I have just heard a rumor that taxidermy form prices are going up about 40% starting this coming summer because of the foam price cost increases to the supply companies. If this is even close to being true, I would say it time to raise prices unless of course you are in this business for the glory and fame as many it seems are.
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I had an across-the-board price increase on resins that ranged from 3.5 to 5% this past November 1st.....that doesn't translate to 40% increase in my prices, however.
After I, "hung up", I thought about that price increase. A five percent acquisition cost would translate to around 7.5% in-house cost and around 15% increase in sales. If sales were to a middle party and then on to the retail customer, that 15% increase would double to 30% which would mean around a 125% increase in retail price.....er, thereabouts.
Normal mark from FOB acquisition to retail is around 625% when it is all said and done anyway, at least for many manufactured goods sold through normal networking.
All things considered, the mannikin market is reasonably priced, as I see it, and even at an increase, the buyer still gets a lot for the buck.....just raise your fees in accordance and suck it up.
Jonas has a blurp in their new catalog about form prices going up 5%.
The cost of most types of resins are on the rise. Since July 04 we have suffered an increase of certain epoxy resin cost of approx. 33%. We are now on allocation for certain resins. The cause is a shortage of certain additives to make the products for the resin manufacturers. Fortunately this hasn't tranlated too much into a rise in finished goods as of yet. The cost of containers are also on the rise.
Where or when prices will stabilize or normalize who knows. We are currently shopping for alternative ways to keep the impact of this to a minimum if possible.
Ya, lets just suck it up. We are only all red necked baseball capped "low end" business persons that mostly work for minumum wage or less anyway and we need these huge volumes of deer heads, etc, to keep up those truck payments. Hey, the wife works full time at a real job anyway. Hope she has my dinner ready this time when I get home at 8 tonight after finishing this deer foot lamp, that guy still owes me 25.00!
When I mentioned the increase on 1 Nov, that was a single stage increase, an increment against the 30%+ I have incurred this past decade. The resin I pay $30.00 a gallon for today, cost me $18.50 in 1994. What I make with the resin costs my customer a proportionate amount more today, too.
Most resins are downstream petro products, and as oil prices rise, so also do the cost of materials. When I said, "suck it up", I meant there is little we can do about it since the cost increases are at the base of the industry, not the result of some fat-cat profiteering. Cost of goods goes up, prices go up...plain as that. I just raised the price on one line of products we do for a Swedish company by 10% across the board on Jan 1st. They understood, and will pass the increase along.....'at's the way it works.
Now, if we just took all that oil.....Hmmmmm? LOL
on Friday & was told they will no longer sell any foam kits.
It is supposed to be a DEQ thing.
So what will happen now if we cant buy the foam that we alter the forms with.
Sounds like we will be back to plaster & bondo.
If all of the suppliers start this policy We better start voicing our opinion.
My prices are already up high & I do a LOT of alterations, I dont know how we are going to get our customers to pay extreem amounts for altered poses.
there are probably foam products that we can use to substitute the density that we get from our suppliers.
I will start calling some chemical outfits & let you know where & what we can get.
I wish you all the best, as I already know what youll get for an answer. Taxidermy is hardly putting a dent in the foam market, we have zero competitive clout.
I think folks might not know where much of the foam is actually being used in industry today. Heck they use more of this stuff making furniture than we use as a taxidermy industry.
For years us "know-it-alls" in here have been suggesting you guys look at your pricing, and be prepared for these increases, that suppliers couldnt cover the increases for very long, and we have been called many names for having done so. Well, that time has come. The customers will understand. That is, once WE do...
As of January 1, 2004 governmental regulations no longer allow the use of Freon as a blowing or rising agent in the polyeurethane foam used in making taxidermy mannikins. The new regulations allow 3 other types of blowing agents: 245FA, Pentane, and water, all of which are more environmentally friendly. 245FA & Pentane make acceptable foam, but are much more expensive. In addition to these governmental regulations, huge demand from China for "polyols," the key ingredient in the resin portion of our foam, has driven up the cost. Couple that with the recent rise in oil prices and you get a 40% increase in the cost of raw materials for the taxidermy industry. Many companies stock piled the old style of foam before 2004 to avoid the cost increases, but these stock piles have been depleted and now the entire industry is faced with using this new and expensive manufacturing process. The supply companies have absorbed the bulk of the increase, so far. However, some companies have already had to raise their prices to try to keep up with this staggering increase in cost. If market forces continue in their current trend, the taxidermist is sure to see continuing increases in the price of mannikins. To address the issue of foam kits: don't give up hope. There is a technical problem with shipping the new foam, but we are working on a way to be able to sell the new 245FA foam in a kit.