There is increasing speculation in the promotional business gifts marketplace, and other business sectors, of significant prices rises filtering through to end users soon.
Our professional body, the British Promotional Merchandise Association are making all members aware of cost fluctuations in the global market for both raw material and logistics services which are affecting promotional merchandise prices. Several of our principal suppliers have also warned our UK buying collective PAGE of rises coming through in August and September.
Brace for price increases
In anticipation of rising prices, some industry suppliers are expected to issue revised pricing in the coming weeks and months to reflect the situation. Whilst many suppliers have borne additional freight and raw material price increases in recent months, it is understood this is no longer viable for many in the market. With the global economic pressures on raw material shortages and subsequent eye-watering price increases which have followed, members must start 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 affected includes but is not limited to:
Not just the promotional gift industry affected
Possible substantial increases are not limited to the promotional merchandise industry. Globally, the price of raw materials is pushing costs up everywhere. Post Brexit tariffs and extra administration also add to ongoing costs. We would like to stress to our customers that the market forces at work here are beyond our control.
There are a number of other factors also affecting many industries; continued Covid isolations, sadly those unwell with the virus, add both increased running costs and longer lead times to our 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.
The UK’s leading promotional gifts manufacturer, PF Concept UK Ltd, have also issued warnings as demand increases. Pieter Boonekamp, General Manager of PF International has advised us “The unprecedented acceleration of demand has also created a sudden increase in activity in our Polish and UK factories that we were sometimes unable to deliver within our standard service levels. This has resulted in extended production lead times in June. We are conscious of the problems this has generated for our customers and appreciate your support and understanding. We are putting everything in action to get back to normal within the month of July.”
Looking after our customers
At BusinessGiftUK.com we communicate with clients throughout the order process. This ensures all stages of an order are fully understood, managing expectations from enquiry through to delivery.
Enquiry & Quoting
- WE make sure, especially if a repeat order, stock is available and at what price
- WE check how long quotes are valid for and don’t assume quotes will be valid for extended periods
- WE check to see if stock can be reserved for short periods to guarantee specific goods are available for customer deadlines
- WE check if there any lead time or availability challenges impacting the order you might wish to place
- WE advise any additional freight or carrier costs or delivery restrictions clients need to be aware of
- WE advise what terms are your orders being delivered on and how this could impact on cost and lead times
The BusinessGiftUK team inform and manage expectations at all stages of the supply chain to ensure customers are aware of progress.
We will also be following the advice of Carey Trevill, CEO of the British Promotional Merchandise Association “Placing orders – Check, check and check again: clarify and confirm all details before orders are placed – assume nothing, check everything!”
You can see the BPMA check list attached which is followed by our experienced team.
The experienced team
We are committed to being a partner you can count on by providing an easy, reliable service experience. We deliver expertly decorated products on time, every time. It is reassuring that so many customers have stayed loyal during these difficult times. Our friendly team have over 100 years combined experience in the promotional business gifts industry.
Thank you for your trust. As always, we appreciate the opportunity to partner with you, and we look forward to a great second half of the year together.
Our long-standing relationships with several leading UK promotional products manufacturers puts us in a great position to locally source, cost effective solutions, for all our clients.
If you would like to discuss any aspect of how this could affect you and your business, please get in touch. Contact myself, Nicola Derbyshire or Ben Ward. Please use our Get in touch page or call the office number below.
Stephen Ward, Managing Director
Nicola Derbyshire, Sales Manager
Ben Ward, General Manager
Tel 01772 429111