Price Gouging

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ltjc160

New Member
Aug 21, 2008
4
Ma
Here we go folks. Quadafire has just lit the fuse. I am from Seekonk Ma. and purchased a Quadrafire stove from my local dealer in June (God only knows how many were bought after that). The dealer was great to work with and have sold a ton of these along with other manufactures stoves. I was first told that the stove would be in July then August then installed in September. I received a call today telling me that the stove would not be in untill after Thanksgiving and that Quadrafire had increase the price (for my stove ) by $395. The store I bought it from is calling all the people that ordered stoves and telling them this. I was not the first person to show up and complain. I do believe Quadrafire is price gouging here's why. My dealer had made a ton of money making these deals and have no reason to do this they have infact told me that they will eat the price. What Quadrafire is doing is hoping that all the orders made in June and July will be cancelled so that they can sell them for the higher price. I feel bad for my dealer because they are the ones who will be taking the brunt of the abuse from customers. I will be contacting the MA Attorney Generals office to report this rip off. Stay tuned, it is only going to get better.
 
Sounds like Harman has a twin in the business. I'm a bit confused though. If your dealer, who sounds very reputable, is going to eat the cost increase, why did he call you and tell you there's a cost increase? Additionally, and I'm not a member of ABA, if you have a contract with your dealer I don't really think he can legally say my supplier is charging me more so I'll have to charge you more. From the dealer's prospective , if he has a contract with Quadafire for a specific order at a specific price I truly believe they must honor it. Something smells rotten to me. Good luck.
 
And my vc dw dealer delayed me 2 weeks and . told me they were not in stock ,had to order , 200.00 less is my stove that bad .
 
Didn't say if you had a written order/deposit ? I would think if you had those- the dealer could not retroactivily raise the price.
Not to make you nervious but... I wonder- If you can't get a stove in 90 days of order....are you really going to even get one this year ???

Sorry- Did that really come out of my fingers ???
 
What they told me was that Quadrafire cancelled there order from June and July (because they could not supply them) then quadrafire took the order except the price went up. I calculated the cost increase 14%. I think what is happening is that my dealer is trying to get the customers to eat the cost because he is now not going to make any money on the stoves he sold in June and July. They also told me that all the companies are doing this. They all must be owned by big oil. I will keep you informed becasue I start making my calls tomorrow.

I did put half the cost down $2000. Again my dealer is willing to give me all my money back plus take back the 3tons of pellets. And of course will sell them at a higher price. This is what Quadrafire wants. Why sell to me if I can get 395 more from someone today.
 
Sure the cost increase is from the manufacturer, and not just the dealer trying to creatively get rid of some lower price commitments on his own?
 
Yup...sounds like price gouging to me. Buy an Englander.
 
Supply and demand $40
Fuel surcharge for shipping $50
Free enterprise $75
Worker overtime costs $100
Steel price increases $130
= $395


Being prepared by buying a stove many years ago when oil prices started increasing drastically! PRICELESS

Perfect storm conditions is all I can say.
 
Since Harman and Quad are both owned by the same company (Hearth and Home Tech)I wonder if its H and H calling the shots on this one.
 
Not a stove, but the invoice/sales receipt from a recent order from an appliance outlet (in this case, an island range vent hood, but it doesn't matter). In the box on the bottom left corner, where the customer has to initial, it says, "All products not delivered within 120 days of order date will be adjusted to current prices." This is referring to products not delivered to the dealer from the manufacturer. I can only assume that such a disclaimer is there to protect the dealer against factory backlogs/price increases because of having to increase production (more shifts, more costly raw materials, whatever) to meet the demand for their product. If I was a retail dealer operating on slim margins, I'd forewarn my customers that these things happen, and that they should be prepared to cope with it (pay for it). Just seems like real life to me, I'm not sure anyone's trying to "gouge" anyone. Rick
 
Sounds good but Quadrafire told them when they would be delivered and on time. They should eat the cost. If they could not deliver why not let us know in July or earlier in August. You can bet it's price Gouging. Why sell to me when they can get a better price from someone who orders now. I can guaretee that someone who ordered with the new price will get it before me.
 
do what i just did :) buy a quality used stove ;-) sock it to the stove makers like they are doing to you.
 
There we go again!!
It's all just (*&^*&
If the dealer places an order to the manufacturer and if it is accepted by the manufacturer there is no retro-active price increase.
Period pasta!!!!!!!
Except the Dealer is so stupid (sorry the expression) to accept it. Never heard about it and I personally don't believe it.
For me that is a sign to walk and say goodbye to the Dealer and find another one.
Yes there are price increases.
The problem we have here is that the manufacturer is going into overdrive to manufacture more stoves due to higher demand, which means in the short term his profit margins are going lower as he has to buy his products on a short term basis and his raw products are having a higher price too. No Choice in many cases to negotiate or select a cheaper raw product.
That's why you see that a lot of wood pellet stove products have increases in their prices. And last not least a higher demand or a so called shortage, just calls for price increases.
I walked out on several Dealers who tried to play that Game with me. And I still found a reputable Dealer with a good and fair price without having to heckle for a discount.
 
