Allen Models raise prices

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Steve Alley
Posts: 216
Joined: Thu Dec 20, 2012 12:30 am

Allen Models raise prices

Post by Steve Alley »

Allen Models today had to increase pricing by 20 percent.
I bothers me to do so.

I have not in the past include cost for shipments of pick up of castings. Meaning the cost to go after them or have them ship in. Today's pricing put the company more in line what it should have been. Still this is not enough put to hit the market place any high would be to high.

Allen models in my hands for the past 2 1/2 years has not made pricing changes. Also in Marty's hands, his last increase was in 2015. I have been trying so hard to give a quality parts and pricing. Also add to the line and improving the line.

There is a lot of things going on behind the seen's of time and effort. I have many changes and additions that need for the company to make profit to do so. In the future we are going to add 5 more engines, Tender kits, New Cylinder addition also.

Please be understanding for this changes, I hope to make this a company to rely on and know it will always be around for those that need parts or kits.

Thank You
Steve Alley
rkcarguy
Posts: 1730
Joined: Tue Aug 22, 2017 10:33 am
Location: Wa State

Re: Allen Models raise prices

Post by rkcarguy »

Steve,

I work in the steel and fabrication industry and prices are rising sharply on materials. Here's the deal. The US steel mills release sheet pricing, of which vendors would negotiate the purchase of say 500 tons or more, at a discount from this sheet pricing. This was typically about $160/ton discount or 8 cents per #. The mills got together and collectively decided to stick to this sheet pricing and offer no more discounts in this strong steel market. Furthermore, there have been another 4.5 cents a pound increases also announced in January, so that's a total of 12.5 cents per # increase on material that was trending in the 40 cent/# range. That's representing a 28% increase in steel on a per pound basis. This escalation is hitting other materials as well. We've had some unhappy customers (we specifically exclude material escalation from our contracts and have the right to pass it on), and had a job get cancelled due to it. There isn't much anyone can do though, it's demand and supply, and at least at our level, we aren't ripping anyone off and neither are the steel vendors. I feel you're justified in your price increases and hope your customers are understanding.
Jawn
Posts: 283
Joined: Wed Apr 09, 2014 12:39 pm
Location: Canton, GA

Re: Allen Models raise prices

Post by Jawn »

Sorry to hear prices are rising, but if your costs have risen you can't help but to pass it on.

Keep up the good work. I'm glad to see the improvements to the product line, especially things like the water jet frames and laser cut parts.
hptwin
Posts: 51
Joined: Thu Apr 24, 2008 10:36 pm
Location: Sweetwater, New Jersey

Re: Allen Models raise prices

Post by hptwin »

Steve,
I am sorry that your costs are going up and you have had to raise prices, it is an unavoidable fact of life.
I can say without any doubt that I would rather pay a little more (it only hurts when I write the check) and have your castings and supplies available to me, than to have Allen Models become just another fond memory.
Thank you for helping to keep the hobby alive and thriving.
Best regards, Mike
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