12% surcharge just announced on Kubota products and up to 20% on implements ...

[Porcupine]

Y’all are imagining things. There is no inflation (except for things you need to buy).

The Fed told me so.

 

[Porcupine]

Ain’t that the truth.... the “news” is saying to expect bacon to hit 10 bucks a pound... hamburger is 9 bucks/lb... I can ... and do.. get ribeyes for 6/lb. 1/2” cdx is 50/sheet. Alfalfa is 20 freaking bucks for 115 lb bale, If it weren’t for cheap whiskey I’d really be whining. Glad I got my tiny tractor in March

I’d feel like i scored bigtime if i bought 115 pound bales of Alfalfa for $20.

 

[mcmxi]

If this is true, I am glad I placed my order and locked everything in last month. That said, Kubota's build site still shows the same pricing as in July and the August buying incentives are slightly better than the July buying incentives by a couple hundred $$ and many of the finance deals aren't listed to expire until 12/31/2021. There's no doubt the US, and the rest of the world for that matter, are experiencing inflation right now, primarily driven by increased demand and reduced supply of almost everything due to COVID. If and when the pandemic is under control in the US and globally, supply will increase and demand will decrease.

I think it's a surcharge that Kubota will pass onto the dealer who will pass it onto the customer ... at their discretion I suppose.

 

[johnsayen]

I think it's a surcharge that Kubota will pass onto the dealer who will pass it onto the customer ... at their discretion I suppose.

That doesn’t make much sense. Dealers are not going to charge their customers more than what’s shown on the website. And I doubt many people are buying what’s shown on the lot for less than 11% off MSRP.

 

[mcmxi]

That doesn’t make much sense. Dealers are not going to charge their customers more than what’s shown on the website. And I doubt many people are buying what’s shown on the lot for less than 11% off MSRP.

Look, I don't know how this is going to play out, just repeating what my dealer told me. Call your own dealer and maybe they can clarify.

I've bought a BX and an MX from the local dealer and have ordered another MX. Each time there's a SETUP/PDI charge that does not show up on Kubota's website when you "build" a tractor. This is a charge that the dealer adds to the build sheet just like a car dealer that adds various nebulous charges that may or may not be negotiable.

 

[johnsayen]

Look, I don't know how this is going to play out, just repeating what my dealer told me. Call your own dealer and maybe they can clarify.

I've bought a BX and an MX from the local dealer and have ordered another MX. Each time there's a SETUP/PDI charge that does not show up on Kubota's website when you "build" a tractor. This is a charge that the dealer adds to the build sheet just like a car dealer that adds various nebulous charges that may or may not be negotiable.

I’m with you and understand. And if it sounds like I’m arguing with you that’s not my intention. I’m saying on the surface 11% is a big number and that doesn’t add up with the story. Dealers aren’t going to charge 11% to setup a tractor. I’m not saying that’s what you’re saying.
I am skeptical and find the whole thing weird (like most things in our economy right now)

 

[mcmxi]

I’m with you and understand. And if it sounds like I’m arguing with you that’s not my intention. I’m saying on the surface 11% is a big number and that doesn’t add up with the story. Dealers aren’t going to charge 11% to setup a tractor. I’m not saying that’s what you’re saying.
I am skeptical and find the whole thing weird (like most things in our economy right now)

I'm not trying to argue either, just relaying what I've been told.

I've put a deposit down on the new MX so am locked in but this price increase could help me sell my current MX. Who in their right mind would buy an MX6000 with 60 hours on it for 10% less than the cost of a new one and 0% financing over 5 years? However, if there is truly a 12% price increase coming then my used MX starts to look a little better at around 20% under current pricing ... maybe. Either way I'm ok with keeping it or selling it for a fair price.

I feel bad for anyone who is thinking of buying a new tractor but who might not be able to now. That would suck. Kioti might be getting a lot of business as folks look to cheaper alternatives.

 

[Deleted member 47704]

I'm not trying to argue either, just relaying what I've been told.

I've put a deposit down on the new MX so am locked in but this price increase could help me sell my current MX. Who in their right mind would buy an MX6000 with 60 hours on it for 10% less than the cost of a new one and 0% financing over 5 years? However, if there is truly a 12% price increase coming then my used MX starts to look a little better at around 20% under current pricing ... maybe. Either way I'm ok with keeping it or selling it for a fair price.

I feel bad for anyone who is thinking of buying a new tractor but who might not be able to now. That would suck. Kioti might be getting a lot of business as folks look to cheaper alternatives.

