B-Loony would like to make all customers aware of extreme price fluctuations in the global market for both raw materials and logistics services which are affecting promotional merchandise prices.
During the pandemic, we have all been acutely aware of certain shortages of goods and particularly since the UK has left the EU, with challenging port, freight and carrier conditions adding to the mix. In the last 6-9 months, the price of raw materials started to creep up including staples for our industry such as cardboard, paper and plastic causing dramatic increases not just in the UK but across many markets.
Brace for potential price increases
In anticipation of rising costs, industry suppliers are expected to issue revised pricing. Whilst we have borne additional freight and raw material price increases where possible in recent months, this is not sustainable.
With the global economic pressures on raw material shortages and subsequent eye-watering price increases which have followed, we are preparing the ground for the inevitable impact. Add logistics cost increases and extended delivery times into this mix and the result is an increase in promotional merchandise prices.
The raw material list includes but is not limited to:
Not just promotional products
It is imperative to understand that these increases are not limited to the promotional merchandise industry. Globally, the price of raw materials is pushing costs up everywhere, but it is important to stress that the market forces at work here are beyond our control.
There are a number of other factors also affecting in the industry; continued Covid isolations, sadly those unwell with the virus, increased running costs of business. As we receive reports from our industry and others across the UK that spend is being increased, enquiries and order levels are at the biggest high for over 12 months, the balancing act for all concerned is exceptionally challenging.
We would again like to thank all of our customers for their support over the last 18 months and for their continued understanding throughout this evolving situation.
This information has been adapted from guidance provided by The British Promotional Merchandise Association to its members. For more information, please see https://www.bpma.co.uk/price-alert/