Budgeting Considerations For Metal Purchases: The Dangers Of Making A Decision Based Solely On Price

For most businesses keen to stay ahead of their competitors and conscious of the need to minimise expenditure, the price of raw materials will be influential in the decision-making process. However, is it sensible to give too much weight to price factors or should more consideration be given to other variables that could affect the quality of the final product?

If you have responsibility for sourcing metals for your business, it’s vital that you have a balanced approach to the purchase price, without compromising on quality and service.

 

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The Benefits Of Paying A Higher Price

Obtaining materials for the lowest price – without regard for quality – inevitably means cutting corners on service. From the correct certification (and any additional testing you or your customer require) to the technical expertise and response times of suppliers, purchasing metals is more than just obtaining the raw materials themselves.

Deciding which materials to purchase purely on price risks losing vital additional benefits that are essential to secure the best products and prevent manufacturing problems.

 

Securing The Supply Of Materials

Relying on metals at the cheapest price is a risky strategy, as customer demand driven by low prices can make supply uneven, with shortages occurring just when you need to source the materials for your production line. Metals, too, may be subject to fluctuating prices, so switching from one supplier to the next can cause supply chain issues.

A stocking agreement can be a valuable way to secure the regular supply of metals from a single supplier, so you receive materials in a timely manner. By making that commitment with us, we will ensure regular on-time supply and give you the reassurance that you won’t be left with a black hole in your raw materials stock.

 

The Hidden Risks Of Purchasing By Price Alone

In simple terms, cheaper is not always better. Purchasing the cheapest materials poses several risks that could threaten the productivity of your production line or the integrity of your business, including:

  • Inaccuracies in orders, with products not being supplied to the correct specification.
  • Delays in fulfilling orders, leading to periods of downtime when raw materials aren’t supplied on time.
  • Substandard materials that lead to problems in the fabrication process or compromise the quality of your products.

 

Sourcing Raw Materials From A Reputable Supplier

When you’re sourcing metals for your business, it’s important not to give too much emphasis to suppressing your costs, but to discuss your needs with a reputable supplier who can work in partnership with you to supply the metals that meet the grade and specification for your project.

At Broder Metals Group, we supply an extensive variety of metals, for excellent value without compromising on quality. For more information on how our team of experts can source the raw materials you need, feel free to contact us.

 

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Budgeting Considerations For Metal Purchases - The Dangers Of Making A Decision Based Solely On Price