Plastic is an extremely versatile material, and it is used to create hundreds of thousands of different products, such as shoes, medical equipment, building components, and so much more.
Plastic products have received a good reputation for being very affordable in most cases, but what are some of the factors that affect the selling price of plastic products? Let’s have a look!
Oil Price Fluctuations
In this modern day and age, oil price increases are bound to affect the prices of almost all products. When the oil price increases, petrol goes up, and then so does the cost of delivering materials, shipping products etc.
PVC Granule Prices
The vast majority of plastic products are made from PVC granules. These granules are the most important material in the production process, and when the PVC granule price fluctuates, so does the selling price of the end product.
Type of Plastic
PVC is probably one of the most popular types of plastic thanks to its versatility and durability. But there are many other types of plastic, each with different costs associated to them. The selling price of a plastic product will be somewhat dependent on what type of plastic it is made from.
Demand for the Product
If there is a very high demand for a certain product, manufacturers may be under a lot of pressure to fulfil their orders. High demand and popularity of a product can push the price of a plastic product up, while a drop in demand may lead to discounts on deadstock.
The Production Process
There are various ways in which plastic products are produced, and production costs can have an affect on the selling price of the product. Production costs include things like equipment maintenance, labour, rent, utility bills, and more.
Does your business manufacture plastic products or is looking into manufacturing plastic products in the future? Here at Innovative PVC Compounds, we supply high quality PVC raw materials. If you are interested in PVC granule prices, please get in touch with our team and they can answer any questions that you may have.
