Heed Wayne's warning!! Prices Incresing!!

[v9ff]

Man... when Wayne warned us at the end of last year that the prices were going up this year, he wasn't kiddin'!

I had my heart set on a 930S steering wheel for my '84 and finally got enough saved for one but got sticker shock when I went to buy it.

http://www.pelicanparts.com/catalog/shopcart/911M/POR_911M_911REC_pg3.htm#item0

Only a week or so ago, it was $229-ish... now it's almost $100 more!! Looks like I'll have to look towards getting something used... probably won't be a 930S wheels but I beggars can't be choosers.

Buy your new parts now before they jump in price!!

[Shuie]

I wish I had bought a yoke last year before the price went up.

[MIK911]

What? When did this (price increase) happen?
I was contemplating this 930S wheel also, but this news of the price hike just made the decision for me.

Wayne, why the huge increase in price of THIS item?

Mike

[emcon5]

Originally posted by MIK911
What? When did this (price increase) happen?

My guess would be early 2003.



Tom

[beepbeep]

Unfortunately, it's probably more expensive for Wayne to buy stuff from Europe, thus higher prices. On the flip side, US is selling more of it's (now cheaper) domestic stuff to us europeans, tipping the balance in your favour. (I ordered Gothenburg,Sweden -produced SKF wheel-bearings from Pelican two weeks ago)

Slightly OT (I just had a lecture on this):
About low dollar: Does anybody know why is it so low? Is Euro goverment pushing euro or are US money presses working overtime? I wonder if Iraq war has anything to do with this. I mean you can finance war two ways: either raised taxes (a big no-no in US) or you let your money presses run little harder, which inevitably produces inflation. Raised taxes are better way, beacuse it equally spreads the burden among people. If expenses are covered by more paper and thus, inflation, loan givers are losing and loan takers are winning which has long term effects on national morale.

Just a tought.

[Scooter]

The price increase did not happen in early 2003, but rather, early 2004. In other words, just in the last couple of weeks. I understand the weak dollar vs. the Euro, but this is a big hit all at once (approximately 39%). I am familiar with finance and business, so I understand the arguments that may be presented. Bottom line, this steering wheel is too expensive for me to justify at this point in time. I already have a Momo that I can use for a while longer. Maybe at at a later date, I may be able to justify paying almost $100 more, but for now, I can't. I am not angry with Pelican for the increase. Unfortunately for both Pelican and myself, they will not be making a sale, and I will not be getting a new steering wheel.

[ChrisBennet]

Originally posted by beepbeep
Slightly OT (I just had a lecture on this):
About low dollar: Does anybody know why is it so low? Is Euro goverment pushing euro or are US money presses working overtime? I wonder if Iraq war has anything to do with this. I mean you can finance war two ways: either raised taxes (a big no-no in US) or you let your money presses run little harder, which inevitably produces inflation.

Perhaps there is another reason. Currencies are traded and like any commodity, the value is set by market forces. Maybe the US dollar isn't in as much demand so it's value is less?
-Chris

[yellow911turbo]

Mr. Greenspan says that the reason for the low value of U.S. dollar is the lowering of the interest rates. Can someone explain that?

[naparsei]

Originally posted by yellow911turbo
Mr. Greenspan says that the reason for the low value of U.S. dollar is the lowering of the interest rates. Can someone explain that?

Assume you are indifferent to having your money invested in your home country. Therefore, you will want to invest your dollars (in a bond, or a CD) where rates are highest = more demand for currencies with high interest rates, less demand for currencies with low interest rates. Dollar falls. Caveat is that of course, many countries with very high interest rates (think Latin America, or the famous example, Post WWI Germany) carry the risk of devaluing their currency, so at the high extreme, there is additional risk.

FWIW, nobody understands anything Greenspan says. I heard hiim speak in person on the "New Economy" and when he finished, every reporter ran outside and began relaying their story back to the home office via cell phone. From the snatches of conversations I heard, each reporter had a different "take" on the meaning and direction of the speech.

