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Signs 365

Pauly

Pauly

Printrade.com.au
ikarasu said:
Our inventory has doubled. But we have the warehouse space to do it in and not have it be a problem. Our yearly inventory is going to be fun...

We're sitting on 3 skids of aluminum, 2 skids of coro, 2 skids of polyplate... a full skid of Alupanel, 2 rolls of our not so used vinyl, like 5-10 rolls of our most used vinyl....when we used to stock a few sheets of each and order as needed.

It isnt even about a shortage anymore. Everytime we buy something the price jumps up another 5%. I used to buy a sheet of 5x10 aluminum for $90...and now I just got quoted $142. So we buy a skid or two extra to minimize on the skyrocketing prices. Not only do we save by not buying it after the next 5% bump... but we get a deal since we take in so much of it. Before we were scared of running out of material... That doesnt seem to be the issue anymore, we can get whatever we want.. it's just between 10 and 30% more in cost.
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That's a different situation.
We always buy bulk of what we use more of. lowers pricing. keeps stock always available.
 
Notarealsignguy

Notarealsignguy

Arial - it's almost helvetica
ikarasu said:
Just out of curiosity I E-mailed the 3 suppliers we buy aluminum from asking what the price on their inbound shipment will be. $167 per sheet... But theres 2 skids at the old $142 pricing left. so I can buy 150 sheets right now for $21,300... or in December those same 2 skids will cost me $25,050... Almost a $4000 hit seeing as how we use a skid per month roughly.

So It looks like I'm going up to 4 skids on the floor and that'll last us into the new year when it'll probably jump up to $200 a piece!

But yeah. I think right now it's not a panic buying issue, and it's more of a save 15-20% On cost if I buy it this month vs if I buy it next month. Certain things like aluminum which is 90% of our business will get used up for certain... So why not buy a ton extra and get some savings? tying up capital sucks, but unless the price of aluminum decides to drop dramatically... and lets be honest, even if suppliers started to get the old pricing back, they know what we'll pay for it now and the price isnt going to drop.... so some stuff is a safe bet to stock up on.
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Why don't you buy coils if you go through so much? Way cheaper. Buying all of this inventory based on potential rising prices is crazy, just ask the lumber buyers how that all worked out
 
Texas_Signmaker

Texas_Signmaker

Very Active Signmaker
I was going to say... lumber crashed hard. Aluminum is going up and up... can't do that forever
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I

ikarasu

Active Member
Have you guys actually seen lumber drop in price?

Were still buying it by the sheet because the price is way too high. We use G2S plywood a lot, used to pay $45 a sheet... Right now it's at $65 if we buy by the skid. (checked last Thursday... Unless it crashed since then)

Even if it crashes. It takes months for stock to arrive here from China.. so until all their current stock is gone, prices wouldn't drop and having a few months supply isn't bad.


Never tried coils, I imagine we'd need a sheer and forklift capable of lifting that heavy of a coil up though... Not sure it'd be worth it!
 
Notarealsignguy

Notarealsignguy

Arial - it's almost helvetica
ikarasu said:
Have you guys actually seen lumber drop in price?

Were still buying it by the sheet because the price is way too high. We use G2S plywood a lot, used to pay $45 a sheet... Right now it's at $65 if we buy by the skid. (checked last Thursday... Unless it crashed since then)

Even if it crashes. It takes months for stock to arrive here from China.. so until all their current stock is gone, prices wouldn't drop and having a few months supply isn't bad.


Never tried coils, I imagine we'd need a sheer and forklift capable of lifting that heavy of a coil up though... Not sure it'd be worth it!
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There is always a delay.
 
Texas_Signmaker

Texas_Signmaker

Very Active Signmaker
ikarasu said:
Have you guys actually seen lumber drop in price?

Were still buying it by the sheet because the price is way too high. We use G2S plywood a lot, used to pay $45 a sheet... Right now it's at $65 if we buy by the skid. (checked last Thursday... Unless it crashed since then)

Even if it crashes. It takes months for stock to arrive here from China.. so until all their current stock is gone, prices wouldn't drop and having a few months supply isn't bad.


Never tried coils, I imagine we'd need a sheer and forklift capable of lifting that heavy of a coil up though... Not sure it'd be worth it!
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It's much cheaper here. One of the builders I do sign work for had some apartment starts on hold... they went in when it crashed. At the hardware store prices are now lower than before covid. Maybe Canada is different. You're buying aluminum at the peak and think you're getting a good deal.
 
I

ikarasu

Active Member
Most of the plywood comes from Canada...or at least BC.

I think we're getting screwed on Aluminum. We're just getting screwed less right now than we would be next month when we placed another order. I'm not keeping a 6 month supply or anything.... Currently sitting at 2, and thinking of going to 3. even if Aluminum crashes overnight, it'd take 2- 3 months for us to see price drops from our suppliers.... They buy it by the container and they're not going to drop their price until their current stock runs out.
 
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