Tool Price Inflation

[beech1948]

I was just looking at Axminster latest marketing broadsheet and it occured to me that prices were definitely now at an all time high.

Three years ago I bought a Veritas Low Angle Block plane new for £84.50.
Today looking in Axminsters blurb that same plane is £102.50.

How in the hell can such a change of price be justified in such a small period of time. Its about 25% ( ish I'm too lazy today to get out the calculator) yet the £ vs $ rates has gone dramatically in the £'s favour with the £ often worth $2 during this time. VAT and Import taxes are the same. Transport has not gone up enough to trigger such a massive rise.

My back ground includes many years working on Global pricing strategies, factory costs, global transport of goods and end use country price stratregies. There is a a fair chance that I know what I'm talking and thinking about here.

This seems to be just another case of rip off Britain.

On the Lee Valley site a low angle block plane is US $ 129.00. OR about £65 (ish..too lazy to get calculator etc etc). So the Axminster price is about £37.50 more than Lee Valley.

Lets bear in mind that the US $ 129 includes factory materials, factory machining, factory profit, all factory costs, wharehousing, shipping, US taxes, transport to distributors, sales overhead, marketing overhead and RETAIL profit. That shipping will include expensive road transport for upto 1500 miles maybe more. So thats trucking half way across the Atlantic.

What the hell is going on. Is it just that tool jewellery is now seen as the latest gouge 'em if you can opportunity.

I'm not yet blaming Axminster but without a good solid answer I will not be buying much in the UK for years to come. I am starting to think that if this is another rip off opportunity being exploited by sellers then how many more are also taking place. And its time to fight back.

The old generalisations which are trotted out about local costs really do not apply here as very little has changed in fundamental UK business compliance costs..that is compliance with UK Government taxes and VAT.

regards

Alan

 

[ike]

What the hell is going on. Is it just that tool jewellery is now seen as the latest gouge 'em if you can opportunity.

Well there's the costs and there's the price of stuff. Connected only by some fuzzy logic called 'value'.

They charge as much as they can get away with. It's called business. If we as buyers don't like it, we must look elsewhere.

Ike

 

[Karl]

I suspect this pricing issue is specific to Veritas planes. I haven't noticed a similair issue with LN planes.

A cynic may suggest that the Veritas planes were priced artificially "low" in their early days in order to compete with LN. Now they've got a foothold, they've increased their prices.

Cheers

Karl

 

[ivan]

When I looked through the latest Axminster catalogue I thought quite a few prices had jumped up by double figures %. And they're publishing at about 6 monthly intervals now.

Your block plane should be just below £80 with tax and duty, although if you order just one, I think you'll get charged VAT/duty on both the tool and carriage, which gets you much closer to Ax's 10% off sale price. Perhaps we should take a leaf from the US book, my sis in law from NY state will not accept any mail order price or carriage charge without an argument; she makes me cringe with her (bad mannered to UK ears) demands - but she gets the ££ off even US prices!

 

[beech1948]

I understand value. The problem is that there is NÓ value for the purchaser in these Lee Valley tools anymore.

Value might be defined as the price at which both parties believe they got a sound deal. Neither one believing that they were chiselled by the other.

As you say I will not be buying from Axminster or Brimark.

This of course will not affect Lee Valley, Axminster etc one jot.

What might affect them is if many of the UK buyers simply withheld their buying and money.

My dad always used to say. A fool and their money are soon parted.

regards
Alan

 

[beech1948]

Ivan,
I think that is the issue. Your sister is right. I have tried to argue with UK sellers but to no avail as there always seem to be any number of willing buyers at any price. The Brits seems to have no upper limit on price as they are too shy to argue, too trained by the marketing people to pay whatever is asked.

Brimark, Axminster. You lost a sale here. Lee Valley you lost your reputation here as well/.

Alan

 

[Escudo]

I agree Alan, the Veritas plane prices do seem to have gone up in the last year or so.

The low angle block plane is expensive at over £100 and a bit more if you add the handy looking handle accessories.

I see the $ prices and it is annoying how much extra we pay. What is the cost of buying these from America import duty, VAT etc.

I recently bought four tins of baccy from the states about £15 worth and got stung for £22 bill from the postie.

I always try to support UK independent retailers and have generally decided to buy all my tools from CHT, better to support Mike and Alex rather than a big firm like Axminster. (Especially now that they have bought Brimarc)

Tony.

 

[neilyweely]

beech 1948
Don't mean to be pedantic, and maybe I'm missin something, but a jump from 86 to 102 is closer to 15%. Anyway, point taken, you are absolutely right. I have recently set up by myself as a carpenter, and the cost of the tools has been crippling. I have tried to be sensible and buy good second hand tools, and on the whole have done ok, but the outlay has been massive. I have spent thousands, and the truth is I cannot really afford it;
the kids have had a bit of a lean time, and they don't really understand the concept of investing in a future!

I thought Axminster were mustard, so am worried to hear this. Who can I use to supply me with the tools I find myself needing?

Thanks Beech

neil

 

[beech1948]

Neilyweely,

21.301% to be exact and its is still a massive infaltionary number for such a short period.

alan

 

[beech1948]

I see the $ prices and it is annoying how much extra we pay. What is the cost of buying these from America import duty, VAT etc.

Thats something I also don't understand.

Europe is bigger than the US, has a larger total population but we are still treated as separate countries by the US. Obviously to their advantage. Why do we have to tolerate ththat when prices should be at least the same as the US if not actually lower.