[yelcab1]

Originally posted by yellow911turbo
Mr. Greenspan says that the reason for the low value of U.S. dollar is the lowering of the interest rates. Can someone explain that?

If you have money and you want to invest in an interest paying instrument like (T-bills or government bonds paying interest); and if the US T-bill is paying 2%, while Frnace T-bill is paying 3%, you would buy France T-bill. Since you can only buy French T-bill with Euro (they don't take $$) That means Frecnh Euro is now in more demand and American $$ is in less demand vis-a-vis the french Euro. Therefore, american $$ falls in value vis-a-vis Euros.

[Jamie79SC]

Yellow 911 and beep beep, I don't think it's any mystery why the dollar is weakening.

If US interest rates are low, people inside and outside the United States are less likely to hold investements in US currency when they can get a better return elswhere. Therefor they 'sell' dollars for other currencies. As with any other market, many sellers result in a lower price for what is being sold.

I suspect that Federal Reserve policy is encouraging a weakening dollar both in hopes of bolstering US exports and in preperation for the run on dollars when the US starts borrowing in ernest to finance the latest tax cuts and 'war on terrorism', resulting in rising interest rates.

It's been 25 years since my last econ. class so anyone feel free to argue or add as you see fit.

edit: I guess I'm the slowest typest here

[yellow911turbo]

Thanks naparsei and yelcab1 (edit) and jamie79sc.

Same answer posted at the same time. Makes a lot of sense. The reason for lower interest rates is to boost the economy by increasing the flow of money within the country, correct? That would be a direct relationship between interest rates and the currency value in the way that you explain it. That would have to mean that the effect of money flow in the country would be greater and more beneficial than the amount lost in those that moved their investment overseas otherwise it wouldn't be beneficial for the government and eventually you and me... or am I missing something?

(sorry for starting an economy discussion... if necessery kick me, I deserve it.)

[jbryant]

I am glad I got my new wheel in Dec.

[naparsei]

Economic stimulus is usually the reason for low interest rates, but it doesn't always work (see Japan). Whatever you do, do NOT try to further your understanding of currency markets by watching CNBC, etc. If you keep it at the economic theory level, it will almost make sense. If you try to actually determine why currencies are actually moving in certain directions on anything other than a long term basis, you can't really succeed, IMO.

[Jamie79SC]

Naparsei,

True, true, macro economics occurs over quarters and years, not hours, days or weeks.

[Superman]

Economists are some of my favorite people. Not Greenspan, but real economists. I have known a few. At a minimum, they smile at economic models and admit it's a social science. It's not physics. It's more like sociology.

[dd74]

Jim, you nailed it.

[Rondinone]

A few good sites are

www.economist.com
www.econlib.org

When you really want some punishment subscribe to investors business daily.

I'm impressed. You guys have provided some pretty accurate answers. We certainly won't be seeing a discussion like this over at preludepower.com.

[911SCfanatic]

The price increases went into effect at least several months ago. Replacement seat belt went up about 50% from $155 to $225 and O2 sensors went up about 25% from $65 to $82 along with other parts I have on my project list. Rubber trim has gone up. My ever increasing parts budget is buying me less unfortunately.

[Wayne 962]

You guys are 100% correct. This has 100% to do with rising exchange rates - we have not adjusted the margins that we make on these parts. As for the price increase going up, these parts (like these wheels) are stocked in multiple warehouses (our warehouse, our suppliers warehouse, etc.) so when supplies run out and you have to order more, that's when the price goes up.

Our cost on this wheel has increased tremendously, as we buy direct from Europe.

On a related note, the Prototipos are almost all gone, and MOMO has swore that they won't make any more of them, unless we order a whole buttload (imagine your bedroom filled with nothing but stacks of Prototipos). I have only a few left at this time.

-Wayne