HF Price Check

[highland512]

HF waved its magic wand last night and had a big'o jump in prices.

44" roll cab is now $700
72" roll cab is now $2k
Icon torque wrench I bought Saturday for $100 is now $140.
Air hose reel was $60 is now $150
The nitrile gloves are now $15 a box.

Their tool boxes are no longer worth it IMO. I can go to Menards and get as good if not better for less. What do you think the cause is for such a big jump in pricing? Tariffs, corona, lack of competition, or maybe increasing the cost of their lower tier items makes ICON look more appealing?

[DeadNutz]

If they have jacked up all their prices that much then no need to buy there. I'll just have the wife get me her great discounts on orders from MSC.

[Lookin4_67GalaxieConv]

I just heard about their dramatic price increases.  A very dumb business strategy IMO.

[goodfellow]

The Chinese are raising their prices across the board. Labor/energy costs, and most importantly the elimination and/or curtailment of massive government subsidies to raw material suppliers. Chinese steel was cheap because the government subsidized its production -- those days are gone.

[RustFarmer]

Change in consumer behavior?

Personally, before Covid, I would spend more time shopping around before a purchase.  Now, If I need something, and the store has it, I usually buy it.  So Covid has made me much less price sensitive.  One stop shopping.  I no longer want to go to additional stores.

Maybe HF and other brick and mortar retailers are trying to take advantage of that.  They have to make up for the loss of sales to Amazon.

[gtermini]

There's a near halt on imports currently. So I think their goods stock on the popular items is dwindling fast. And they're back to the good ole price lying that got them smacked with a class action lawsuit a couple years ago.

[slip knot]

What!! they put Sears outa business now they can jack up there prices now that the competition went belly up.

I've seen things coming down in price lately on the webs. I bought a cheapo cut 35 plasma cutter last week for <$150. The wifes new craft projects toy. Also I've been shopping for a couple of 20ft conexs. $1275  in Houston. half price of what I was quoted last year. I'm holding off for $2500 for 2 delivered.

[ken w.]

The last 10 times or so , I walked out of HF with nothing. Usually a friend of mine and his son would stop by and get me to go to HF a few times a month. I didn't even get the freebie with a coupon. Shelves seem to be bare as well.

[highland512]

It must have been a programming glitch or the push back of the customers was instant. Prices are back to what they where last week. Makes you wonder though, are increasing prices coming?

[walrus]

Hasn't everything gone up during past few months? Supplies of electrical items has been tight in my world. Prices have gone up accordingly. Food up, building supplies up, etc.

[highland512]

From what I have seen a lot of things have gone up and some thing went down in my world of construction.

Concrete -unchanged, expecting increases at the end of the year
Rebar- increased 2%
Lumber-increased 5%
Diesel- still decreasing, we bought 1000 gals of non tax fuel last week for 1.50 I haven't seen prices that low in 15 years.
Labor- decreasing

[walrus]

From what I have seen a lot of things have gone up and some thing went down in my world of construction.

Concrete -unchanged, expecting increases at the end of the year
Rebar- increased 2%
Lumber-increased 5%
Diesel- still decreasing, we bought 1000 gals of non tax fuel last week for 1.50 I haven't seen prices that low in 15 years.
Labor- decreasing

Your lumber prices are only up 5%? Kiln Dried 2 by 4s are 8 bucks here.

[highland512]

We use very little top $ lumber, 90% of our lumber is butchered up in making concrete forms.

[DeadNutz]

From what I have seen a lot of things have gone up and some thing went down in my world of construction.

Concrete -unchanged, expecting increases at the end of the year
Rebar- increased 2%
Lumber-increased 5%
Diesel- still decreasing, we bought 1000 gals of non tax fuel last week for 1.50 I haven't seen prices that low in 15 years.
Labor- decreasing

Your lumber prices are only up 5%? Kiln Dried 2 by 4s are 8 bucks here.

I just checked and here in NV they are 6 bucks. I wonder if the Canadian tariffs are responsible for those prices.

[bonneyman]

What!! they put Sears outa business now they can jack up there prices now that the competition went belly up.

I've seen things coming down in price lately on the webs. I bought a cheapo cut 35 plasma cutter last week for <$150. The wifes new craft projects toy. Also I've been shopping for a couple of 20ft conexs. $1275  in Houston. half price of what I was quoted last year. I'm holding off for $2500 for 2 delivered.

