Ship Shape: Paper and Packaging Prices on the Rise
Buyer Power
With steady demand for paper-based packaging products and rising prices of wood pulp and paper, prices of boxes, packing materials, packaging services and more will continue to trend upward. Fortunately, buyers can protect themselves from rising prices in multiple ways. In the corrugated boxes market, buyers can take advantage of the commoditized nature of the product and shop around for the cheapest price. Buyers of molded fiber packaging, meanwhile, can look to viable substitutes if they feel the supplier is charging too much. Finally, buyers in the packaging services market can leverage the price competition that comes from low market share concentration. In addition, buyers can bundle these purchases with other paper and packaging goods from the same supplier, such as tape, cushioning or stationery, to help secure a lower price. Buyers may also get volume discounts by placing large orders or entering into longer-term contracts with suppliers.