Price of paper bags

gavney1

Hi There

Our supplier of paper bags rang me last week to inform us of a 12% price increase coming in early 2011. He said the reason was increased price from his suppliers

I asked him to come in, and show me the proof that his suppliers are in fact increasing their price.

I presume the reason he and/or his suppliers are increasing their price is because of reduced demand, they are trying to compensate by increasing their margin.

I accept increase in cotton prices from those who supply our goods and we've absorbed most of these price increases ourselves, without increasing our own prices (with a handful of exceptions) But paper bags? Has the price of paper gone up or something????

Does anyone know is there any genuine reason that paper bags should be going up in price, or is this guy just chancing his arm?

Thanks

bon ami

Paper prices do fluctuate greatly and on a regular basis. I worked in the paper industry and these type of prices were not unusual. Do you buy large quantities of bags. If so, you may be able to source better prices by importing them yourself from the far east.

gavney1

The key word is "fluctuate" though.

If they fluctuate, then our prices should go up AND down from time to time.

All I've ever seen is prices going UP though. I haven't seen many price increases admittedly. We had a smaller increase a few years ago, that's all I remember.

Like I Said

gavney1 wrote: »

Hi There

Our supplier of paper bags rang me last week to inform us of a 12% price increase coming in early 2011. He said the reason was increased price from his suppliers

Even if his PAPER suppliers are increasing by 12% . The rest of his costs will be fairly static or even reducing. What % of your total order cost is the material 'Paper'. I bet at least one third will be Labour ( Not increasing and maybe reducing) Overheads about one third ( Inflation at about 1 %) and Paper ( using his figures up by 12%).
So on this little example the total cost should increse by about 4% not 12%.
Remember it depend on the type of paper bag you are getting. As to the cost spread %. If the bags are plain with no print or finishing the material % will be higher or if they are Fancy bags then the labour costs will be higher and the material cost ie Paper will be lower.
Hope this gives you some help.
What Quantity and type of paper bag are you using?

91011

Board & paper prices have increased substantially over the past year. - Some grades by almost 40%

There are ways of reducing prices - reduce the size of the bag or reduce the quality of the bag.

If quantities are big enough, you could go direct to manufacturers - ab convertors in blessington is a good one.

Prices outside ireland won't be any cheaper - I've checked and also quite a few uk companies get their bags made here.

a quick google give you this http://www.foex.fi/ kraft liner (main paper bag material) up from €416 to €608 this year. - that's almost 50%, so a 12% finished product increase is about right.

Cianos

Mini thread hijack: Can someone recommend a good place for getting branded paper bags printed?

91011

Cianos wrote: »

Mini thread hijack: Can someone recommend a good place for getting branded paper bags printed?

if it ones with handles then ab convertors in blessington - min 10000

if its flat bags then sam mc lernon on naas road

gavney1

91011 wrote: »

Board & paper prices have increased substantially over the past year. - Some grades by almost 40%

There are ways of reducing prices - reduce the size of the bag or reduce the quality of the bag.

If quantities are big enough, you could go direct to manufacturers - ab convertors in blessington is a good one.

Prices outside ireland won't be any cheaper - I've checked and also quite a few uk companies get their bags made here.

a quick google give you this http://www.foex.fi/ kraft liner (main paper bag material) up from €416 to €608 this year. - that's almost 50%, so a 12% finished product increase is about right.

ab converters are exactly who we're buying from.

if that's true, we'll have to just look for a 5% increase, and start really being tight with our consumption

just googled kraft liner, thanks

91011

gavney1 wrote: »

ab converters are exactly who we're buying from.

if that's true, we'll have to just look for a 5% increase, and start really being tight with our consumption

just googled kraft liner, thanks

I find they are about the cheapest around - I tried several UK places and they came close to ab prices but when transport was taken into account, they were much higher.

darraghokelly

You Should try www.paperbagsdirect.ie they source directly and have excellent pricing. They source from europe with a 6 week lead time. No more of this chinese bags waiting 14 weeks just to get free plates. They are a great company check out their irish site

91011

darraghokelly wrote: »

You Should try www.paperbagsdirect.ie they source directly and have excellent pricing. They source from europe with a 6 week lead time. No more of this chinese bags waiting 14 weeks just to get free plates. They are a great company check out their irish site

Ridicously high prices on that site for plain bags - 24.5c for a large plain brown bag:eek::eek: & 15.6c for medium :eek:

I know I've never paid more than 11c for a plain medium bag bought by box and far less when bought by the pallet. - And made in Ireland.

TheInquisitor

We deal with boyce and co(exeter Uk, No website) and they are excellent. Fair enough they have them made in china and it does take 14 weeks but the price is dirt cheap.