Window prices after December 31st?

tschurinOctober 8, 2010

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Hoping someone who is knowledgeable about the window industry and window pricing will reply to the following questions: Most consumers would hope that window prices would go down after the expiration of the energy tax credit but will they? If so, by what percentage?

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skydawggy

I see no reason why they would go up or down. What makes you think either would happen?

    Bookmark   October 9, 2010 at 12:40AM
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tschurin

Presumably there has been a lot of demand for windows from consumers trying to take advantage of the energy tax credit. Sometimes, in a situation like that, manufacturers will take advantage of the strong demand to raise prices, or to maintain prices that would otherwise go down [due to the poor economic situation, for instance]. In roofing, for instance, some manufacturers are charging a substantial premium for their line of shingles that qualify for the energy tax credit. Some of the higher price could be justified; for instance, having to pay for overtime, higher costs for certain materials that are in high demand etc.. The question is, what happens when the demand subsides, which it almost certainly will after December 31st.

    Bookmark   October 9, 2010 at 3:50AM
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skydawggy

I'm not aware of any manufacturer raising their prices abnormally after the tax credits were initiated so I don't understand your reasoning.

Pricing has only partially to do with material costs. It also has to do with labor, insurance, fuel, taxes etc. If you think labor costs should go down then you haven't met my installers. The biggest issue affecting pricing right now has a lot to do with Social changes trying to be enacted by politicians.

I can assure you that businesses aren't going to take less profit if we get hit with a tax increase for health care etc. We are all going to just pass it on to the consumer which will result in higher prices. Businesses are much more organized than most think. Cetainly more than the Politicians give us credit for. We have trade organizations that we belong to and we communicate pretty well with each other. I haven't heard anyone suggesting prices be cut. That's the surest way to end up bankrupt. When you aren't making enough profit to reinvest in finding your next customer, then you go out of business. Simple economics.

    Bookmark   October 9, 2010 at 4:44PM
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PRO
Windows on Washington

Prices may in fact go up as Skydawggy has indicated with the increased costs of business, insurance, lead safe practices, and health insurance.

I don't even know what our taxes will be this year yet?

    Bookmark   October 9, 2010 at 5:07PM
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tschurin

Skydawggy

Thanks for your reply. My reasoning is just to inquire whether supply/demand will affect the prices of windows. Nothing too original or controversial there. I wonâÂÂt get into a point-by-point response to your observations; IâÂÂll just accept at face value your opinion that prices wonâÂÂt go down after December 31st, which is useful information to me.

    Bookmark   October 9, 2010 at 5:19PM
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cupofkindness

Will the tax credit be renewed for 2011?

    Bookmark   December 5, 2010 at 5:31PM
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eastbay10

At this point it doesn't look like it. It may take on a different form like part of a weatherization package.

    Bookmark   December 5, 2010 at 10:36PM
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skydawggy

The only program that might offer some incentive would be the R-5 bulk purchase program. I believe the minimum purchase at this stage is 15 windows but they must be triple pane to qualify.

    Bookmark   December 6, 2010 at 8:28AM
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cupofkindness

Skydawggy:

Do you have any other information about this program? Also, sorry to sound ignorant, but what are the advantages to triple-pane? I see more money to spend, more glass to break, and more ways for the window to fail over time. Sorry to sound pessimistic, perhaps these are the best thing since sliced bread. Thank you!

    Bookmark   December 6, 2010 at 12:18PM
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jocobe

Last Friday Andersen raised their prices an average of 3%, across their product line. Their double-hung Permashield Narrolines were increased by 8%.

    Bookmark   December 6, 2010 at 2:20PM
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skydawggy

The R-5 program requires that replacement windows have a U-factor below .22 to qualify. In the past the biggest disavantage to triple pane was the cost. This program seeks to reduce the cost by increasing the volume.

More glass to break? How often do you have your window glass broken?

There's nothing I've ever read, other than someone repeating something someone else said, that would indicate that triple pane glass has a higher seal failure rate than double pane. Do you have some test results I'm unaware of? Besides that manufacturers warrant the glass seal on DP the same as they do on TP glass, so why are you worried about it? Don't you think if seal failures on TP were higher that you wouldn't get the same warranty?

Here is a link that might be useful: R-5 Window program

    Bookmark   December 6, 2010 at 7:08PM
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