free trade

[38racing]

There's lots of talk about Nafta right now from your new President. On the subject of trade I need some MTD parts and a briggs seal. I did up the order from a USA supplier in Michigan. My cost to the door is $114 CDN. I did the same order from a Canadian supplier and to my door it's $154. That's 35% more to buy in my own country. Can't say I've come across a Mexican supplier.

[KE4AVB]

I am too worried about what the head nut case (mpo) is doing. All the gains we have made is going out the door it seems. It just something we have to deal with now as the voters had their say; unless, Congress steps in and says different. The worst of it he is already planning on staying in there for 8 yrs. I hope we all survive this and I am afraid worst hasn't happen yet. The American voters seems to want this but after it start hitting their wallets it maybe different.

I never seen anything like this out someone other than my brother which thought everybody had bow down and kiss his rump or there was heck to pay.

It does seems like he doesn't seem to know how interconnected our suppliers have become across the globe. That Briggs seal is probably made in Mexico or India. And the MTD part probably made in China. As for the cost difference it probably that your Canadian supplier is having order from an US supplier then adding a makeup to cover operating costs and tariffs; can't blame them on having to make a profit to stay in business. And worst is that the exchange rate is changing daily sometime by a lot.

It like when I was having to buy through Jacks paying full suggested retail (SRP) on Briggs parts and having to make-up 20-30% just to cover the shipping costs. Now I get a good discount on the Briggs parts as dealer from my Sunbelt supplier so now I can sell at the SRP and actually make a small profit.

I also notice a jump in some my part prices already. One Husqvarna part went up 50% in less than two weeks. I don't know if it is related to what is going but I was working on a stock order with price quotes from the first week of January and when I ordered this week I had to rework the PO to reflect all the price increases (that in less than a month). If wasn't for me being to figure out where to get things like bearings and other items I would be in trouble. One bearing that I just ordered 20 of costs $12-$14 each from JD was only $1.80 each from the bearing supplier and I make a nice profit on them when I sell them at less than half what it costs me from JD.

Bearing details:
Bearing 6203Z/C3 17mm x 40mm x 12mm Metal Shields
GX21510 $13.85 OEM
B1AC61 $1.76 Aftermarket
Rotary 6513 $4.57

And they are all the same bearing. What a spread of prices just between three different suppliers. Just need to order at least $100-150 to get free shipping which isn't hard to do on restock orders as I prepare for Spring start-up season.

[bobodu]

On the bright side...Toyota has just announced a BIG expansion of its plant right here...adding 400 NEW jobs and a 600 million dollar investment !!! Some nut case...Maybe I can recoup some of the $12,000 a year cost that I am paying for the promised "
$2500 savings":usa:

[38racing]

a while back my cdn $ would get me 90 cents US. now it gets me only 72 cents and it's still cheaper to import than buy locally.

[KE4AVB]

Bob, I taking the wait and see attitude. It sorta like the minimum wage. It goes up to help those that are on it to only hit them harder later as business increase prices to recoup the additional expenses.

I know that several of the big auto manufactures have built new plants in my area well ahead of this year. Both Nissan and Toyota have engine plants here. Still trying to figure out how they are taking sheet metal and making crankshafts from it. Some kinda of lamination process I am thinking. Lots of left over metal hills at the recycling center from the process.

[RoyM]

That Toyota plant is not a product of the election, it was months and years in the planning stage and would have been built if the Democrats had won. Trump's policies are not going to make things any better for the American worker in the long run, they will be making products no one can afford to buy. He is threatening Ford for moving production of an uneconomical entry level car to Mexico. He fails to realize the plant is not shutting down, they are shifting to more profitable trucks and suv's. If heavy penalties price the car out of the American market it will get sold elsewhere and U.S. consumers will have one less choice.
The U.S. is currently enjoying a trade surplus with Canada which won't last if the administration gets too heavy handed. We will simply go elsewhere and become more self sufficient, in spite of what Trump seems to think he is not the only game in town.

