With the cost of gas ranging around $4.00 per gallon, a pinch is being felt in consumers’ wallets. However, as the price of crude oil increases, so does the price of nearly everything that is made, transported or sold in America.
As one of the many products derived from petroleum, the plastics industry is, unfortunately, no exception to the recent spike. In fact, with America’s heavy dependence on transportation and growing demand in countries such as China, the market for plastics may become even more volatile in the future.
So what does this mean for businesses?
The answer is simple: prices will increase. Rising costs in everything, from shirt buttons to soda bottles to DVD cases, will alter the market of respective products, often without affecting the actual product itself.
Passing off these costs without alienating customers can be a slippery slope for many businesses. In light of such issues, the real key to success is creating a product that maintains functionality without sacrificing quality or price. For example, at Sunrise Packaging, our 2-hub 10-disc capacity album the same functionality and durability but eliminates the need for sleeves off-setting rising costs and creating a more environmentally responsible case.
In the fast-changing world in which we live, the most successful businesses are the quickest to adapt. At Sunrise Packaging, we’ll do our best to help you adapt.
Tags: oil & the economy