Prices.

Barry

Paint Fanatic
Staff member
I thought this might be of interest to you.
Were up just under 30% year to date as of today, and not sure why but we are getting a lot of shops saying have been buying the same brand for 10-23 years and had enough of their twice a year price increases.

WELL, we sent a letter to all of our jobbers last week saying there will be no price increase this fall like the others or next year.
 

Barry

Paint Fanatic
Staff member
I do not need anything, but this makes me want to buy a product from you to show my support!
Thanks!
Because of our size, we have saved just under an $800,000 estimated cost this year on raw materials we have purchased; of course, some things are out of our control, such as Boxes, shipping.

a history lesson, we had a 5% price increase across the board first of the year, the year before, we had a $1.00 per item increase compared to the majors
two price increases a year from 5 to 12% each increase.

Hate to say it, but I did not want an increase the first of this year that we had, but employees point out products like Nason and Omni were higher then we were now, and they were tired of people asking them to compare to those items and private label items.
 

Raymond_B

Hobbyist
Thanks!
Because of our size, we have saved just under an $800,000 estimated cost this year on raw materials we have purchased; of course, some things are out of our control, such as Boxes, shipping.

a history lesson, we had a 5% price increase across the board first of the year, the year before, we had a $1.00 per item increase compared to the majors
two price increases a year from 5 to 12% each increase.

Hate to say it, but I did not want an increase the first of this year that we had, but employees point out products like Nason and Omni were higher then we were now, and they were tired of people asking them to compare to those items and private label items.
Barry it's funny you mention that. I read an article that Peloton had issues selling their stationary exercise bikes UNTIL they raised prices! Making people think they were getting something exclusive, special, or whatever. That's the psychology of marketing I guess :)
 

EddieF

Top Banana
Reds- a few yrs ago my local told me reds went up hence the increase i payed doing my medium garnet red Caddy. True?
 

crashtech

Combo Man
All I know is that it's very difficult to make money in the collision repair business. Our shop does not make money on paint supplies, a situation that the state taxing authority knows full well, which is why they have me pay tax when I buy paint material instead of collecting it when I sell it. So, lower prices on anything I can find are actually the difference between life and death for our business.

Thank you, Barry!
 

Barry

Paint Fanatic
Staff member
All I know is that it's tough to make money in the collision repair business. Our shop does not make money on paint supplies, a situation that the state taxing authority knows full well, which is why they have me pay tax when I buy paint material instead of collecting it when I sell it. So, lower prices on anything I can find are the difference between life and death.

Thank you, Barry!
############$

Here is why the prices are so high.
Two actual cases where I know the owner and the GM of another one.
1) biggest shop in town, paint company, give brand new machine and all equipment like computers, etc.
First sets of tins free and 50% off all toners and paint products.for a one year contract.

2) same as above, except the poor guy is only getting 40% off his purchases; what a screw job?

I'm not sure when the shop's competitor down the street is not getting a discount as he only has four guys work there, but it's nice of him to support his competition and buy from the same company.

Contracts are the only way the majors can keep people like me out of their big shops
 

texasking

Active Member
All I know is that it's very difficult to make money in the collision repair business. Our shop does not make money on paint supplies, a situation that the state taxing authority knows full well, which is why they have me pay tax when I buy paint material instead of collecting it when I sell it. So, lower prices on anything I can find are actually the difference between life and death for our business.

Thank you, Barry!
I remember a long time ago when a certain dealership wanted 33% profit on paint material, and a friend of mine was the painter. He bought all his own material, and after giving the shop their 33%, some weeks he was getting bigger material checks than checks for his labor! The greedy insurance companies have not even come close to keeping up with material costs. They just keep coming up with ways to cut paint time, thus material cost. If a vehicle comes in that needs a pearl red bumper replaced, you will lose money on material if you use a good base, and there is not enough profit anywhere else to make up for it. The insurance companies tell you it will average out because you might make a nickel on a white or black job. o_O
 

Barry

Paint Fanatic
Staff member
True just repaired a 17 Chevy truck paint code 130X "Pull Me Over Red " $195.00 / pint from my jobber RM Diamont and lost on this one.
They get away with it because we allow them, for years I've said body shops in a said state or 50-mile radius must band together as one by himself refuses to supply paint at that cost will just lose the job as it will be sent to the shop next door down.
Years ago, I saw one of the finest shops in Atlanta try to organize for an hourly rate
As one of the most Succesful shops and nicest shops I had ever been in, he was out of business within two years.
 
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