Compressor price goes up!

[Hoosier]

Thanks to a recent outrageous oil price and an inflation of consumers' price, the scuba and compressor price seem to go up soon


Once one company jacks up the price, it used to affect to other competitors.


Check out this for Alkin Compressor deal. I am not affiliated with Alkin at all...:mooner:



Oil prices soon to rise! Place your orders before June 15th!

We have been notified by our suppliers that the price of oil is soon to rise on a more permanent basis, and as a result the retail price will also be increasing. To help our customers stock up before the price change we are taking our prices (already the lowest in the nation) and an additional 10% Discount on all oil orders placed before June 15th, 2008. The new prices will go into effect on that date (and the discount will no longer be offered). Please note the discount is applied to the price before shipping.

 

[rcontrera]

It's not just oil. Compressors have been hit pretty hard for the US market since they are made overseas (Italy, Germany, Turkey). The dollar Euro deal hit me last month with a huge price increase on the smallest compressors and the bigger ones last December.

Even the base price of steel has risen so much that we have gotten three price increases on storage bottles since last October!

I think that you will find that anything that comes from outside the US is going to cost a bunch more because of the shrinking dollar.

 

[mempilot]

Compressors have been hit pretty hard for the US market since they are made overseas (Italy, Germany, Turkey). The dollar Euro deal hit me last month with a huge price increase on the smallest compressors and the bigger ones last December.

This is the valid reason for compressor price increase, not oil.

 

[rcontrera]

Sure it is. Oil is a commodity that comes from all over the world and even if there is no actual price increase from the original producer, the price will continue to go up due to the monetary exchange differences... unless it is produced in the US.

 

[Hoosier]

You know there are many factors to affect a manufacturing cost. Oil is one of factors, either direct or indirect. A recent oil price jacks up the prices of commodity without doubt. Alkin is made in Turkey as I recall. Their freight cost might go up as well.

The fact is that the compressor price goes up!

 

[mempilot]

Sure it is. Oil is a commodity that comes from all over the world and even if there is no actual price increase from the original producer, the price will continue to go up due to the monetary exchange differences... unless it is produced in the US.

You just agreed with what I said. Produced outside the US and the exchange rate are why the price has gone up.

Compressors are not a commodity. Other than steel, there are very little quantities of anything resembling a commodity used in their production. Consumeables yes, but the increase in consumeables will not raise the cost of an individual unit in a significant factor. The exhange rate and shipping cost associated with getting here will, and while shipping costs increase due to oil price, again, it will not have the major effect on end user product nearly as impactive as exchange rate.

 

[mempilot]

You know there are many factors to affect a manufacturing cost. Oil is one of factors, either direct or indirect. A recent oil price jacks up the prices of commodity without doubt. Alkin is made in Turkey as I recall. Their freight cost might go up as well.

The fact is that the compressor price goes up!

You can double the price of oil and figure out what the per unit impact is: very little compared to a 40% shift in exchange rate.

 

[Hoosier]

My point is that even commodity price has been jacked up recently.

Come on please.

I am not posting to argue why the price goes up.....

Unless you are a real importer, we don't know why it goes up actually before itemizing every cost.

 

[pescador775]

Compressor oils classified as synthetic esters are made from acid and alcohol. Some synthetics, like those made by Ultrachem, are produced in the USA. It is not clear how OPEC and commodity speculators could influence the price of synthetics unless natural gas is used as a feedstock. The exchange rate is another issue. Traditionally, synthetic oil has been priced higher than petroleum oils like napthalmic and paraffinic. If synthetics are heading up strongly there could be a number of factors at work like attempting to maintain a premium price for premium product regardless of cost of production.

 

[skippy31]

I got that same newsletter from Airtex. On re-reading it I think it says (or means to say) that the price of compressor oils are rising and as a result there will be a price increase on those.

If I'm reading it right I don't think the newsletter meant to say that the price of oil is the driving force behind the increased price of compressor oil.

That's how I read it, but mind you I got the same impression as other posters on the first (and more casual) read lol.

Mat.