[bobodu]

Yeah...that's why all the plants were announced back then.....LOL
Take heart Canuukistanians.....soon you will be able to stay home for healthcare because our will suck just as bad. AND...I'll be able to park closer to the door at the hospital than I do now. But I do love to see you guys preach to me about cost while you complain about costs.

[okie]

I would love to get in this conversation but I promised not to talk about politics


Okie From a red state.

[KE4AVB]

Well it is kinda a mix of both but it is more about what is going to happen to all of us as this kicks in as it affects all us as far as being able to get parts reasonable. I am trying my best not to get sucked into to mess of politics myself locally. I rather just go on with my daily business and deal whatever comes at that time. Hopefully I have build up enough skills and backdoor access to get what I need to make the repairs at a reasonable cost to the customer.

As a term I have heard before goes "There is more than one way to skin a cat." Probably why I am still able to rebuild spindles cheaper than buying those pricey whole ones. A new customer just paid over $100 for a spindle before he came to me to put it on for him. I looked up what it would have cost from me with making a profit and I could saved $20 of the whole or rebuilt it for less half the cost of the one he brought and that included replacing the bent spindle shaft. That would the only 2nd MTD spindle that ever seen bent.

Eight more years if I make it and I might be to afford one of the rockers for rocking chair when I get on the rocking chair fund if it is still there.

Well I better go back to work I got a Snappers in yesterday have tranny problems and I know those seals are from Mexico or China. Better order them before I can't get them from there. But I can probably still can get them from Brazil or Australia I hope though shipping will be a lot higher. Either way I will be passing along any price increases and may even start adding shipping to the invoices.

I got feeling I am going to be heard a lot whinning later today from those trannies. Wouldn't know until I get to check them out.

But first I got go UPS and send back a spring that was too short. Boy talking about dumb customer service. I had ordered based on what I was told on how to measure the spring. When it arrived it was 4" too short. The first return email said if I had the two springs unbalanced that would be the problem even I wrote that the spring was too short and I was needing a longer spring assembly. One problem there as there was only one torsion spring; for some reason I am thinking there is no way I can have two springs unbalance. When after two emails I got back that I could return the 35 inch spring and to order a 31 inch spring that when I gave up on them. Later they sent me third email with a link to youtube video on how to measure the spring even after I had already sent them pictures of the springs and a tape measure across them showing the length. On top of that the youtube video doesn't even have a valid address.

I going to just cut the 6 turns that broken off the hub, rethread hub, and maybe it will work. It still going to be 37 inches which is still better than the 35 inch spring they had sent. Boy I wish they would hire people that can use their brains. They probably send another email complaining about giving them a very poor rating.

[KE4AVB]

This just a financial example what if we were paying more for our goods from Mexico because of the additional tariff tax.

If things goes as someone plans Mexico will raise their prices by at least 25% to cover the 20% tariff fee. Wonder how I came up 25% extra.

Here it is:

First Mexico would do a 20% gross profit markup. Let's say an item was $100 they would divide by .80 this gives the 20% gross markup of $25 then Mexico pays that pay that as the 20% tariff tax which would ($125 x .20 = $25) bring their price back to what was beforehand; no loss to them. Then the $125 which would be our cost then that gets markup to our new retail price assuming we get a 20% off retail or are doing a gross markup of this percentage. Now that parts that would have been $125 now would sale for $156.25. That would be hit of an additional $31.25 plus the extra tax that new price adds and shipping if that is being charged too. And this don't even include multiple middle men and their price increases. A real snowball effect for some of us that are not dealers.

Personally there is no way I can to loss money so I would pass this all along of course. Either way the consumer is on the hook for that 20% tariff. And if you are a Canadian customer that buys from the US you would also be on hook for this tariff on any goods that of the Mexican origin. Great isn't it. One heck of a way to raise our gross income.

Personally I hope it don't go thru but deal with it, if does the customers will just need to pay more than they did before and lump it if they want their equipment repaired.