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Thread: Price rises heads up

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    Price rises heads up

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    For those contemplating VBM in the near future, a heads up...

    I spoke with ECA today and the recent small delivery of stock is all gone. This includes all Domobar Super and Piccolo. The next delivery into Australia is due in late November.

    This means that all Australian stock is either sold or now with dealers and it looks like it will run out again.

    My advice is to move quickly if you have plans on getting one and if you are planning on the big fella to bring on in December, it might be a good idea to lock in your order with your preferred sponsor pretty soon. We have a couple of unallocated machines.

    Chris

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    Re: VBM heads up

    Sad but true, we have one Super (SS) left.

    charlie

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    Re: VBM heads up

    Gentlemen,

    is there really anything to be sad about when there are other excellent machines available in good quantity to fill the gap immediately and into the future?

    Regardz,
    Attilio
    first / original CS site sponsor.

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    Re: VBM heads up

    Yes,I agree with you we are lucky that we have stock of this machine

    Regards


    Renzo

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    Re: Price rises heads up

    As Attilio has mentioned, Diadema machines represent brilliant value. I have been thrilled with the performance of the Junior Extra and Perfetta. Both represent fantastic value!

    ECA dealers received notice today of price increases in all Rocket and VBM product. These are in addition to the recent price increases for VBM.

    My advice is get in quick if you a planning on a espresso machine purchase. We are sure to see increases in the order of 20% prior to Christmas.

    Chris





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    Re: VBM heads up

    Quote Originally Posted by 2muchcoffeeman link=1224482970/0#4 date=1225091703
    ECA dealers received notice today of price increases in all Rocket and VBM product. These are in addition to the recent price increases for VBM.

    My advice is get in quick if you a planning on a espresso machine purchase. We are sure to see increases in the order of 20% prior to Christmas.
    Holy crap on a stick, batman. So ... Rocket giotto = $2850 RRP x 1.2 = $3420 ?!

    Is this absorbing the drop in the $AUD vs Euro since July/August?

    Cheers,

    Luca

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    Re: VBM heads up

    Quote Originally Posted by 2muchcoffeeman link=1224482970/0#4 date=1225091703
    We are sure to see increases in the order of 20% prior to Christmas.
    :o :o :o Brutal

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    Re: VBM heads up

    It had to break eventually and Im sure well be seeing more of it in all sorts of things made offshore. Ive just had to twiddle with Hottop pricing - Im now buying them for a few hundred more than I was SELLING them for in July! :o :( About the only good news in all this is for exporting locally made products (like Pullman Tampers ;))

    Fasten your seatbelt and look at this crash...


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    Re: VBM heads up

    Yep,

    I think we will see lots of imports increasing by up to 30% unless the little Aussie battler improves significantly.

    On the positive side.... crude oil is now about half the price it was not all that *long ago...... *and the exchange rate at that time was about 70cents ...... so in theory petrol prices should fall back to about $1 per litre.....

    Wishful thinking Id guess. ::) ::)

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    Re: Price rises heads up

    Yes guys,

    If you are conteplating a machine this year, I cannot encourage you enough to move very rapidly. We are holding some Giotto and VBM stock at current prices and then bracing for the shock. There is good Aussie stock of Diadema with Cosmorex (and their dealers) and Expobar have informed me that lots of lines are on back order. Melbourne Compak stock is also on back order.

    I hate to say it, but its looking like well be talking $3k or more November onwards for most of the Italian made machines....

    Attilio has great stock of Diadema and the newies- Diadema Junior Extra and Regal 2 litre punch with the best of them on build and performance. These machines represent brilliant buying in the current climate.

    I reckon were in for a rocky ride on all imports. Must be a good time to buy a Commodore ;)

    Chris

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    Re: Price rises heads up

    youch! how bout the spazzies chris - any idea?

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    Re: Price rises heads up

    Well, the AUD has gone from a fairly steady 60 euro cents for a while to about 50 euro cents recently. So on that basis youd expect an increase in the order of what were seeing for giotto and vibiemme. Maybe we could get Andy to automatically index the price brackets in the machine forums against the euro ;P

    So does this mean that the new version of the expobar dual boiler takes a hit, too?

