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The Magic Cafe Forum Index » » Smooth as silk » » Fasten your seat belt --- Prices are going up! (0 Likes) Printer Friendly Version

Bob Sanders
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Magic Valley Ranch, Clanton, Alabama
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A few weeks ago I published a status report on silk, silk prices and availability. At that time the only negative item was that shipping schedules were slower due to oil prices. The supply is good.

This morning, my first memo from China modified that. Supplies are still good. However, the value of (demand for) the US dollar is not. Ultimately, all any nation's currency is good for are the things it will buy in that country. The demand for US dollars is falling again. Bluntly put, the world demand for goods made in the USA is falling and therefore the demand for US dollars is falling. The translation is that US dollars don't compete against other foreign currencies for silk in China as well they once did. Silk prices of China silk to Americans will be increasing.

The price of silk from India appears to be unchanged. Silk from India was already much cheaper than silk from China or Japan. However, the differences in quality made the primium on China silk very acceptable. That will not likely change.

The actual numbers are not available yet. But the message is simple. The price of the good China silk in US dollars is going up!

Bob Sanders
Magic By Sander
Bob Sanders

Magic By Sander / The Amazed Wiz

AmazedWiz@Yahoo.com
Rob Pond
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Regular user
Scott, OH
156 Posts

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Thanks for the warning. I will go ahead and get a few extra before this happens.
Rob Pond
Bob Sanders
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Grammar Supervisor
Magic Valley Ranch, Clanton, Alabama
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Today I got an update on actual importer price changes for China silk bought with US dollars. Silks are still a good deal but prepare for a 20% price increase. The new prices apply to May China exports. Large silks, printed silks and larger streamers are going up more than smaller pieces (under 18"). However, if you just think about it spoilage on larger sizes and prints is more expensive than on smaller pieces. Spoiled larger pieces can be made into small silk products. But often good hems cost more than the silk.

Trivia: The difference in 5 momme and 8 momme silk is still about $.20/sq. ft. Much less skill and sophisticated machinery are needed for sewing heaver silk. So the output is possibly even cheaper in 8 momme. But the really bad news is that 8 momme silk requires 160% of the load space of 5 momme silk. Or in other terms, you can put eight 5 momme silks in the same space as five 8 momme silks the same size. All the audience knows is that the production is very obviously smaller! Use silk as thin as your skill allows.

For art silks 6-8 momme protect the investment and are easier to decorate. If that level of opaqueness is required, you actually should consider using something else besides silk. It will be both cheaper and perhaps easier to work. Heavier silk doesn't float and flow the same anyway.

Dealers may be slow in repricing inventory until it is replaced. Old inventory may be available at old prices. (But silk doesn't get better with age either!) The scary part is that dealers who cannot afford a larger investment in silk inventory may reduce the amount silk they do make available. Consumer choices could be limited. Yet silk is really in good supply.

There is another way of looking at it too. The silk inventory that you have now should increase in value. You can't say that for cards!

Enjoy!

Bob Sanders
Magic By Sander
Bob Sanders

Magic By Sander / The Amazed Wiz

AmazedWiz@Yahoo.com
ricker
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Tampa, FL
914 Posts

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Silkmagic.biz is going to hold at current prices as long as possible. Get it while the gettin's good.
Steven True
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Bonney Lake,WA
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Maybe we should raise our prices on stuff sold to China....oh wait we don't sell to them. I think the only thing we sell them is the little printed tags that say "made in China"..just kidding there. Thanks for the update Bob. Just a sign of the times,things go up but we are willing to pay higher for the quality. Darn I as just about to send you an order for 150 silks Bob...Again just kidding. I have got to get a life folks. Again thanks Bob you are one of the people here on the Café' that we can really relying on for good info...Again just..oh forget it..Thanks Bob

Steven
ClintonMagus
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I don't really understand the whole "momme" thing. What weight, for example, are 6-foot P&A silks?

Amos McCormick
Things are more like they are today than they've ever been before...
hugmagic
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P&A silks are all 8 momme.

I generally tell guys if you have the space go for the heavier silk as it will wear better. For tight packs, I like 6 momme. 5 momme is needed for a couple of things (cane to silk for example) but I prefer the stronger color saturation that comes with the slightly thicker silk of 6 momme.

