14th November 2010
While most manufacturers are non-committal on what 2011 has in store, some distributors appear to be jumping on the bandwagon and using the approaching year end to justify additional price increases.
As you are no doubt aware, almost every paper manufacturer in the UK increased their prices last year. We saw increases of between 5% and 12%.
The one brand that was able to buck this trend was Jangro. The group has recently seen its membership grow to 40, with a joint turnover in excess of £100 million, each member is owner managed and totally independent.
The buying power of this consortium and its relentless growth has forced manufacturers to reassess Jangro’s position in the market. The amount of interest shown in the recent Jangro paper tender was unprecedented, with companies like Metsa Tissue (Katrin), SCA and Peter Grant intensely competing for this 1 year contract.
Ask yourself this question, am I paying more than I was this time last year for consumables. Furthermore can I expect a reduction next year or is my distributor looking to increase prices again?
There is still great instability in the paper market with some experts predicting another rise early next year. I would recommend you try to get fixed prices until the end of 2011, because without a supply contract in place, your distributor will be at the mercy of the market.