    Cheers,

    Luca


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    Re: Price rises heads up

    Quote Originally Posted by roknee link=1224482970/0#10 date=1225153176
    youch! how bout the spazzies chris - any idea?
    See Aaron, if you just joined Team Minore ages ago, like I said, youd be safe :P ;D




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    Re: Price rises heads up

    Quote Originally Posted by luca link=1224482970/0#11 date=1225154010
    Well, the AUD has gone from a fairly steady 60 euro cents for a while to about 50 euro cents recently. *So on that basis youd expect an increase in the order of what were seeing for giotto and vibiemme. *Maybe we could get Andy to automatically index the price brackets in the machine forums against the euro ;P

    So does this mean that the new version of the expobar dual boiler takes a hit, too?

    Cheers,

    Luca
    Id think so Luca,

    Expobar, LaSpaz, VBM, Rocket, Compak and Mazzer are all on the water. Hopefully importers may have beaten the dollar and locked in orders before things got too bad...

    Its looking like $3k for a Giotto and Id anticpate price rises on many if not all of the above brands...

    Chris

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    Re: Price rises heads up

    Quote Originally Posted by YeeZa link=1224482970/0#12 date=1225154464

    See Aaron, if you just joined Team Minore ages ago, like I said, youd be safe *:P *;D

    who made you their ambassador? :P

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    Re: Price rises heads up

    thanks chris

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    Re: Price rises heads up

    Its not the "locking in of the order" gents.

    Some importers that have been at it a while get "terms" for payment.

    That means you might have ordered before the crunch, but are going to have to find the money to pay AFTER the crunch, at a vastly worsened exchange rate.

    The difference between 0.6100 euro cents to our dollar a month ago, to 0.4775 this morning, means a loss of 22% in the rate of exchange between when an order may have left Italy, to it theoretically landing today...........


    Think about this:

    An increase of over 20% in the cost of an imported machine WIPES OUT the entire profit margin for an importer that was working on "20% on" to his resellers.

    He increases his price then by 20% to retain his margin, and the resellers cant help but pass it on.........

    In addition:
    any machines an importer has already sold out of recently landed consignment but BEFORE he has paid for it, have now turned out to have been sold at a complete - total - dead - zippo profit - loss- or are even in minus territory.

    I have good stock of Diadema Junior and Unico Splendor Maxi machines and some Macap grinders that were paid for before the crunch. This stock will hold us in good stead until Christmas so no worries for christmas stocking purchases between now and then.

    However, watch out for other models.......


    Regardz,
    Attilio
    first / original CS site sponsor.



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    Re: VBM heads up

    Quote Originally Posted by Greg Pullman link=1224482970/0#7 date=1225104375
    It had to break eventually and Im sure well be seeing more of it in all sorts of things made offshore. Ive just had to twiddle with Hottop pricing - Im now buying them for a few hundred more than I was SELLING them for in July! :o :( About the only good news in all this is for exporting locally made products (like Pullman Tampers ;))

    Fasten your seatbelt and look at this crash...
    Yep tell me about it I was very close to buying one in July, now I have to wait and see.........
    But I guess close to buying one doesnt help you now when the prices go up, but I wish I had of jumped!!!!

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    Re: Price rises heads up

    Hi all,

    I had a chat with Charles, CEO of ECA today and received the news of the price rises which were expected...

    Giotto Premium Plus goes to $2999
    VBM Domobar Super Lever increases by up to $300. Super lever black $2.85k and stainless $3.2k.

    All of the Domobar Super range except the black lever model will now reside in the Extreme machines category...(unless Andy decides that its time to vary some numbers)...

    These prices are effective from tomorrow as I understand it.

    We have some stock of Giotto and a couple of Domobar Super Lever stainless as well as a couple of Domobar Piccolo at current prices and then the increase sadly will be kicking in on new orders....

    Sorry to bring bad tidings. I hope that this is the worst of it and that prices will stabilise from here.

    On a positive note, I have confirmation that Expobar and Bezzera as well as Mazzer will hold at current pricing until the end of the year.

    Chris

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    Re: Price rises heads up

    I take it we can expect a similar price drop when the $A appreciates against the Euro? ;D

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    Re: Price rises heads up

    Yes Garbage,

    ECA are comitted to exactly that....In the meantime, yours is appreciating. Ill offer you $600 for it ;)

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    Re: Price rises heads up

    Pricing is now through. Here are the new recommended retail prices on VBM/Rocket....