BTW, I just ordered in over 300 yards of silk to try and beat some of this increase. My supplier said that prices may come back down by September.

Richard
Richard E. Hughes, Hughes Magic Inc., 352 N. Prospect St., Ravenna, OH 44266 (330)296-4023
www.hughesmagic.com
email-hugmagic@raex.com
Write direct as I will be turning off my PM's.
Regan
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Oh, no....say it ain't so!

Bob, when is the price increase going to take effect? Or has it already?

Regan
Mister Mystery
Bob Sanders
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Grammar Supervisor
Magic Valley Ranch, Clanton, Alabama
20495 Posts

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Regan,

For the importers, the new prices went into effect in May. (Those goods arrive in June.) That translates into new prices July for dealers with fresh stock.

But that should also make what you have more valuable! How rich can you stand to be?

Bob
Bob Sanders

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Regan
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Rich? You're the man with all the silk! And I was needing to buy more, so now that will make me poor!

Regan
Mister Mystery
rmoraleta
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Philippines
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This is bad news! Some items including the Flash products have increased in price already.
Bob Sanders
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Magic Valley Ranch, Clanton, Alabama
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Well, the trend setters are on The Café again! This thread started in May. Now Dow Jones is beginning to report it. (If they were only magicians.)

Bob
Bob Sanders

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Michael Taggert
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Fredericksburg Virginia
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GLad I got some stock last weekend! You had mention new prices but 20% don't get me started on world politics. if only CNN would report on just how bad the import export situation realy is. BTW I love my new set of silks thanks Bob
Mike Taggert
Fredricksburg VA
Believe you then that I do strange things
Bob Sanders
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Grammar Supervisor
Magic Valley Ranch, Clanton, Alabama
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Hello Mike,

The folks in Bristol made some good decisions. A fundamental of magic is the one ahead method. It certainly worked for the guys in Bristol. I'm glad you are happy with your new silks. Thank you for the kind word.

I wonder if the folks at CNN know that I paid $1700 cash for my first new Volkswagon. (The radio was $110 of that.) Something has changed! But gas was less than $.30/gallon then and I was trying to save money! Did it work?

Load up a crew and come to SEAM in August. We'd like to see you again. James has a purple-headed bird that needs to meet you. He taught James everything he knows about magic including vanishing bird seed.

Bob Sanders
Magic By Sander
Bob Sanders

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AmazedWiz@Yahoo.com
Lynetta
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Las Vegas, NV
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People really don't seem to know what's coming. My egg bag silk has already gone up $4.00 more a yard than what I was paying for it this time last year. OUCH!!!

Lynetta
hugmagic
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Part of the problem is the hurricane Katrina which destroyed Mulberry leaves which feed the silk worms.

My suppliers tell me it may level out in a few months but the costs of labor for foreign hemming is not going to go back down.

Richard
Richard E. Hughes, Hughes Magic Inc., 352 N. Prospect St., Ravenna, OH 44266 (330)296-4023
www.hughesmagic.com
email-hugmagic@raex.com
Write direct as I will be turning off my PM's.
ricker
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Tampa, FL
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Lynnetta,

Yes, but the quality of your egg bags is second to none. When you produce quality, then people should be willing to pay for it. Smile

Outsource has caused a lot of this too. The quality of life in China and India is increasing, therefore they are using more energy, which made gas prices rise, which makes wages rise... ahhh you get the picture.

Rick
Bob Sanders
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Grammar Supervisor
Magic Valley Ranch, Clanton, Alabama
20495 Posts

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Last month when these posts started, remember how we expected gas prices to drop?

Bob
Bob Sanders

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AmazedWiz@Yahoo.com
hugmagic
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Drop to what $2.76 a gallon?

Richard
Richard E. Hughes, Hughes Magic Inc., 352 N. Prospect St., Ravenna, OH 44266 (330)296-4023
www.hughesmagic.com
email-hugmagic@raex.com
Write direct as I will be turning off my PM's.
Bob Sanders
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Grammar Supervisor
Magic Valley Ranch, Clanton, Alabama
20495 Posts

Profile of Bob Sanders
Richard,

At $2.76 a gallon here you would be in line forever! Try $2.91.

Bob
Bob Sanders

Magic By Sander / The Amazed Wiz

AmazedWiz@Yahoo.com
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