How to Stay Ahead of Rising Material Costs
Updated: Aug 26, 2021
A global pandemic, shortage of workers, raw material shortfalls, shipping delays, and myriad other global factors have led to increased prices for products the world over in 2021. The overseas material and shipping markets are no exception, and price fluctuations are not new to our current situation—they happen. Getting ahead of the pricing game requires understanding possible changes in the market, production seasons, and many external factors. Here are a couple of ideas to help you stay ahead of rising costs.
Quote Your Brainstorms
Great product ideas can ultimately drive the growth of your brand, but so many great ideas never come to fruition because people are overwhelmed by the final price tag. So make finances a part of your brainstorming process. Make sure you understand the full picture of the production and material costs along with any potential additions you may need so you fully grasp the sustainability of that product in your shop—even with potential ups and downs in material costs.
Understanding all of this from the start can prepare you for any fluctuations you may face and give you time to thoroughly review and edit a potential product before making the commitment to manufacturing it. You’ll have the opportunity to make any adjustments necessary to assure it fits and remains within your budget.
The requested arrival date for your product will definitely determine the start time, but it is not the only factor. One of the greatest considerations for both price and timeline (which can affect price itself) is production season. Peak production season can push prices and timelines, so maximizing your budget and staying ahead of the pricing curve can mean planning early to avoid the hottest production windows.
Overseas printing peak season falls roughly between May to mid-July as printers and manufacturers work to accommodate the U.S. holiday season. Plants will be busy, materials will be more scarce, and ports will be extremely full, which can influence an increase in overall pricing. With this in mind, potentially starting earlier to avoid inflated cost and earlier arrival dates can be a better move for your business.
While we don’t really have any control over pandemics and shipping delays, pre-planning and wise followthrough can serve to keep your costs manageable and prepare you to overcome any pricing shifts that may come your way.
Partner with CōDRA to create the right product and let us help you find the right pricing for your products so you can focus on growing your business. Contact us here.