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Oil prices


Smiley

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Actually the container price is nearer $3600 for s twenty and $4500 for s forty then you add port fees and customs, container fees usually include local delivery. Customs can be a pain because if they decide to inspect you pay for that plus storage while your container waits to be inspected . I have had as much as $900 tacked on because of customs.

Also a used injection molding machine is around $250000 a mold for capsules was ( a few years ago) around $60000.

The beads used in the machines are most likely purchased on a contract to lock in a good price and the oil used to make the beads is also on contract.

Things are never as simple as people think.

I think rodney was quoting West Coast container pricing when he mentioned the 3000 number. He also referenced the backlog in the pacific ocean. the East Coast guys fortunately are not dealing with that.
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Rodney you need a job with a supplier. You sound like you're on their side

 

LOL! I have in the past started distribution, imported from china and so on in another area. My point was that most of us don't look at the actual cost of everything. Thats all. I don't personally care either way. Everyone laughs at distributors that don't have a warehouse, but then complain about the ones that do. 

 

I think that if someone runs a corporation at some point, or is in the upper management and see's what's going on, will understand better. They make money, not trying to say they don't, but so do we. 

 

I just like to give a different perspective so the whole picture is there. I hate paying 30.00 for 1"! But if it sells quick enough, I'll do it!

I think rodney was quoting West Coast container pricing when he mentioned the 3000 number. He also referenced the backlog in the pacific ocean. the East Coast guys fortunately are not dealing with that.

 

It was an old price from 7 or 8 years ago to the port in Vancouver, WA

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I find it interesting that THE DOLLAR TREE is stuck selling the same merchandise at $1 per item (or less) and yet their margins increased from .33 in july 2007 to .34-.35 almost every quarter since 2007!!  Granted they can take more liberties in quantity size etc than we can in bulk... but there is still something to be said for that fact.   

 

The drastic increase in prices to the bulk industry have little to do with input costs.  I agree 100% with smiley that there needs to be more competition..  The part that I disagree with is how easy it will be to disrupt the pricing structure of the industry ( when I say industry I mean the big suppliers). 

 

the "law of diffusion of innovation" states that a product needs about 15-18%market penetration to gain mass acceptance..  Yes, the "law" applies to new products/technologies, but I think the same concept should be applied to a new supplier in an industry as well...  

The problem for a new supplier is finding all of the vendors!  This industry is way too fragmented and even if all of the active guys on this forum were to buy from "the new supplier" it would still be less than 5% of the market.. not nearly enough to change things.   

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this would be an interesting exercise:

the price on the y axis is not needed, just the lines showing divergence.

could someone plot the average fob. price paid for capsules 2 inch, from 2007 until present... then plot the average fob price paid for generic forty nine millimeter balls mix from 2007 until present. lay the charts over top of one another and see if there is divergence...

the reason.. bouncy balls are the most closely correlated product to oil... and it is about as close to a commodity as you can get in our industry... my generic forty nine millimeter ball is no different than your generic forty nine millimeter ball... therefore, pricing should be very competitive.

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I don't even need to look that one up! My price for superballs has been pretty stable the last few years. I think they have even been a little down through. Shipping over all has been pretty flat for me too (truck shipping) I think suppliers are doing pretty good at finding truck bargains. Capsuled product costs have crept up though. Capsule product cost increases are not quite as bad as plush has been. So maybe its more a product of raising labor costs and unrest in China?

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True. a few months ago I plotted my average price of generic jumbo over top of CPI since 2007. Almost 100% correlation with CPI. Then I plotted lislicense jumbo over top of that chart. 100% correlation until nanco went out of business. Since then, license plush has got extremely expensive. Relative to generic.

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I wonder how they were able to reduce the price of gas at the pump? After all, they have shipping expenses and labor expenses that must be going way up.

So ridiculous to accept no price decrease when the main ingredient of your product had dropped by over 30 percent.

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