Whats up with the price increase??

[tjd]

We'll have to see how this plays out. I've always been of the idea that the restoration costs of this automobile if it is to be done right is/was cost prohibitive and that was under the old prices. Sadly this development will increase the value and the attractiveness of parting a DeLorean out. It will also sting owners of the average 15K DeLorean (Rolling restoration if you will). On the up side It should have some positive effect on top notched cars that are together cosmetically and mechanically and are well maintained.

[OverlandMan]

If I'm running a business, I'm not telling my customers about price increases until after they are in effect. Otherwise, I'd expect a mad rush while the old costs are still in place and a cold spell after the price increase. Not a good strategy if you're trying to make it out there.

It's a bummer that the costs are going up, no doubt. But I'm sure they anticipated the owners reaction (as seen on this forum) and took that into consideration.

My .02

[LEVY]

If I'm running a business, I'm not telling my customers about price increases until after they are in effect. Otherwise, I'd expect a mad rush while the old costs are still in place and a cold spell after the price increase. Not a good strategy if you're trying to make it out there.

It's a bummer that the costs are going up, no doubt. But I'm sure they anticipated the owners reaction (as seen on this forum) and took that into consideration.

My .02

I do run a business, all, again, all my suppliers would let me know of any price increase and I will notify my customers. That is common practice among respectable businesses. Exception would be parts made out of metals that price change everyday (like lead), but then price changes up and down accordingly.

LEVY

[Mark D]

I do run a business, all, again, all my suppliers would let me know of any price increase and I will notify my customers. That is common practice among respectable businesses. Exception would be parts made out of metals that price change everyday (like lead), but then price changes up and down accordingly.

LEVY

This is a moot point since apparently none of the outsourced "improved" parts went up in price. The 25% increase was only on the existing supply of NOS parts. Prices for these parts are not affected by outside suppliers, raw material costs, etc.

I will agree that it would have been nice for DMCH to notify us of the price jump but I don't think there is a reasonable expectation that they should have been required to tell anyone in advance.

[Mark D]

I had some old parts spreadsheets that listed the previous DMCH prices so I entered in the new prices from the website and calculated the price increase percentage. Here is the comparison for the front suspension parts:



As others have stated for most NOS items there was a price increase of 25%.

Hardware prices seem to be all over the map with some prices remaining the same and others raising 50-100%

Contrary to my previous post there were a few 'improved' outsourced parts that went up in price as well.


...Over the past year I've put at least 5k in my car as part of a chassis restoration project so feel pretty lucky that I didn't wait another year to start.

[OverlandMan]

I do run a business, all, again, all my suppliers would let me know of any price increase and I will notify my customers. That is common practice among respectable businesses. Exception would be parts made out of metals that price change everyday (like lead), but then price changes up and down accordingly.

LEVY

That's fine and to each his own. I disagree and don't feel like any businesses owe it to their customers to notify them in advance of price increases. My grocery store doesn't notify me when the price of beef goes up. I know DMCH is a more specialized niche business compared to a grocery store but business is business.

But I respect your decision to run your business the way you see fit.

[Chris4099]

This is a moot point since apparently none of the outsourced "improved" parts went up in price. The 25% increase was only on the existing supply of NOS parts. Prices for these parts are not affected by outside suppliers, raw material costs, etc.

There was a Forbes article a few years back that talked about this and how they were able to pay off the original loan used to purchase the parts awhile ago. This means that aside from fixed annual costs (storage, insurance... which was somewhere between $50K-100K), they make 100% profit from NOS parts. So while I could expect minor increases over the years to adjust for inflation or individual increases when particular parts start becoming rare, this massive increase looks suspicious. It is their parts and they can set prices as they see fit, but this only makes me want to purchase elsewhere.

I wonder how long it will be before John at specialtauto.com decides to advertise about how many of his parts are suddenly so much cheaper then his main competition?

[Jim D]

Here is a real example of how such price hikes affect the average owner. I have a 81 that has a "bad" engine. I was planning to replace the engine with the correct original type power plant. Now I will look around for other options such as a non stock engine. It really gets down to what one should spend on a car that can be bought for $20,000-$25,000 in great shape. Maybe we just need to raise the car price to the $40,000-$50,000 range!
As more cars are parted out just for the money and the current owners consider modified restorations, the number of original cars will continue to decrease and only be found in Museums.

[LEVY]

Everyone's cost of doing business has gone up. Most of our increases will go into effect January first as well. Everything is going up between 18-27% at Dpi. You can blame this economy.

This is a moot point since apparently none of the outsourced "improved" parts went up in price. The 25% increase was only on the existing supply of NOS parts. Prices for these parts are not affected by outside suppliers, raw material costs, etc.

I will agree that it would have been nice for DMCH to notify us of the price jump but I don't think there is a reasonable expectation that they should have been required to tell anyone in advance.

OK, DMCH increased prices on NOS parts, I can understand that.

Seems like that gave green light to others, DPI also announced a increase on part prices, non related to NOS.

LEVY

[Delorean Industries]

Everything is going to vary in some way. Hey, at least I'm telling you! Some things will actually be decreasing for what it is worth. I have no control over required prices on SW products etc.

Engine packages are increasing obviously because everything is new and more expensive to produce.