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Golden age!


FLO

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Recently I mentioned that manufacturers, importers and distributors have been absorbing price increases and probably would continue to til after Christmas. Well, I had an interesting conversation with OVL (Skywatcher's importers) today. They have confirmed that prices are definitely set to rise in the New Year.

Prices now are absolutely rock-bottom! Astro kit has never been this affordable and probably never will be again, at least for the foreseeable future. We really are in the 'golden age' (their words, not mine) of affordable astro kit :D

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They weren't specific Chris but price rises are long overdue so I guess they will be significant. I get the impression they will also be across the board! We ourselves are giving serious thought to what we should be buying for FLO's demo/Star Party stock, before the increases. Oh for a warehouse and a pile of cash :D

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Production in China is REALLY feeling the pinch, bearing in mind transactions are in $ :shock: , fuel prices refuse to come down significantly, USA is probably their biggest mkt and we all know what do-da's they're in, it was always gonna come !

Lets not forget how the OVL stuff dropped significantly in price about a yr or so ago, so any rise will really reinstate those pre-drop prices.

I feel sure they will come back down at some point but when ??

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Does this mean that the days of the dollar pound price match are over and that astro prices will be more in pounds than they are in dollars?

I don't know Martin, you'll have to ask those dealers who take part in that fiasco :help:

I am as annoyed at the rip-off Britain antics as you are so wherever possible we import directly from the supplier and base our prices on the US price plus VAT, Duty and delivery :D

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Production in China is REALLY feeling the pinch, bearing in mind transactions are in $ :shock: , fuel prices refuse to come down significantly, USA is probably their biggest mkt and we all know what do-da's they're in, it was always gonna come !

Lets not forget how the OVL stuff dropped significantly in price about a yr or so ago, so any rise will really reinstate those pre-drop prices.

China is also developing so fast that their workers are no longer quite so willing to work for very small wages. As their general wealth increases and larger sections of their population become effectively "middle class" so does there desire for the various comforts and consumer goods that we take for granted. This increases wage costs, demand, prices etc etc... basically the Chinese are becoming less competitive.

I feel sure they will come back down at some point but when ??

Just as soon as they find a cheaper country. Perhaps North Korea/Vietnam one day...

James

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I have a pile of junk in my garage and would love to turn it into cash.....

Does anyone have a 21st Century recipe for alchemy :help::lol:

Yeah! The chief exec's of banks obviously do as they'll still come out of all the turmoil smelling of roses and making a fortune. :D

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China announced yesterday a very aggresive road building / home building scheme. This they hope will help to offset the worldwide recession.

The chinese save massive amounts of money - we in the west don't.

Salaries are going up at quite a rate.

I agree that china is going to really feel it when another "poor" country starts to produce - maybe South America...

Ant

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Sounds more like 'back margin' to me. Its what the Japanes do and the South Koreans as well.

Basically you bang out a product - say a telescope - at way below its production costs. The aim isn't to make money but simply to drive competitors out of the market. In a few years time your competitors have gone, your own production has ramped up allowing better economies of scale, with luck you have developed new production techniques along the way and then you push the price back up and recover any losses - your now the dominant player so the market has to pay the rate you charge.

The Japanese played this stratgey very successfully in a whole range of markets - thats why when poeple used to say of Sony for instance 'I dont know how they do it for the price' the answer was they didn't - when you were paying £30 for a walkman they were costing £70 to make in the early days.

If your old enough you can remember when Japanese goods were seen as 2nd rate - been a long time since thats been true hasn't it ?

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The Chinese have a huge balance of payments trade surplus. The middle east and far east generally are savers rather than the westerns who have ramped up large borrowings. Also, there is a large demand for fuel - with fixed supply - has also contributed.

Back to telescopes. I think Steve is right to give us fair warning on what he sees will happen in the new year. I wonder how his business will react; other than his "plea" for a larger warehouse and more cash. Does that mean that we all have to throw our cars out of our garages and set up an internet campaign to raise 'donations' similar to Obamas election funding!!!!!

Well, where do we go from here??

John

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I think Steve is right to give us fair warning on what he sees will happen in the new year. I wonder how his business will react; other than his "plea" for a larger warehouse and more cash.

It wasn't a plea :D

Its just that 'grown-up' companies (FLO is only two-years old) with spare cash and a warehouse can buy now while prices are low.

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"Crikey! How old do you need to be for that?! icon_eek.gificon_smile.gif "

:laughing3: :laughing3: Oh you are soooooo going to die for that :laughing3: :laughing3:

Andy

I'm quaking! My guess is, as I don't have any recolection of that period in history, someone old enough will be on a zimmer frame! :D

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About 50 is old enough - I remember getting given a toy for a birthday when I was young and a few days later it broke - I can remember my mum looking at it and saying 'oh - its made in Japan - thats why - we'll just throw it away and get you another one'.

That was how Japanese goods were seen - just cheap and nasty. I remember the first Honda cars coming into the UK and they were universally trashed by the motor trade who said 'yeah well they were ok with bikes but they'll NEVER be bale to compete with cars HAR HAR'

Oh dear.....showing my age again :D:help::lol:

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You would think with the current economic climate on a global basis that importers would look to reduce prices further not increase them.

I think the credit crunch will get worse after Christmas and no doubt the uk government is allowing the markets to stay bouyant until after that period at which time they will drop further. The government is fully aware of the need for a strong market at Christmas as this period usually keeps many business afloat for the remainder of the year, and that even goes for some very large, very well known companies.

I therefore consider (and I could be wrong) that any companies or retailers which increase their prices over the next few months will be needing to slash them not long after.

I appreciate that the world of astronomy is niche and therefore may not directly be affected per se but we will all feel the credit crunch in the not to distant future.

Anywhoo - thats my thoughts.

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