your pricing policy for inventoried items. You bought the item at a pre-high-inflation price and now offer it at a ridiculously higher price because you will need to replace it at a higher cost to you? Or is this just a variation of buy low, sell high and the high price is what the market will bear? Or is this a case of a shrinking inventory because Boston Gear is not producing them anymore? This logic perpetuates infaltion. To be fair, this is a widely held practice. A ethical flaw in my opinion. Just a gouse from an old grumpy dude.
 
I started working on the Ageless 9 cylinder radial engine about 3 years ago. The value timing mechanism uses an internal gear (24 DP, 48 teeth, 14.5' , brass) that is made by Boston Gear. At that time it was available for around $110 from a number of retail vendors. I was just starting and was unwilling to commit to the purchase of a specialized gear for a project that I might bail on. Well I didn't bail and could use the gear. Now it is running at >$200 from those vendors. That is double the price. I know that inflation has been exorbitant these last three years, but this is nuts. Three years of 8% inflation would mean $128 for the gear. This is for a item that is probably in inventory bought with pre-high-inflation dollars. I have a tough time believing that this is a commodity item that needs to be replenished frequently. Otherwise, other gear makers would jump in, especially from China. I can understand a rise in price due to inflation when a new production run is needed. So vendors, explain your pricing policy for inventoried items. You bought the item at a pre-high-inflation price and now offer it at a ridiculously higher price because you will need to replace it at a higher cost to you? Or is this just a variation of buy low, sell high and the high price is what the market will bear? Or is this a case of a shrinking inventory because Boston Gear is not producing them anymore? This logic perpetuates infaltion. To be fair, this is a widely held practice. A ethical flaw in my opinion. Just a gouse from an old grumpy dude.
$200 is a deal for a 14 1/2 foot brass gear.............
 
LOL
Seriously though they can charge whatever they want if it's a part that doesn't sell a lot of- and may soon be discontinued anyhow
just for that reason
 
I call it profiteering for the sake of it.


By all means, add the inflation rate to the price, but there is no need to gouge the customer base just to be greedy.
 
If inventory is not turning multiple times per year, it is usually eliminated from stock, so it is highly unlikely those gears were made prior to inflation increases the past few years and sitting there all that time. The higher price is a strong indication the gears are selling and the higher price reflects the higher costs from the manufacturer.

When I was at FAG Bearings, common size bearings that sold a lot each year were kept in the warehouse, but most bearings were not made until ordered by the distributors or OEMs first. Placing items in stock for future orders had to have a solid history of orders. If something like the gear you are looking at wasn’t getting ordered and was sitting on the shelf for a few years, it would no longer get made until enough orders were placed for a production run. I would expect Boston Gear to be the same. Distributors operate the same way, they don’t want to be sitting on inventory that is not moving.
 
Some of you failed economics. Selling a widget based on what you paid for it is a good way to go broke. For a retailer to remain viable their price must reflect their replacement cost. If they sell it to you for $10, but it costs them $12 to get the next one they are losing their operating capitol.

Now, about that (BS) inflation number. If you don't do your grocery shopping, go ask the person who does if they think inflation in the last 3 years is 8%... Lots of things have doubled or more.

I don't think it's any more predatory than the original pricing, just keeping up with the times.

GsT
 
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