Econoco to Hold Prices! Order Now!

We are pleased to announce that we will hold all current prices for the time being in this very unstable market. The weak dollar and raw material shortages in Asia have caused prices to rise at an alarming rate across all industries including ours. Econoco's deep inventories will allow us to sell at today's price so you are encouraged to stock up now.

Every factory in Asia, every importer, every distributor and every end user are being affected by significant changes that are occurring now. All you have to do is look at the newspapers in order to realize that current economic conditions in the U.S. are having an adverse effect on virtually all industries dependant upon imported products. Just check out the latest price you paid at the gas pump.

Additional articles related to the downturn in the retail industry are appearing in the paper every day. There has been a surge of retail bankruptcies in recent months including companies like Sharper Image, Fortunoff's, Levitz Furniture and many more. Other companies having major financial difficulties include Goody's, Wet Seal, Pac Sun and Talbots. Still others that include some of the largest well-known department store chains have seen their stock prices plummet. While the fate of these chains may not affect wholesalers directly, there is a trickle-down effect. Consumers have less disposable income and that means less spending in the stores.

Unfortunately we believe that things will get worse before they get better. There are a number of factors that are responsible for unprecedented price increases that we and our competitors have received over the past few weeks. Factors include:

1. Continued Weakening of the Dollar-- Since May of 2007, the dollar has lost 11.4% of its value relative to the Chinese RMB. In fact, the buying power of the dollar has decreased over 4% just since the beginning of the year.

2. Increase in Ocean Freight Rates--all importers in the US are receiving significant increases by the shipping companies. The four-figure increases are a huge percentage of the price of importing a single 40 foot container. The price hikes are a direct result of the price of fuel.

3. Rising Cost of Raw Material--Most of the goods that we sell are made of steel or plastic. Right now China is rushing to complete the largest national infrastructure development program in the history of the world in anticipation of the Beijing Summer Olympics only several months away. This has diverted much of the sale of steel from the private sector to the Chinese government. Of course the limited supply and the large demand has been forcing prices up. Acrylic on the other hand is ultimately based on the price of oil and we all know what's happening there.

4. Government Subsidy Elimination--The Chinese government lifted a longstanding 7% subsidy on factories exporting goods.

5. Inflation--China as well as other developing countries are being faced with unprecented inflation. The cost of labor will continue to rise as more and more people's standard of living increases. Younger workers are not satisfied working in difficult conditions in manufacturing and rather work in front of a computer rather than an assembly line.



In the 50 years Econoco has been importing from Asia, we have never seen this before. It is difficult to predict what may happen. Some say that once the Olympics are over, steel prices will come down. Others believe that imported oil prices are being kept artificially high which may help the democrats in the upcoming election in November and will drop significantly sometime in 2009. Either way, we will leave it to the economists and the hedge fund managers to predict the future.

Sellutions by Econoco Offers Custom Fixture Design and Production

Econoco's efforts to create unique fixturing concepts or value engineering existing designs for clients is satisfying today's retail chains desire to create their own branded look. Sellutions currently works with some of the country's most exclusive department stores and vendor shops. Parent company Econoco continues to successfully support their large network of display and fixture distributors who market through catalogs, storefronts and the internet with a large array of stock products.

Econoco Offers the Best Value

And Econoco provides the most value for your money. 3000 inventoried products, 82 years of experience, largest inventory in the US, continuous flow of newly designed products are just a few of the advantages of being an Econoco distributor.

While we recognize the importance of value, we see the continuing demand for low prices. Econoco management has made the pledge not to sacrifice quality for a lower price. Asian factories and US fixture importers have continually cheapened products by reducing steel thickness, use cheaper welding, inferior chrome and inconsistent quality. We firmly believe that in the long run, these companies will eventually go out of business because customers will realize that this trend cannot continue. Econoco will not gravitate to the lowest common denominator of low-cost, "poor boy" operations around the country. 82 years of serving the retail industry says it all.


Regardless of increases in the price of imported steel and plastics from China, importers are continuing the trend of lowering prices and accepting the shrinking profit margins in an effort to remain competitive. The larger wholesalers who maintain inventory and who are financially strong have led the way in dealing with Asian factories cutting out the traditional importer from the supply chain.

"Price is price but value is the total experience" writes Len Berry, Professor of Retailing Studies at Texas A&M. In an industry dominated by price we strive to provide value. We define value as the quality of benefits and services that accompanies a transaction.

This fact coupled with the significant increase in the number of small, low-cost Chinese factories looking to enter the store fixture market have added to the age-old issue of supply and demand. Demand for fixtures is down as there are 50% less independent retailers today than there was 20 years ago. This means that the traditional storefront distributor, catalog house and the newer internet sites are fighting for a bigger slice of a shrinking pie.

Small independent stores seem to be gravitating to the lowest common denominator like the use of low cost grid and outriggers for the wall instead of more attractive systems that may cost more but help a store obtain a more unique brand identity.

Econoco carries the largest inventories of store fixtures, visual displays including mannequins in the United States. Very often, an importer looking to gain market share advertises ultra-low prices but does not have stock. Many importers of fixturing have been reducing the quality of products by using thinner wire, inferior finishes, cheaper spot welds and lighter gauge steel. Econoco pledges not to cheapen the quality of its products in favor of lowering prices.

To insure product quality, Econoco has hired four QC supervisors to oversee manufacturing in the metal factory in China. The use of an independent team not affiliated with the factory assures that the merchandise shipped conforms to our specifications.