chlorinatorpro

In The Industry
Feb 16, 2016
169
CA
I know I've beat a dead horse over the last couple of years but the raw material prices of SWG components keep on increasing. First it was Ruthenium skyrocketing, now it's Iridium and even the raw titanium plates themselves plus the cost of labor. Depending on what inventory levels manufacturers had some were able to hold off on price increases. Others had to respond by cutting the coating thicknesses on their plates without reducing prices (because how could the consumer possibly know?). Hayward just chose to cut it's warranty from three years to one year as warranties cost money. . At least that is what I'm led to believe. This is a very competitive business and customer service goes a long, long way which is our advantage. Bottom line is that salt cell pricing is going up and inflation is here in the pool supply business.
 
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I appreciate the perspective on the industry and your participation. It makes a lot of sense.
 
I agree but where does it stop for everything... In 5 or 10 years how can someone afford a 60k SWG that costs $2000 or $2500 dollars and it only last a couple years... I guess when people stop buying them they will have to lower the price...

I still love mine and will probably pay for another one when it dies :)
 
Supply and demand. With precious metals it costs more and more these days to extract the material from the ground. Unless the demand dries up, which is unlikely, higher prices are here to stay , all things being equal.
 
Isn't it true that almost all those precious metals come from China? They could gouge us horribly. Or possibly withhold them?

Yes that is true. Most of the ruthenium goes to disk drive and capacitor manufacturers. South Africa and Russia are other supply countries. The gouging has already happened but could get worse. China desperately wants US dollars so they continue to sell to the US. They could corner the market if they really wanted to Tick us off (and try to supply their own population) but most Chinese aren't rich enough or have big enough homes to have all the luxuries that Americans can buy so they continue to sell to us .
 
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