Inflation

[Number_35]

So I was just enjoying a cup of tea from one of my favourite old cartoon mugs, and realized that inflation has made the joke funny on a different level.

It's a Herman mug, and there's a picture of a fellow picking up his car from a garage. He's reading the invoice and says, '$84 for labor! Wow, what an honor! Johnny Carson changed my plugs.'

I haven't had a vehicle in at a shop for awhile, but did have a couple of oil changes at the dealer while the powertrain warranty was still in effect on our newer car. So c. Fall '13, the shop rate, if I recall correctly, was something like $109/hr + 10% shop supplies + 13% tax. $84 would buy you less than 40 minutes.

I can change the plugs on both of my vehicles (a North-South V6, and a transverse 4) quite quickly (due to easy access, rather than great skilfulness on my part), but have worked on some where $84 would be a real bargain. I'm thinking of a friend's Windstar, and another friend's Aerostar. And, although I haven't worked on one yet, I hear that Ford's 5.4 with the disintegrating plugs that require the custom removal tool is a challenge. Dealer quotations are often N of $500.

The Herman mug is from 1983, so I guess that explains it.

 

[Joe_Power]

As the world turns......

 

[Timo325]

How things are getting more expensive these days..

 

[The Critic]

Most of our local dealers here are between $150 and $180/hr.

But most maintenance work is based on menu pricing.

 

[spk2000]

With oil and steel down so much why are other things coming down. car prices have stayed high as have appliances. And what about groceries - They said prices went up because fuel prices went up. Now fuel is down and prices have not yet followed. Do you just think they will be reaping the profits at the expense of everyone else?

 

[HTSS_TR]

Originally Posted By: spk2000
With oil and steel down so much why are other things coming down. car prices have stayed high as have appliances. And what about groceries - They said prices went up because fuel prices went up. Now fuel is down and prices have not yet followed. Do you just think they will be reaping the profits at the expense of everyone else?

Sure. The quarterly financial reports reflect that.

 

[cashmoney]

"They" are reaping profits at the expense of everyone else? WFT does that mean?

For most types of markets price is where demand meets supply. Unusual profits cannot exist in anything but the short term because normal competitive market pressures will soon bring prices to a level where profits are average for the industry. No boogeymen men no Illuminati are required...it is just as easy and as simple as that. Read some basic economics 101 - huge help to understanding how the modern world works.