Supply and demand. It’s a simple concept that many of us learned about way back in high school economics, where the price of a widget is determined by the point at which the supply curve crosses the demand curve. While there are plenty of things that affect the price of goods or services, the simple explanation for rising prices stems from an increase in demand or a decrease in supply.
According to the American Metal Market newsletter on Monday, January 10, scrap prices have increased by as much as $75 per ton this month. This increase in scrap steel price has driven prices up in the consumer market.
If you’ll recall back in April, we posted a blog about the predicted rise in steel prices. Such is the case with the current steel market. Steel price fluctuation has a huge impact on the price of new and used storage equipment.
When it comes to planning a warehouse facility, such lofty price increases can mean big differences between project budget prices and actual price tags when a project commences.
So how do you counteract these price hikes? There are a few things you (and WE) can do to help:
- Talk to your sales representatives.
We have sales representatives on hand to help get you the correct information you need to make project and budgetary decisions for your operation. Give us a call at 866.474.2001.
- Inquire about used equipment.
With scrap and steel prices on the rise, you can get great bang for your buck by purchasing used equipment. We’ve got a great stock of quality used inventory in our warehouse.
- Check out our portal for up-to-date pricing information.
In an effort to keep our customers in the loop, we have begun updating our portal pricing regularly to reflect to the constant fluctuation of the market.
As cost continues to change, check back here for updates and industry information. We understand what it takes to plan and run a successful operation and we’re here to help you achieve just that. Be sure to check out the clearance section on our website for additional ways to save.