As we all know, the past few months have seen unprecedented increases in fuel costs, which are having a direct effect on the prices of Banner Chemical's clay based absorbents.
The reasons for this are twofold:
After the clay is mined from the ground, it is heated to extremely high temperatures in kilns, a process which has become more expensive with the rising cost of fuel.
Secondly, our sources of material are all relatively far away, namely Georgia, Tennessee and Virginia. The cost of a truck has practically doubled in the last three months, and there is no sign that it's about to get better.
Unfortunately, the result is that you will soon be seeing a price quote with sharp price increases for clay absorbents.
These are a few things you as distributors can do to help swallow these increases. For one, buy in pallet or if feasible, truckload quantities. If you currently buy 50 lb absorbent, try switching to 40 lb. There is an identical amount of product per skid, but the per bag price is lower and you have 10 more pieces per skid translating into 10 additional sales per skid.
Another option is Cellusorb, an all natural cellulose absorbent that we sell in 3 cubic foot bags, or drums. Its just as absorbent as clay, less expensive per unit, and it's burnable, depending on what material has been absorbed.
Call me at Banner today to discuss the options.
Dave Herman
