Let's be fair...
Jay Kilpatrick in TX
>Russ,
Correct me when I'm wrong (err human, forgive divine?). You wrote, "Oneway lathe prices have been the same for almost 10-years and the chucks for longer than that without a substantial price increase." Since there doesn't seem to be any substantial increase in quality or innovation for those products, then there are only 4 categories that would lead to me understanding a price increase.
1. Materials cost increase. We know this to be true of at least one of the components that go into these products (steel).
2. Labor cost increase. I've no idea if anyone got a raise or cost of living increase. I know if I work hard and benefit the company by increasing the profit margin, I'd expect it.
3. Public Opinion and Marketing. This is a Bailiwick for Oneway, less so for others. This single category has sent competitors to new heights and also dropped others to their knees. I'd be remiss if I didn't give the examples of the Vicmarc debacle and the Oneway triumph of earlier this year. [Vicmarc] Regardless of what, who, or why that particular lathe didn't work as ordered upon delivery is inconsequential. The true consequence was left in the hands and on the heads of those at Vicmarc who failed to act till to late. Sure, it all worked out in the end for the customer who seems to be wholly satisfied; but how much market share did they lose in a sector that is growing quickly. I wouldn�t want to go through the hassle, and when I upgrade I won�t. My memory is long� [Oneway] An owner calls 5 years after purchase with a broken spindle. No questions, Oneway sends a replacement and gives free tech support. Just the facts as presented here; this is not a testimonial (nor do I or am I considering purchasing a Oneway).
4. Global economics. This is where what I�ll call the business �blame game� begins for me in this instance. What I see is much of the World market anchoring their currency worth to ours. We�ve arrived on a plateau on our road towards economic recovery from some of the most disaster (natural and manmade) years in recent time, and it is seen as a possible slide back toward instability. The markets are fickle, and we are currently suffering the end product; a weakened dollar in a seller�s market.
Not that you�ve tried to canonize these companies for providing their products at a competitive price, I don�t think you have. But you can�t overlook that their simply taking advantage of current factors to secure market share and profit margin.
Best Regards,
Jay Kilpatrick�Arm chair economist and general blatherer
