Ship Shape: Paper and Packaging Prices on the Rise
IBISWorld looks at the rising price of paper and paper-based products and what procurement professionals can do to salvage buyer power.
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Buyers of molded fiber packaging can leverage the high availability of substitutes to negotiate lower prices, such as expanded polystyrene packaging. Despite its higher cost, many buyers already opt for polystyrene packaging instead of molded fiber packaging because of its greater durability and aesthetic appeal. These characteristics boost distribution and presentation of buyers' products. Buyers can leverage the availability of polystyrene packaging as a substitute to negotiate lower prices or to simply switch to the alternative product if the buyer is unable to find favorable negotiating conditions in the molded fiber packaging market.
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