Copper Prices Impact Extension Cords

My thoughts regarding solving the lead time for modifying an imported product (Electratrac Multioutle Cables) were quickly sidetracked by a much more pressing problem related to extension cord manufacturing. That problem is the volatility in copper prices.We received notification that one of our primary extension cord suppliers was raising prices almost 25%. They gave us no warning, so we had no opportunity to stock up at the old price.

GoodBuyGuys.com, as a seller of expendables, is in the marketplace with everybody else when it comes to dealing with the upheaval in commodity prices.

Even though we are a very small business, the makers of our products must compete with some of the largest purchasers in the world when its time to buy raw materials for making the products we sell.

We have seen multiple price increases over the last 18 months on most of our tape products because tape adhesives use products derived from petroleum. One way or the other, $3.00 gasoline is going to be reflected in the price of gaffers tape. Without question, war in the middle east and disruption in the flow of oil from Alaska is going to lead to another round of price increases.

Dealing with the cost of copper is much more difficult to predict. Demand for this metal hit historic highs in November of 2005, primarily based on demand from China. Since our extension cords are made in China, these price increases are what now impact the cables we sell, almost 9 months later. It takes a long time for this price volatility to work its way through the supply chain. We face the double challenge of waiting for the product required to get inventory that is created by shipping from Asia

When a distributor of extension cords in North Carolina has to compete with a country that is building power plants at a dizzying rate, guess who is going to lose?

We are hopeful that copper prices will stabilize, as they are not driven as much by middle east instability and short term interruptions in the delivery system.

If prices decrease in the future, you can be sure that pricing on our extension cords will follow.

GoodBuyGuys.com is your online source for Permacel gaffers tape, Duracell Procell batteries, MagLite flashlights, Nashua duct tape, Bay State wire ties, Electratrac and Coast Wire extension cords, OnStage Stand mic stands, and lots of other useful production supplies.