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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (3576)4/5/2004 12:11:17 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
HUH?
I see nothing BUT Trickle.
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"We're trying to leave no stone unturned in ways to offset those cost increases," said Bill Beer, president of Maytag's major appliance division.

Bruce Ballard, merchandising vice president for appliances at Lowe's Cos. (NYSE:LOW - News), the second-biggest U.S. appliance seller, cited mixed messages from manufacturers, saying some were seeking price increases while others are not.

"Until we see some consistency and sustained pressure out there on the commodity steel, it's likely that we'll continue to position our product just as we are today, not having (the consumer) pay a price for the pressure that's out there," Ballard said.

Ballard does not think increased commodity costs are likely to hurt overall appliance industry sales. "We see some abating of this (cost) pressure coming in the middle and latter part of this year," he said.

Stephanie Kivett Ohnegian, director of home appliances at the U.S. arm of Korea's Samsung Electronics (005930.K), said her company has a no-price increase policy but was offsetting higher commodity costs in other ways.

[A NO PRICE INCREASE POLICY! - mish]

For instance, Samsung discontinued some of its small microwaves because making money on them is hard with materials costs rising.</B

[Cant make money on it - product discontinued NOT REPRICED! - mish]
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Russ that article proves how hard it is to pass cost increases on. Exactly what do you see to prove otherwise. IF prices are hiked are they the full amt of the commodity hike? I surely doubt it. Trickle is it.

Mish