Alan

 

[Hokie]

Here in the US, I noticed the new catalog prices of Veritas have gone up. All tools here (except for LN who has kept the same prices for at least a year back) are about to jump so let's hope they aren't ripping you off just because your UK. Unfortunately, we are all about to get ours.

Your distributors could be anticipating the jump, early. I bought all the LN and other hand tools I could afford this spring in anticipation of not only the material price escalations, but the possible decline in quality as these small tool companies get bigger (Woodpeckers, LN, Blue Spruce, etc.)

Reinforcing steel at my company has gone from about $0.38 per lb to over $0.60 per lb in a few weeks! High strength stuff (270 ksi) and the regular grade 36 stuff is so high that the suppliers won't hold prices for over a day.

 

[Martin Cash]

Out here in the colonies the list price for a Veritas LA Block Plane is AU$239.
At the going exchange rate your 102.50 pounds is AU$215.31.
Seems to me you are still getting comparatively good value.
Many Australian Woodies are sourcing their Lee Valley tools direct from Canada and saving a bundle.
Pity about your VAT and Customs.
So.... is it time to immigrate?
regards
MC

 

[neilyweely]

beech

You are quite right. I don't know a lot about numbers unless they are on a tape measure.

Trouble is they have a monopoly on the market, and they know it. |And they have bulk buying power, which prices the smaller, maybe more honest players out of the game.

Your Dad is right too, but if you need the item in question what do you do?
Seriously?

Cheers mate
neil

 

[Roger]

Well prices have gone up and will no doubt continue to do so. The exchange rate doesn't have a dramatic effect on goods bought from the States (if any at all) as the prices are set when Catalogues are published and stock is bought in. It would be a little impractical otherwise :shock:

The trouble is that once the stuff is landed here, it is immediately subject to the costs of everyone in the U.K. who earns at twice the cost of labour in the States at least.

I lived in Canada and the States for over 25 years and I complained then about the prices just as I hear the same complaints here now! But I certainly prefer the system here, with free delivery next day most of the time, no added State or Provincial Sales Tax, no added delivery charges and no added GST (in Canada)

 

[neilyweely]

in other words; like it or lump it.

I knew this was the case really, just hoped maybe you guys knew a great supplier who was not gonna sting me as bad as all the others.

cheers, and happy monday.

neil

 

[paulm]

Try here for veritas stuff Neil, seem a bit cheaper than elsewhere

http://www.ahc-camberley.co.uk/

Cheers, Paul

 

[tnimble]

The Veritas LA block plane is not even sold over here, so let me take the excellent bevel up jointer plane.

Directly from LV: $265.00 which is £134.30
Axminster and CHT both the same price: £180.62
Baptist (NL): €384,00 which is £301.21

Canada £134.30 -> Uk £180.62 = 34 % more expensive :shock:
UK £180.62 -> NL £301.21 = 67 % more expensive :shock: :shock: :shock:
Cannada £134.30 -> NL £301.21 = 124 % more expensive :shock: :shock: :shock: :shock:

One guess where I buy such items? (Note that not all items are that more expensive, at least all planes, and a lot of (esp stationary) powertools are)

I have not monitored the prices over the years.

 

[Harbo]

I cannot really think that manufacturers are trying to rip us off - these goods are not "elastic commodities" i.e. people will not see them as necessities and buy what ever the price.
Material costs throughout the world have increased sharply due to the rise in industrial growth of countries like China and India. Both with rapidly growing economies and insatiable appetites for raw materials. Food prices and shortages are being triggered in a similar way.

Distribution is another matter where lack of competition could be a factor.
I do not know who imports all the LV & LN stuff into the UK or if there's only a sole Importer? But my local supplier, Elliots, gets LV stuff through Brimarc who are now part of Axminster. I do not know who supplies CHT or Ahc but if it is Axminster then there is a bit of a monopoly situation here with a lack of real competition and fixed prices?

To add to this I bought some Proxxon stuff from"Proxxon Direct" to recieve a parcle from Axminster and a copy invoice from Brimarc - the tool world is getting smaller and smaller?

Rod

 

[Hokie]

Well, I agree they are not commodity items, but they are made from materials that are. I also think it's the European system that brings the prices of goods up to meet levels produced domestically. Maybe if we did that in the US, we wouldn't be so dependent on China. But, like my bank, if they anticipate interest rates will fall, they will lower their interest payouts in advance.

Having said that, commodity items that make up the products we buy are all going up. Why? Supply is there, but manufacturers and commodity brokers are stockpiling raw materials. Plus, there are pressures from China and elsewhere. Our steel prices just went up, again. I thought it was all due to our inflation in the US, but it is affecting everybody, worldwide. Here, people are burglarizing homes to steal copper and brass plumbing to sell as scrap. I'm glad I bought all of the new tools I could, that I could afford. Next year, I can concentrate on some antiques I want. When my son grows up, these tools may not be available or affordable. Just have to lock them up very well when not in use.

 

[neilyweely]

hokie

Over here people are getting their phone lines cut off for days because people are digging up the cables and stealin 'em to sell as scrap!!

The site I was workin on a few weeks ago got broken into and they left a lot of raw materials, and concentrated on lead, copper and other metals.
We drove to the local scrappy, and as we were leavin empty handed in drove the local robber with a boot full of our goods!!! The rest, as they say, is history! Point is they took only what was easily sold.
And they took risks to get it too, as they found out.(nasty these chippies!!)

cheers all

neil