Will Prices Drop After The $1500 Expires?

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beer234
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Will Prices Drop After The $1500 Expires?

#1 Post by beer234 » Mon Sep 20, 2010 3:53 pm

When the $1500 tax credit expired do you think that window manufacturer's or those that sell/install will lower their prices to get those who cannot use the credit or those who missed the credit to purchase?

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HomeSealed
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Re: Will Prices Drop After The $1500 Expires?

#2 Post by HomeSealed » Mon Sep 20, 2010 4:55 pm

I can't speak for everyone, but our (meaning my company's) pricing is set based upon our expenses, profit margins, etc. The tax credit is something offered directly to consumers by the government and has no bearing whatsoever on pricing. The only way I'd see anybody's pricing going down is if consumer demand falls off a cliff. All indications are that this will not be the case.

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Re: Will Prices Drop After The $1500 Expires?

#3 Post by Skydawggy » Mon Sep 20, 2010 6:23 pm

HomeSealed wrote:I can't speak for everyone, but our (meaning my company's) pricing is set based upon our expenses, profit margins, etc. The tax credit is something offered directly to consumers by the government and has no bearing whatsoever on pricing. The only way I'd see anybody's pricing going down is if consumer demand falls off a cliff. All indications are that this will not be the case.

+1 I agree. Prices didn't go up when the tax credit became available. Pricing on windows by profitable companies don't shift when consumer incentives like tax credits come along. Pricing is based on the cost of doing business. Consumers were buying windows before there were tax credits, they will be buying them after they are gone. If anything, window prices may rise if demand drops off and manufacturers reduce their supply.

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Re: Will Prices Drop After The $1500 Expires?

#4 Post by SuperiorW&D » Mon Sep 20, 2010 8:36 pm

EcoStar Windows wrote:+1 I agree. Prices didn't go up when the tax credit became available.
Exactly. If we didn't raise our prices when the credit became available what is there to lower later?

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