Football season is here! It’s the most wonderful time of the year!
I hope your football team is doing well. My team, Iowa Hawkeyes, aren’t quite living up to expectations just yet. Hopefully they will get things figured out soon!
We heard some good news from the Federal Reserve a couple weeks ago when they dropped interest rates by .5%. I’m hoping for another drop before Christmas, but the recent jobs report might give the Federal Reserve some pause in dropping rates again this year. I’m hearing from dealers and end users alike that interest rates are just too high to decide to purchase equipment right now. It’s a big part of the sales slowdown that we’re all experiencing.
Don’t forget to take advantage of the leasing program offered through our financing partner, Amur Equipment Finance. Fred Madkour and the team at Amur have come up with some very advantageous programs for leasing options. Contact your SmithCo sales representative or contact Fred directly for more information.
Well, we are only 4 weeks away from the General Election. As I’m sure you are, I’m looking forward to getting past this election. Every General Election cycle seems to be the same…people are uncertain, so they hold back. In previous election cycles, SmithCo has retracted when things slowed down. This year, we’re doing the opposite. I’m looking for a good 2025, so we are actually increasing production during this slow sales period. Our goal is to have as many trailers on the ground as possible in “stock” condition. It’s a risk that we’re taking, but we believe things are going to improve and we want to be ready for your orders!
Now for some good news! If you attended our Dealer Conference back in the spring, you may remember that we showed you a new prototype king pin design. This new design has been testing for quite some time with tremendous results. I’m pleased to announce that we will begin full production of the new king pin installation this winter. The first trailers receiving this new removable king pin as standard equipment will start to roll off the assembly line in mid-December 2024. We are very excited to introduce this patent pending design to the market. It’s one more example of SmithCo’s commitment to continuous improvement!
Finally, it has been more than 18 months since SmithCo increased trailer pricing. We’ve been able to hold pricing firm for this time period, mainly due to fairly level material costs. While we are not seeing any increase in costs associated with steel in the next 6-8 months, we are still receiving cost increase notices for other components. We are also seeing very large increases to our insurance (health, property, product liability, etc.) and property tax rates. As you are keenly aware, the cost of doing business never goes down. Considering the cost increases we are experiencing, SmithCo is planning to implement a 1% price increase on most trailer models. This increase will go into effect for all orders received after December 31, 2024. Any trailer you order by December 31, 2024 will not have this 1% increase, regardless of when it is delivered.
I greatly appreciate your partnership in selling SmithCo side dump trailers. It is a privilege and honor for us to work with each and every one of you. If you need anything, please don’t hesitate to contact us!
Best Regards,
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