because raw materials, labor, debt service (currency exchange), are increasing in price and volume is flat or going down.

Another reason is that prices were not over inflated like housing and classic cars so there is less wiggle room.

Less volume = less demand. Less demand should with the same production should equal lower pricing.
My guess is that they have cut back production, just to create less inventory and drive prices up.

Do you think that because many of the kitchen appliances are now "Fair Traded)or msrp, has anything to do with "Sticky" or even increasing prices?
When I bought my Appliances, 2005-2006 none were fair traded cept the Miele. Electrolux wasn't at that time, or Jenn-air, so an appliance dealer would "deal" trying to get you to buy everything from them.
Now on the Majority of, (and particularly the "High end stuff") they can't deal.

Gary

Appliances have not been in a bubble unlike home prices and classic cars. And have you checked the price of high-grade stainless lately?

Having just finished a second remodel after a five-year hiatus, I found prices have gone up at least 30%. I paid just under $1200 for a d/w in 84 -- same model today was $1800 (same dealer). Sink faucet I used in 84 in specialized finish had doubled in price. When I shopped faucets all those in the mid-range had jumped into the ozone. Some models simply not available at any price.

Do appliances go on sale at any particular time of the year or is it just "all" the time? I'm watching the price of induction ranges. I want to strike when the price is low but how do I know when it's in a sale cycle?

There seems to be more induction ranges coming into the market place. As more come aboard, competition between brands might do you some favors.
Prices of just the Induction cooktops have dropped some as more companies offer them or at least new ones come out with lower prices.

Gary

As promised... :)

IMHO, there are several reasons why appliance prices continue to rise and in some cases, they are not so much rising as adjusting for inflation and perhaps improved standard of living.

Prosumer products in any market tend to carry a higher price tag due to lower demand so less volume efficiencies in cogs and manufacturing. There's also less price pressure since those that are looking for the higher-end products tend to be willing to pay a bit more for them. In extreme cases, people will buy something because they cost more which makes those items identifiable with a certain status. The latter case usually needs to combine identity (brand/marketing/etc) with higher cost.

Now aside from that, why are prices rising when technology prices usually drop over time? Well, large appliances have an expected lifespan of over 10 years compared to computers or TVs and such which has an average life expectancy of 18mo to no more than 5 years. That produces a different pricing model and in many ways makes consumers more willing to pay a bit more since they expect to own it for a while. Add that to the fact that most large appliance replacements are disruptive, that makes people tend to err on the side of caution which is buy more than they think they need so they don't regret it later.

Now, the question is.. Are prices really going up once adjusted for inflation and other improvements? A 30" gas range can be had for under $400. This range is similar to what my parents have at their house from 25 years ago. I'm sure they would have paid more even back then for the same unit. So comparing near identical features and adjusting for inflation, prices have come down over time.

Rococogurl, give some numbers which is very helpful in this type of discussion. Let's take those and adjust for inflation. At an average annual inflation of 3% (based on well established historical info for the last century) the $1200 DW in 1984 would cost $2,512.53 today. So in effect, the price has decreased since the value of the dollar has decreased in that same time.

I can year the objections now. :) "But I priced out my Wolf range 10 years ago and it's doubled in price now." Well it probably hasn't doubled but for sake of argument, let's say it outpaced inflation in that time. In this case we have to look at the price affect of an emerging market space. Remember that 10-15 years ago, the prosumer appliance market was in it's infancy. Prior to that, people basically bought restaurant ranges to put in their homes if they wanted the extra performance. Restaurant ranges back then (and even many today) are nothing more than a chassis and gas plumbing. They use pilots which is largely abandoned in the home market for instance. You can buy a 36" Vulcan 6 burner range *today* for well under $2000 but not many people would be happy with one in their home since it lacks many of the features people want today.

When Viking came into the marketplace, they in effect defined a whole new market of built for the home high-end appliance. Wolf's residential offering back then was not much more than their commercial range with the burners tuned down to meet UL certification for home use. When new markets like this start to gain traction, there's usually a period where prices go up. The reason is two fold. First, manufacturers need to attract new consumers which might balk at a 4x jump in price but will accept a 2x jump in price for the better performance. Second, as I mentioned above, initial products in the area (from established companies like Wolf) is usually nothing more than their commercial products so costs starts out low. Once they start to redesign for the home and create a more fractured product line, manufacturing volumes goes down so cost goes up. Redesign costs and new material costs also get built in. Couple that with the additional marketing required, glossy brochures, dealer incentives, mass media marketing, etc. they eventually need to raise prices in order to cover those increasing costs. These efforts do work however by convincing more people that there is value in buying these items. The result is more people are willing to pay higher prices for the more refined finish and features. In fact, people start to demand these refinements and are, for the most part, willing to pay for them. This trend does tend to level out so I don't think you'll see prices going up faster than inflation for the next 10 years.

Finally I'll say this, Gary is exactly correct. The reason prices are what they are is because people are willing to pay for it. This is the foundation of a free economy. But also realize that if nobody is willing to pay enough for manufacturers to make money off of this market, then we'd all be living on hotpoint ranges right now. I just know I'm gonna get flamed by the zealous hotpoint people. :)

Ok, my fingers need a rest now. ;)

Amcook, that's interesting about the life of cmptrs and TV's. I sure beat those odds. The cmptr that i'm on is probably 6 or 7 years old, lost track, and that 40 inch sharp TV that I bought (the one you and that chef Fried me on LOL) well that replaced a 36 inch Mitsubishi CRT TV that still worked great--I gave it to the floor installers.
You can probably tell by my name (59 Dodge), that I keep things a long time, Wife 43 years and I still have the 1st new car I bought.
Anyway thanks for the input and ya made my day, at least with TV's and cmptrs.

Gary

themisn hit the nail on the head. Why would appliance companies continue to produce the same amount of inventory with less customers? I'm sure they aren't looking for bailouts, so the likely cut the production which is causing the prices to go up, and increases their profits a little bit as well, to counter-balance the expected drop in sales during expected during the end of the retail year, and their most profitable quarter.

Electrolux should be pricing there stuff at give away prices. They just pulled out of Webster City, Iowa and headed to Mexico. Remember Newton, Iowa? Maytag?