Same ole well-driven Asian ploy. The Japs did it to us with TV's and electronics in the 70's and 80's. Try to find a US made TV now. Curtis-Mathis was the last one, and they got crushed because they were so expensive.

One industry after another got put under and then the Asian prices jumped as they were then the only game in town. Bike tires are another one. Last domestic bike tire maker was Carlisle, and they quit in 1987.

I kinda saw it coming at HF with the "new" ICON tool line. Call it new and improved and charge more. I finally bit on a pair of their old composite ratchets, right before ICON was announced. I really liked them, figured I'd like ICON more. Till I saw the prices. Nope - pawnie tools still rule for me!

[highland512]

I wish I could find a good pawn shop. I miss my nasty hole in the wall pawn shops in Louisiana.

[bonneyman]

I wish I could find a good pawn shop. I miss my nasty hole in the wall pawn shops in Louisiana.

Alot of the good local ones have either dropped bin tools or closed entirely. There's only one good one left for tools in Tucson (all the way on the other side of town from me), and there's one good one I know of in Phoenix. I'm going there later this month - looking forward to spending a few hours digging!

[DeadNutz]

I wish I could find a good pawn shop. I miss my nasty hole in the wall pawn shops in Louisiana.

I bought my favorite 1-5/8 Williams DBE wrench from a pawn shop in Louisiana off the bay. I got several big wrenches so cheap I couldn't believe it. I think the shipping was the most expensive part of the deal.

[highland512]

Big tools where easy to find down there. Many tools “walking” out of plants with big pipe flanges.

[Heiny57]

Well that just changed things! I was planning on buying 2, 44 inch, and 1, 26 inch Tool boxes for the new garage to use for a workbench / storage purpose. Plan B, made in America Craftsman. Not as sturdy and only 18” deep, but I’ll make it work.

[Heiny57]

I should have read all the posts here.    The prices haven’t changed. 

[goodfellow]

Just found this in the news. The CEO is raising debt to pad his cash position -- an almost yearly trend he started some years ago.

https://www.yahoo.com/finance/news/billionaire-tool-firm-taps-loans-195023273.html

The streamlining of operations and product offerings are probably a result of these offerings. Selling "junk" level debt is risky, and that could explain a lot about why the company is also hiking prices, and reducing product variety.

[highland512]

I have often thought while looking around HF how they afford their rapid expansion while selling $5 socket sets and $90 welders. 

[fatfillup]

Just read the article Ray referenced, very scary for anyone buying the debt in my opinion.  Makes me wonder if HF is profitable or is it similar to a Ponzi scheme where the ones at the top make bank while the ones at the bottom get stiffed when the company can no longer service the debt

[coolmercury]

Some would call it taking your money and running!!!!

[RustFarmer]

Interesting article.

I wonder if Smidt is doing this so he can get more dividends now and pay the current tax rate on those dividends which for a long term holding would fall under the lower qualified dividends tax rate.

https://moneyinc.com/dividend-tax-rate-2020/
"If your income is more than $38,600 but less than $425,800, then the tax rate on qualified dividends will be 15 percent. For individuals earning in excess of $425,801, the dividend tax rate on qualified dividends will be 20 percent."

If the Dems get power, I guarantee they will raise both the capital gains and dividend tax rates.

Ironically, Smidt is a big Dem doner.

[Hootbro]

Walked through a HF for the first time in probably 5 months and noticed the pricing change on everything else. Want just some basic mechanic type work gloves was shocked in what they wanted for them now.

Also looked around and in every section could see they have gone full in on up scaling their branding and perceived quality content on a lot of items. Some for the better and some not so much.

[goodfellow]

No surprise Hootbro. In many places across the country they are now "the only game in town" for walk-in budget tool purchases. The company is changing rapidly to meet demand, and judging by their valuation, they are succeeding. Stores are opening up a rapid pace; even in these pandemic driven economic times.

[bonneyman]

No surprise Hootbro. In many places across the country they are now "the only game in town" for walk-in budget tool purchases. The company is changing rapidly to meet demand, and judging by their valuation, they are succeeding. Stores are opening up a rapid pace; even in these pandemic driven economic times.

Yep, they no longer have to offer low prices to get you in the door. As the only option in town now they can do what they want.

So glad I already have sets of quality old USA tools over the past decade from various sources. New purchases are probably gonna get thin!