So, do you guys think the sharp rise in copper will run any of the low ballers or under capitalized companies out? I don't wish this on anyone, but I would like to see average prices go up and stay up even after copper goes back down. We adjusted our prices with little complaint from our customers, we don't plan to go back down, at least not fully. What are you guys thoughts?
I think the last time some companies in our area raised prices was 1978 or so whenever the last copper shortage was.
[This message has been edited by Electric Eagle (edited 06-11-2006).]
David, I have thought the same thing. I watch the low ballers turn money instead of making money and think, if it ended tomorrow how would those guy pay the supply bills in thirty days.
I have caught some resistance from some of my builders about the latest price hike. I raised the line item take off sheet across the board ( to cover the increase in fuel, insurance and the every day cost of doing business) and then added a copper surcharge to every foot of wire we use on the job. I adjust to market price weekly based on what my replacememt cost is.
It raised the price by a dollar a foot roughly (I bill per drop but the ol' GCs love to look at it by the foot ya know).
For those that cant handle it, I tell em look in the yellow pages under "electricians"
#158483 - 06/14/0610:08 AMRe: Will copper prices run the low ballers out
High prices will have the same effect as any other stress placed upon a business: it will push the marginal businesses out. "Marginal," that is, in terms of business operations. As customers resist higherprices, the 'cheap' guys might even have a slight advantage- for a moment.
Material prices affect everyone the same... the copper mine doesn't care who buys the stuff. If your cash flow is poor, your credit shakey, your work inefficient, and your overhead out of control, then the price increase just might push you over the edge.