LJ Price increase

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FrameMakers

FrameMakers

PFG, Picture Framing God
Joined
Mar 20, 2001
Posts
7,395
Loc
Powell, OH
Time for another price increase for our good friends at Larson~Juhl. I was told 2% on most items.
I guess they have to pay for Jo~Ann's discounts somewhere.
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We can blame Joann's if you like but don't you suppose that the exchange rate might have a little something to do with it? A good bit of their moulding is imported. The Euro is around 1 E to 1.25 USD right now. A few years (two years maybe) it was around $1 - that's a bit of an increase that someone has to pay for. Two percent isn't too bad - I was expecting more.
 
Hay that increase is not bad….wasn’t the rate of inflation in the US the numbers which were released just before the holiday (Independence day) 3% or there about’s…..you can use inflation to your advantage….think about it…..inflation affects everyone…….and the big advantage of modest inflation is that it puts more money into the economy….modest .inflation…has done wonders for the retail and services industries over here……I’m talking from the earnings for a business in this respect……..if you are a spender….not so good..
 
If anything, the Jo-Anns account is probably giving them additional buying power/volume to negotiate better prices from their sources.
 
....and the price of oil affects everything!
 
One of our suppliers in NZ has just announced a 5% increase and blamed it on oil, although I was expecting a price rise I still say such an "excuse" is a load of codswhallop!!!

The perception that is created when announcing a price rise is important, blaming any one factor is crazy talk. Marketing isn't just for retailers.
 
I do beleive that petroleum prices effect price increases....but what bothers me is that when oil prices go back down you will never see suppliers announce a "price decrease" because energy prices have declined!!! That's just not right!!
But suppliers of any goods do like to take advantage of these situations with oil.....
 
Dave,

I had recently been forced to adjust my prices to American inflation, and Dollar-Euro reality, after 5-6 yrs of using same unchanged prices just like a moron. My adjustment was drastic (20%) yet not even there where it should have been.

Some of my conclusions:
1. Far from being recognized and praised for it, more (prospective) clients used to comment and grumble at my pricing before changing it than 5-6 yrs ago (which is clear sign of power game playing, not a real concern of theirs).
2. All framers I know are keeping their prices well ahead of domestic inflation, but some would unfairly expect suppliers to provide and fuel their extra profit by not altering their prices.
3. To my surprise, all those who were able to sell my product keep on buying it regardless. As a matter of fact I am busier than ever, which, evidently, has to do with economy, not with my price increase.
4. It is very instructive to see my best photo frames buyer (who used to fight over 0.25c price adjustment) paying 6-8 extra dollars for each piece or else.

Finally, I am sure that LJ had very good reasons to increase their selling prices by 2%; more over, I am sure that nobody really expects framers sell their work for same prices like two, three or ten years ago. Please don't act as if your clients can make more money, pay more for everything else, but would give up on framing over a few bucks. Dermot is right. Read his post again.
 
Jerry: You're right we did because I brought up the subject. It was about an even split. We are still getting price increases which typically end in about March and pick up again in September. It appears fuel, though still high (sorry Dermot, we're spoiled) has stablized somewhat. We will probably go with a straight price increase but it will only effect imported moulding (Euro conversion), glass (natural gas and truck fuel surcharges) and foam (again natural gas and oil) while most supplies will not be affected. We've already had to institute price increases in mat board and according to the manufacturer's it is the price of wood pulp which I can understand if you have paid attention to the price of lumber at the yards.

I would have to say the LJ's 2% is probably reasonable but I also must say that I don't think it's their first price increase this year. I may be wrong.

Dermot: That's just plain spooky.
 
The CSO (Central Statistics Offices) figures are just out in Ireland….

The Headlines…..from our national new service……

Higher transport costs nudge up inflation

July 08, 2004 13:23 (that’s just a few minutes ago Irish time)
Figures from the Central Statistics Offices show that the consumer price index rose 0.6% in June from the previous month to stand 2.3% higher on the year, with higher fuel prices nudging up transport costs………..

