Higher prices for bearings and other parts

A

amphiguru

Guest
Hi Everyone,

I know how Gord feels . . . we too have been hammered by fuel costs,
exchange rate differences, etc. For example, when gas hit $3.00-
$3.50 a gallon, we raised our freight charge from 7% to 8% to cover
the UPS surcharge. Meanwhile gas has dropped down to $2.00-$2.50 a
gallon. So, we dropped our freight charge back to 7%. (Here's a
tip for all of us. The price of gas will fall below $2.00/gallon in
some areas soon.)

As for changing parts prices (usually higher prices), all of our
suppliers are on notice to contact us immediately before higher
prices. So, we can order at the old prices. Also, if they plan to
discontinue an Amphicar part, they are to contact us so we can place
one last large order.

Here are specific examples. We were informed the propeller bearings
were going up. We placed a large order, and here is the results:

3-19-05 Propeller bearing $41.79 (old) $19.90 (new)

The OEM engine valve supplier told us the intake and exhaust valves
would no longer be manufactured. We placed a "20 year inventory"
order, and prices have dropped as follows:

1-02-59H Intake valve $15.49 (old) $8.95 (new)
1-02-60H Exhaust valve $17.64 (old) $9.50 (new)

Gord Souter recently placed a large order for the valves. You can,
too. There is no minimum order quantity. If you're participating
in any of our restoration discounts, you get the additional
discount. For example, the best deal gives you the valves at $7.60
and $8.07 respectively.

I think you see the picture. Our biggest problem is not selling
amphicar parts, but buying them. For example, the glove box is
listed at over $245.00 each. This a totally "unreal" price.
However, it does help out the owner who doesn't have a glove box.
We place a phone call to Germany, Virginia, etc., and say, "You know
that new glove box you've had for 15 years? Well, I've got a man
who desperately needs one. Name your price." So part by part, we
find homes for these temporarily rare parts.

Here's our goal. It is to buy parts at low enough prices (so we can
sell them low enough) that EVERY OWNER will replace his existing
part with a new one. For example, we don't want to sell a few front
bumpers to owners without them. We want owners to buy them who have
a few minor nicks, dents, or pits. The Amphicar parts business
could never survive on selling only to Amphicar full restorations.
So getting back to the glove box, the "get real" price has to be
$25.00 to $40.00 each. Gord will tell you the same thing. They
don't sell well and are a pain to install. That's why we expect our
lighted glove box to sell okay, but not "off the shelf".

The future . . . again, the next time you see an "unreal" price in
our catalog, don't assume it will stay that way forever. It is not
an invitation to remanufacture low quantities and sell them to
owners at prices slightly below our "unreal" prices. Our goal is
parts at commercial prices, so everyone can buy.

Now, here's a part I can use your help getting at much lower
cost. . . shock absorbers. Yes, we have a good product, but we need
a supplier who can supply a safe, reliable brand name in large
quantities at low prices. We have already contacted Germany and the
answer is always the same, "Ya, Herr Gordon, mit 1000 pcs. you get a
good preis." That's 1000 pcs. per each type with springs. Somebody
out there needs to be a hero and get shocks at "get real" prices.
Remember, it's got to be safe and reliable as well.

Before I close this long letter, we've got two new items coming in:
radiator mounts and choke cables.

Best to you all,

Hugh
 
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