Shrink Wrap Price Increases– Prepare Your Customers Now
Shrink wrap is made of petroleum products, and as you have seen at the gas pumps, prices are rising. Since the beginning of 2011, we have seen costs go up by 20% on resins—and there are still more potential increases on the table for late July and August. Many of our installation accessories including tape, vents, and zipper doors have also been affected by rising costs.
Shrink wrap and installation accessories will not be as low as last year. For those of you in the marine industry, now is a great time to determine your price structure for fall shrink wrap covers and notify your customers of price increases. As always, shrink wrap will be the lowest cost item in any project, but you will need to account for higher material prices, increased transportation costs to get to the job, and more costly propane.
Material cost per boat cover will be as it stands – about 15-20% higher than last year.
If we use a 30’ Sea Ray Sundancer with arch for an example (26’X45’ 7-ml White Shrink Wrap):
•2010 Prices for Shrink Wrap approximately $66.00
•2011 Prices for Shrink Wrap approximately $76.00-79.20
A smaller boat such as a 20’ Four Winns (17’X25’ 7-ml White Shrink Wrap):
•2010 Prices for Shrink Wrap approximately $24.42
•2011 Prices for Shrink Wrap approximately $28.00-29.30
An increase to your customer of about $.50 per foot will cover the added cost of materials. Breaking the material pricing down to cost per boat, or per piece of machinery, will show your customers that these increases do not have to become a deal breaker.
Shrink wrap is still the most cost effective way to keep boats, equipment, buildings, etc. safe from weather damage. Please don’t hesitate to contact Shrink It anytime for current shrink wrap and accessory prices.