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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: orkrious who wrote (169162)12/4/2008 8:24:13 PM
From: THRead Replies (1) | Respond to of 306849
 
ork,

<sticky prices> will be around until sales are dramatically impacted. That is happening now, so I think you will see a roll-back on lots of goods that saw a spike. Maybe not so much with food, but with lots of manufactured products. Then again, not everyone passed their costs through, and they all want to average out this loss of margin by keeping the price as high as possible for as long as possible. That only works if the market demand is there, and I know we both think the consumer is really tapped out this time (heard that before <g>).

One of my suppliers pulled an increase shortly after oil broke 80. And I learned that a competitor just pulled a 5% increase this week. That competitor had zero chance of actually getting that increase, but I was very pleased they were stupid enough to do this. That move opened two very solid opportunities for me, and the party that made the request to me is still interested even after the increase was pulled. That party plans to punish my competitor for their stupidity.

GT
TH



To: orkrious who wrote (169162)12/4/2008 9:31:05 PM
From: patron_anejo_por_favorRead Replies (2) | Respond to of 306849
 
Yeah, all this deflation has managed to completely avoid the stuff I spend money on. WTF?



To: orkrious who wrote (169162)12/5/2008 12:07:17 AM
From: tejekRespond to of 306849
 
I saved money on my heating oil compared to last year. Price this year: $3 per gallon. Last year: $3.59 per gallon.



To: orkrious who wrote (169162)12/5/2008 6:28:44 AM
From: Dan3Respond to of 306849
 
Re: Does anyone think that if I wait until the spring the lower cost of petroleum will have worked its way back into the cost of the tires and they will be significantly less?

It sounds funny, but, except at the very low end, tires are more of a high tech product than a commodity, so they tend to drop in price over time. Tire construction is very complex, and as the manufacturers learn how to reduce labor costs (a big component in tire manufacturing), tire costs drop.

I have an SVT Cobra that (ahem) tends to need new rear tires every year. I've been buying the same Continental ExtremeContacts for a number of years. They were initially around $180 each, and have dropped in price each year.

I bought "this year's" last week and payed $118 each.