    Machines: [*]VBM Domobar Piccolo $1569 [*]VBM Domobar Super Lever Black $2849 [*]VBM Domobar Super Lever Stainless $3199 [*]VBM Domobar Super Lever Electronica Stainless $3699 [*]Rocket Epsresso Giotto Premium Plus $2999

    Grinders: [*]ECA KS doserless stainless steel $649 [*]ECA BEST silver $699 [*]ECA BEST polished aluminium $769

    We will maintain current prices on in stock items while they last

    Chris

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    Re: Price rises heads up

    Whilst no-one likes price rises, kudos to the importers/distys and retailers here for the heads-up. I work in the IT industry and thanks to contiued and very rapid slide of the A$, we are getting regular price increases from our suppliers. Our last one came on Friday at 1:30pm - any order not submitted by 4pm would not be honored at prevoiusly-quoted prices. As a reseller, this plays havoc with our sales process. We have been in situations where if had honored a quoted sell price, we would be losing substantial amounts of money.

    Adding insult to injury, none are committing at which point they will review their prices as the A$ rises (personally believe it will bounce back to ~US$0.75 by the end of the year). So having based prices on A$0.60 they will be raking it in every time the dollar rises.

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    Re: Price rises heads up

    Correct me if Im wrong, but with only one company importing the VBM machines, are they more than likely to just pocket the extra margins when the $A does return to the levels of a couple months back and maintaining the new pricing?

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    Re: Price rises heads up

    Quote Originally Posted by garbage link=1224482970/20#23 date=1226228829
    Correct me if Im wrong, but with only one company importing the VBM machines, are they more than likely to just pocket the extra margins when the $A does return to the levels of a couple months back and maintaining the new pricing?
    Perhaps a tad cynical Garbage *:-?...

    #1 ECA has more integrity than that and I have it in writing that they will review pricing and react in line with exchange rates. Keep in mind though that many importers have absorbed the currency fluctuations with massive cuts to margins and in some cases, losses.

    #2 If the price is inflated compared to similar machines, VBM simply wont sell and will be dropped from market.

    Bottom line is that stuff is going up. Isomac have announced their rises. Compak is rising as well. Expobar will follow in the new year with Mazzer and I suspect Diadema as well.

    For those who buy stuff mainly in Euro and USD, theres no option as Attilio outlined ^^^^^.

    In the meantime, I would have thought that you would be pleased as you were able to beat the rise. Hopefully, we will be able to enjoy some positive posts from you sometime soon?

    Chris





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    Re: Price rises heads up

    True - happy that I got in before the rises, but I think my purchasing decision would have been quite different had I missed the old pricing.

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    Re: Price rises heads up

    Quote Originally Posted by 3E61796F646F636A6A6969616D620C0 link=1224482970/24#24 date=1226230092
    Quote Originally Posted by garbage link=1224482970/20#23 date=1226228829
    Correct me if Im wrong, but with only one company importing the VBM machines, are they more than likely to just pocket the extra margins when the $A does return to the levels of a couple months back and maintaining the new pricing?
    Perhaps a tad cynical Garbage *:-?...

    #1 ECA has more integrity than that and I have it in writing that they will review pricing and react in line with exchange rates. Keep in mind though that many importers have absorbed the currency fluctuations with massive cuts to margins and in some cases, losses.

    #2 If the price is inflated compared to similar machines, VBM simply wont sell and will be dropped from market.

    Bottom line is that stuff is going up. Isomac have announced their rises. Compak is rising as well. Expobar will follow in the new year with Mazzer and I suspect Diadema as well.

    For those who buy stuff mainly in Euro and USD, theres no option as Attilio outlined ^^^^^.

    In the meantime, I would have thought that you would be pleased as you were able to beat the rise. Hopefully, we will be able to enjoy some positive posts from you sometime soon?

    Chris



    Cynical, yes. But ...

    Now that the AUD - EURO has gone back up from 0.48 to 0.74, I notice that the prices have not fallen back to BELOW what they were in late 2008.

    My VBM Domobar Super (black) had an RRP of $2300 in late 2008 and is now still $2750 ish.




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    Re: Price rises heads up

    Methinks perhaps other things are built into the price.

    Are you privy to labour/parts/manufacturing costs now as opposed to then?

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    Re: Price rises heads up

    Ahh Garbage,

    Sadly things which appear simple to some are sometimes other than simple. *:-? ::)

    Freight charges to Australia have increased dramatically this year and component costs (parts) are also increasing. Freight forwarders are also charging more. As an example, we were charged nearly $1k storage for a couple of pallets of machines which arrived on a Friday but could not be collected until the following Monday. In addition, I presume that most CSers in employment have yet to take a pay cut this year? All this leads to upward pressure on prices.

    Some importers (CosmoreX with Diadema for example) have decreased wholesale prices a little and this is how we can work on a reduced margin and offer the semi-auto at just under $2k. We also dropped the price of the Alex Duetto.