My tractor was delivered this morning.Kicking myself for waiting so long but I got it now.

People are buying tractors wherever they can get them it seems.I was doing the same for a while but it came down to parts and service close by. Kubota raises prices they are not going to have a good year.

 

[GreensvilleJay]

so... have to ask..
what's the difference between a 'surcharge' and a 'price increase' ??

 

[DustyRusty]

so... have to ask..
what's the difference between a 'surcharge' and a 'price increase' ??

In theory, the surcharge is removed when the cost of materials goes down. A price increase never goes away. In my business, there is a fuel surcharge for delivery, which in theory was supposed to go away when fuel prices went down. It never happened, and we just calculate that charge into the total cost of goods, and pass it onto the consumer. In the old days, it was part of the cost of doing business, but with the idiots running the asylum, they keep inventing new ways to skin the cat for greater profits.
I was talking to the salesman at the dealership that I use, and he said that the big increases are going to happen on January 1st. These increases make used tractors more valuable, just like what happened after the "cash for clunkers" fiasco that Washington thought up.

 

[D2Cat]

A few year back when diesel went to near $5 a gallon the trash service co (the big one) put a surcharge on the bill. It was never reduced back to previous levels when fuel prices went down. The surcharge line item on the bill was gone, but the cost was the same ..... and kept going up!

 

[Nicfin36]

A few year back when diesel went to near $5 a gallon the trash service co (the big one) put a surcharge on the bill. It was never reduced back to previous levels when fuel prices went down. The surcharge line item on the bill was gone, but the cost was the same ..... and kept going up!

Yes, just like how food prices and other services increased when gas/fuel prices went up years ago. The spokesmen for the companies explained they just had to adjust their prices for the time being in accordance with the fuel prices. However, when fuel prices dropped back down, prices stayed the same, and the companies never made a peep.

 

[Porcupine]

In theory, the surcharge is removed when the cost of materials goes down. A price increase never goes away. In my business, there is a fuel surcharge for delivery, which in theory was supposed to go away when fuel prices went down. It never happened, and we just calculate that charge into the total cost of goods, and pass it onto the consumer. In the old days, it was part of the cost of doing business, but with the idiots running the asylum, they keep inventing new ways to skin the cat for greater profits.
I was talking to the salesman at the dealership that I use, and he said that the big increases are going to happen on January 1st. These increases make used tractors more valuable, just like what happened after the "cash for clunkers" fiasco that Washington thought up.

I mostly agree with your post, but I’ll also point out that as customers and negotiators in many markets seem absolutely opposed to paying a reasonable price, part of what you’re describing is cost shifting.

The customer is demanding product or service at an untenable profit margin, so you see surcharges and accessorial charges for anything more than the bare bones product or service to maintain a sustainable profitability.

 

[Porcupine]

Yes, just like how food prices and other services increased when gas/fuel prices went up years ago. The spokesmen for the companies explained they just had to adjust their prices for the time being in accordance with the fuel prices. However, when fuel prices dropped back down, prices stayed the same, and the companies never made a peep.

Many companies (mine included) charge a fuel surcharge that is published, and varies with the posted DOT average weekly fuel cost report. The lower the cost of diesel, the lower the surcharge. I don’t recall what the number is, but there is a fuel cost at which the surcharge is zero.

 

[random]

I was in Lowe's today. I walked through the paint section. Several 1 gallon cans of paint I noticed are almost $50 a gallon.

Did you happen to go through lumber? Wondering what a 2x4 stud is going for...

 

[Nicfin36]

Did you happen to go through lumber? Wondering what a 2x4 stud is going for...

I looked online, and here, a 2X4X96 whitewood stud is $4.98 at Home Depot. Lowe's was the same.

 

[DustyRusty]

Talk about surcharges, I wonder how much it cost to have lumber delivered to the stores by armored cars along with the gun toting security guard???

 

[random]

I looked online, and here, a 2X4X96 whitewood stud is $4.98 at Home Depot. Lowe's was the same.

Last time I bought, they were $8 each. Might be worth a trip from NC to get a truckload!

 

[Nicfin36]

Last time I bought, they were $8 each. Might be worth a trip from NC to get a truckload!

I had heard the same. So, maybe prices are going down.

 

[DDCD]

Still holding steady on the plywood with crazy prices, must be trying to dump old stock they purchased at higher prices. Excuse I hear is the deep freeze in February shut down all the chemical plants near Houston so the glue prices went up. PVC is also extremely high.