Originally I was going to purchase a Hearthstone Heritage. My local dealer said its on backorder and should be in sometime late sept or early oct. I was not comfortable with that so I started looking at some other stoves. I wound up purchasing a Woodstock Fireview instead. It should be delivered sometime next week. Now I won't have to guess if my stove would come in before the burning season starts.
 
I'm so glad I bought and installed my Oslo last month. 4.5 cords split and seasoned, a triaxle load waiting to be cut, over two tons of coal. I just wish I wasn't so busy so I could enjoy the thought of it all.

The dealer shouldn't have even mentioned the price increase. You have a agreement with money down.
 
Very much so it is price gouging and it is their intention to delay your order so you might cancel it. I hope you get your stove by November but I still have my doubts. I am also not sure of the length of the time delay of delivery before the attorney general takes action. As for who eats the price increase I would think it would be an issue between the dealer and the manufacturer with the manufacturer at fault for not honoring a contract and using negligent business practices failing to properly hedge their steel costs especially if they maintained a lower price longer than they should have (I know steel prices have risen sharply as early as February).

BTW it is over a very same issue is why I now burn wood. (A propane dealer reneging on a locked contract for delivery of 1000 gals of propane).
 
I wouldn't be so certain that you have a reputable dealer. If you have a placed order with $2,000 down, they have absolutely no business telling you there was a $395 increase in the cost of the stove. If anyone is gouging, it sounds like your dealer is, not the manufacturer. I have worked for numerous mfg companies, and unfortunately many are slow to react to market conditions. Rarely have I seen a mfg organization so put together that they would come up with a plan to attempt to get the end customer to cancel their order. What do they care, it is the dealer that pays them. If the dealer did a poor job of placing orders, or does not have the cobbles to stand up to the mfg'r and make them hold to agreed pricing on orders, the dealer has all the incentive in the world to try to get more money out of you. And if you cancel your order, it is the dealer than benefits by being able to sell that stove to someone else for $395 more.

There is definately something fishy going on here, but I wouldn't be so quick to dismiss your dealer as an innocent bystander.
 
LEES WOOD-CO said:
Supply and demand $40
Fuel surcharge for shipping $50
Free enterprise $75
Worker overtime costs $100
Steel price increases $130
= $395


Being prepared by buying a stove many years ago when oil prices started increasing drastically! PRICELESS

Perfect storm conditions is all I can say.

You nailed it. I deal with steel all day long. 10-15% increases every month plus surcharges pushing 30% have made pricing retarted. Fuel surcharges from freight carriers average 20% on top of the freight charges. We have had to do the same thing with our pricing. No one is gouging you, its the reality of the market, except the Free Enterprise fee of $75, your on your own with that one.
 
Sounds like price gouging to me also. At the least I would tell him to take a long hike file a formal complaint with the BBB and State Atty Generals Office too. You could if you absolutely had to have that stove from that guy give him the option of making good OR you do the above. I just hate extortionists and bullies myself and so should you. Last I heard in spite of everyone wanting one lately there are plenty out there unlike a few years back. And oh one last thing use the bad news travels fast approach. Tell the POS that you are going to make sure every one you come across for evermore will know that a chiseling thief he is. Then follow up on it . He can't much sue you for slandering him when you are telling the truth now can he? That might just be the perfect time to TELL him his choices. Real simple no crap involved: Honor his commitment and you demand it all in writing signed NOW in front of a witness you bring along naturally or you will do all of the above with great personal pleasure. You might as well give him an out if you can since its really in your better interest just to get it done and over with than have to go looking around for another in spite of the problems with your current relationship. Better the corrot before the stick I guess if you can help it. BTW I don't follow the steel market but I have heard that steel while it has its ups and downs lately is way down from its big peak sometime around June. People were stealing ancient farm equipment that had been sitting for decades back then though I haven't heard of any such incidents recently.
 
I'm not going to defend the retailer here, I think it should have been handled on a more professional level. I will say that I think the below comment is b.s. stated by someone unfamiliar with the current steel industry.