Follow the link for the rest of the story…. http://www.rte.ie/business/2004/0708/inflation.html
 
Oh…John and myself posting at the same time..
John I know you guys are spoilt….but that said…..because we pay a higher tax on fuel …….one benefit is ……we have much lower health care cost (very very good health care)…….I recall a thread of about a year ago or more ….about what you guys pay for health insurance……I almost peacefully passed away with shock…..if memory served me correct you guys were between 10 and 20 times more than we would pay for top level private health insurance ……public health care is free (and it’s not the worst)…….I digress….
 
I have noticed price increases from just about every one of my suppliers. My customers have noticed price increases from me. Funny how that works.

John
 
Hi Dermot-Would you share what percent of your household income goes to various taxes?

For example (and using what I know your Household income to be approx)we would pay approx 32% in payroll deducted taxes (income, soc security, unemployment)

Fuel taxes average (vary by state) around .40 a gal

Sales taxes average around .08

Property taxes, license fees and usage taxes vary so greatly as not be comparative.

We would all like to have free health care, but we all know somebody has to pay for it.

In this country, most people prefer to pay less in taxes and take care of our own personal needs as we see best suited. But, perhaps you could share what the averages might be paid in taxes that offset that much lower health costs.

We know none of us would stand for paying $5/gal for gas to get lower health care costs, for example. Many were ready to take up arms when it went over $2.

It might be a real eye-opener if most of us knew how much of your income nevers makes it into your pay envelope
 
Hi Bob

Great idea….this is a topic I love to debate….”Spend Power”….in my book it what it’s all about

I will put some numbers together……… it will take me a few days ……..business has picked up a little…..this “Preservation Picture Framing” has caught me by surprise (I'm on a big learning curve) I was not exception any action in that area for a few more months and more like next year…. we also have some friends coming in from Spain tomorrow…..

Again a great idea….and I want to be as accurate as I can……I think Ireland will be a pleasant surprise for you.

I will make a new posting in the Business Forum…..I’m sure LJ are not very interested in the economics of an Irish family…..
 
I’m not crazy about any price increases, but the thing that frosts my eyebrows is that the Larson-Juhl ONLINE prices dated <u>July 8, 2004</u> are NOT the same as I received in the mail.

The online “updated” prices are the old ones.
 
Thats right Bill - the prices are not in effect yet. I can't believe that anyone can flame a price increase as small as this.

Pat :D
 
Would you all rather have 2% price increases twice-a-year, or 4% increase annually?

I guess your answer will depend on whether you update your price manually or use a commercial POS.

I am grateful that I have an L-J rep who emails lists of discontinued mats and mouldings so we don't have to go through the new price list item-by-item to see what's missing.
 
Everyone,

Ask your LJ Rep how they are able to decrease there moulding prices in Western Canada this spring and yet raise prices in your region.
 
The reason for the flame is that LJ charges 3 times more than my other suppliers for roughly the same product. LJ keeps raising & raising to the rafters. There is a perseption by the public and even within our own framing community that framing is to expensive.

Yes there are issues with the euro, but my other suppliers have found ways to keep thier prices down by finding new suppliers or re-bidding a line. But as LJ goes so goes the industry.

We are in a death spiral
As prices go up, we sell less. When we sell less we need to raise prices to cover our fixed costs with less work, and so-on.
 
LJ charges 3 times more than my other suppliers
Click to expand...
Well, then it's a no brainer. Why buy from LJ?

We often find the United has better prices on some hardware type items but overall we haven't run into LJ being 3x more expensive.
 
On those items it is a no-brainer. Not all items are available from secondary sources. I am sure that all of thier mouldings use the same pricing structure. I can buy a 340cb at .69 instead of 1.92 box price or 2.74 base length from LJ.

The quality is the same! Sometimes the cheap stuff is even better.

Does LJ's first rate service justify this kind of differnce? I don't think so.
 
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