    Nevertheless, with a continuing stronger $AUD against the Euro, Id hope to see some softening of wholesale prices in 2011. Street prices have already decreased with most retailers operating on a much reduced margin anyway. Just keep in mind that the present situation for most importers was actually a snapshot of what you saw about 6 months ago, not what you viewed on yesterdays news.

    Chris

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    Re: Price rises heads up

    Yes Chris, thats supply and demand at work in the clients favour.

    But, cleints should also note there is this not insignificant thing called "the cost of doing business".

    It is entirely internal to our economy, nothing to do with the exchange rate or things international.

    It is a strange thing that people from outside the industry place the coffee and coffee equipment business under the microscope, pick it to bits and make public observations on it, but in general I cant see too many professions that service this industry, that arent putting the price of their goods and services up to us.

    In addition I am not privy to any information suggesting any of my suppliers will be putting their prices down for me any time soon.

    Just another perspective.

    Regardz,
    A.

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    Re: Price rises heads up

    Quote Originally Posted by 63565B5C68745851515252370 link=1224482970/28#28 date=1291670900
    Sadly things which appear simple to some are sometimes other than simple.
    Well said Chris.

    In a former life as a banker I used to do a lot of work for a customer in both importing and exporting.

    Unlike most of my peers that sent the paperwork to head office for processing, I did it all myself.
    I handled all the invoices and bills of lading and corresponded directly with my customer and the overseas bank handling the paperwork at the other end.

    I had to learn all about what was going on with the whole supply chain and the payments part of it.
    My customer taught me a bit about exchange rates that no one at the bank had.

    Importing things is definitely not just as simple as some people might think.

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    Re: Price rises heads up

    [split] [link=http://coffeesnobs.com.au/YaBB.pl?num=1291782249/0#0][splithere][/link][splithere_end]

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    Re: Price rises heads up

    Excuse my cynicism but ... a worsening of the exchange rate is a perfectly understandable reason for a price rise, just as a reversal of exchange rates should bring a price cut.

    Also, whilst the presumption that most CSers have not taken a pay cut is quite true, these machines are manufactured in Italy, Spain etc where I suggest, if anything, they are actually taking a pay cut.

    Inflation in Australia is well under control so it will be interesting to see what happens to prices in 2011 ;)

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    Re: Price rises heads up

    Quote Originally Posted by 6E51714C40484657230 link=1224482970/32#32 date=1291980975
    Inflation in Australia is well under control so it will be interesting to see what happens to prices in 2011
    Its only of late Ive seen prices fall.
    In all my previous 50 years i dont remember prices going down.

    At the moment the prices I see falling are those in supermarkets.
    I think theyve finally worked out the consumers have had enough of their and their suppliers (multi-nationals) overpricing thats gone on for years.

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    Re: Price rises heads up

    Readers should take care not to be influenced by one dimensional responses here.

    For example:
    a) The exchange rate is but ONE ONLY variable influencing the real cost of things;

    b) Australian business owners are not affected by whether someone in the EU has taken a pay cut. Australian business owners are however influenced by pricing decisions (affecting us) by manufacturers in the EU. A good example of this would be Rancilio, a company that passes on to us an annual price rise. *Did their workers take a pay cut? If they did it appears to be irrelevant to us.

    c) The official rate of inflation is one thing, and the actual effective *cost of doing business of an individual Australian business is another.

    d) Ausie businesses will move their prices up and down as they see fit and they will react to real pressures affecting their operations including supply and demand. These pressures are not one dimensional, and not every business has the same running costs.

    e) the only persons that can make informed judgements on price movements are individual business owners. Opinions from the sidelines and beyond are not relevant.

    Mods:
    I for one wont mind if you shut this topic down as I think it has gone past its useful "use by"...


    A.

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    Re: Price rises heads up

    Quote Originally Posted by 67534452497E624E47474444210 link=1224482970/35#35 date=1292042757
    For example:
    a) The exchange rate is but ONE ONLY variable influencing the real cost of things;
    I thought I said that?

    Quote Originally Posted by 7549544F454453464E45210 link=1224482970/27#27 date=1291647722
    Methinks perhaps other things are built into the price.
    Yep. I did. ;)



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    Re: Price rises heads up

    Quote Originally Posted by 6B5F485E45726E424B4B48482D0 link=1224482970/34#34 date=1292042757
    Mods:
    I for one wont mind if you shut this topic down as I think it has gone past its useful "use by"...
    Yep, I agree Attilio; was just thinking that before I read down to your post....

    Mal.



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