"There we go again!!
It’s all just (*&^*&
If the dealer places an order to the manufacturer and if it is accepted by the manufacturer there is no retro-active price increase.
Period pasta!!!!!!! B.S. alarm sounding - look at a quotation from a steel supplier and you'll see a line that states prices will reflect applicable material surcharges in effect at the time of shipment.
Except the Dealer is so stupid (sorry the expression) to accept it. Never heard about it and I personally don’t believe it. Talk to someone in the steel buying business, you'll change your mind.For me that is a sign to walk and say goodbye to the Dealer and find another one. I wouldn't blame anyone for walking away, $395 seems extreme.
Yes there are price increases.
The problem we have here is that the manufacturer is going into overdrive to manufacture more stoves due to higher demand, which means in the short term his profit margins are going lower as he has to buy his products on a short term basis and his raw products are having a higher price too. No Choice in many cases to negotiate or select a cheaper raw product.
That’s why you see that a lot of wood pellet stove products have increases in their prices. And last not least a higher demand or a so called shortage, just calls for price increases.
I walked out on several Dealers who tried to play that Game with me. And I still found a reputable Dealer with a good and fair price without having to heckle for a discount. "


There appears to be some gouging going on here but the steel market is likely the biggest issue at hand. Some of our raw steel material has shot up 107% this year. The market is ugly and as they say, $hit rolls down hill. Good luck with your new stove.
 
How is this price gouging on the part of the manufacturer? Your deal is with the DEALER. Unless you struck some weird "cost plus" deal with the dealer- they gave you a price they should honor.

In fact- I agree with whoever asked why the heck they told you about the price increase if they said they would eat the cost difference?? Just trying to put you on a guilt trip? Who is your dealer- my mother in law??
 
Adios Pantalones said:
Just trying to put you on a guilt trip? Who is your dealer- my mother in law??

Thanks for the good laugh, AP. That is great, only I read it, "Who is your dealer-The Dude's mom?"
 
boostnut said:
I'm not going to defend the retailer here, I think it should have been handled on a more professional level. I will say that I think the below comment is b.s. stated by someone unfamiliar with the current steel industry.

"There we go again!!
It’s all just (*&^*&
If the dealer places an order to the manufacturer and if it is accepted by the manufacturer there is no retro-active price increase.
Period pasta!!!!!!! B.S. alarm sounding - look at a quotation from a steel supplier and you'll see a line that states prices will reflect applicable material surcharges in effect at the time of shipment.
Except the Dealer is so stupid (sorry the expression) to accept it. Never heard about it and I personally don’t believe it. Talk to someone in the steel buying business, you'll change your mind.For me that is a sign to walk and say goodbye to the Dealer and find another one. I wouldn't blame anyone for walking away, $395 seems extreme.
Yes there are price increases.
The problem we have here is that the manufacturer is going into overdrive to manufacture more stoves due to higher demand, which means in the short term his profit margins are going lower as he has to buy his products on a short term basis and his raw products are having a higher price too. No Choice in many cases to negotiate or select a cheaper raw product.
That’s why you see that a lot of wood pellet stove products have increases in their prices. And last not least a higher demand or a so called shortage, just calls for price increases.
I walked out on several Dealers who tried to play that Game with me. And I still found a reputable Dealer with a good and fair price without having to heckle for a discount. "


There appears to be some gouging going on here but the steel market is likely the biggest issue at hand. Some of our raw steel material has shot up 107% this year. The market is ugly and as they say, $hit rolls down hill. Good luck with your new stove.

We have our own fab shop and buy alot of structural steel. When I call around to get prices I get a quote # and it is only good till the end of the day. Next day it may be more may be less.

Truck bodies which we buy alot of have increased 25%+ since this last winter.
Labor rates have gone up.
Facility costs have gone up.
Insurance goes up daily.

Fact of life: ALL costs are going up and FAST! Bite the bullet and pay the increase because tommorrow it may be a $695 increase. It's an item that will save you $10's of thousands over it's lifetime considering todays and future high energy costs.

I don't think going to the BBB or Attorney General is going to solve much . I'm sure they're already aware of or have investigated the situation. And I'm 100% sure they're aware of increased manufacturing, raw material, and transportation costs.

A stove is for the most part is a once a lifetime puschase.
In the last year I have seen many items in the grocery store increase 50%-100% and these are things that we buy once or twice a week and yet no one is going to the bbb or attorney generals office over it. I'll bet these increases have added more than $395/year to your grocery bill. So $395 increase over the life of a stove is not much considering the savings it provides.

I'll say it again.
This year has seen "Perfect Storm" conditions for high prices on anything "alternative" energy related.
I honestly don't think there is any gouging going on. If there was, I think they would be trying for more than $395.
 
Prices seem to change usually once or twice a season with these companies. I have seen prices go up even 3 times this season with one brand. If the dealer has to pay the higher price for the stove, their going to turn around and charge the new price. The loop hole is, if as the consumer you do not want to pay the higher price, you can always take your money back. Dealers have lists of people waiting for these stoves.
 
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