Get ready for component price hikes - screws, pole shoes, etc.

[WolfeMacleod]

Already been informed that because of new tariffs on steel, there will be a price hike on polepiece screws, slugs, and keeper bars from my suppliers. Since they will pay more, we will pay more.

Wonder how the 10% aluminum tariff will affect the cost of Alnico.

[David King]

Wolf this might make a difference for skyscrapers and bridges but it won't have any effect on our small parts because the actual cost of the steel in a slug is minuscule compared to the value added and a 25% hike will only amount to a tiny fraction of a penny. There is so much volatility in the price of steel anyway that you simply won't notice it at the retail end. See this graph: https://fred.stlouisfed.org/series/WPU101707
Now if this starts a trade war then we could see some serious impacts on our standard of living.
If your suppliers are warning you of price hikes it's because they think this is a perfect excuse to raise prices across the board but their costs of production increases will still be negligible. I.E. shame on them.

[Tom Phillips]

Just suppliers using any excuse they can to justify price increases.

[WolfeMacleod]

Wolf this might make a difference for skyscrapers and bridges but it won't have any effect on our small parts because the actual cost of the steel in a slug is minuscule compared to the value added and a 25% hike will only amount to a tiny fraction of a penny. There is so much volatility in the price of steel anyway that you simply won't notice it at the retail end. See this graph: https://fred.stlouisfed.org/series/WPU101707
Now if this starts a trade war then we could see some serious impacts on our standard of living.
If your suppliers are warning you of price hikes it's because they think this is a perfect excuse to raise prices across the board but their costs of production increases will still be negligible. I.E. shame on them.

When you buy 10 or 20,000 at a time, it'll add up quickly. I've now spoken to four different suppliers of parts. When their costs rise, ours will too. Hopefully, not as much as what I expect.