Price Time of Shipment, Are You Crazy? Why We’re Not Crazy.
The world has gone mad. It wasn’t long ago that selling any Russin product for above $10,000 per thousand board feet was laughable – we take orders at that pricing every day. Demand is outstripping supply on nearly every product we offer. Ocean freight costs are through the roof. Container, ocean vessel and truck availability is at historic lows. It wasn’t that many years ago that Russin could depend on a two week lead time from most North American producers, and six to eight weeks from international suppliers – today we’re planning six months out on virtually every product we offer. The world has changed, and we’re changing with it.
This wasn’t written to scare you – it’s merely an effort to inform. There’s still product out there, but we need to think about our purchasing differently than we have in the past. So do our dealers.
With many of our products, including Ipe, Western Red Cedar, and others, there are only a few things that we can be certain of:
- Come Spring, your customers will demand product
- The price will likely be higher then than it is today
- There won’t be enough material available to satisfy demand
Understanding these circumstances, Russin is buying heavily and stacking our warehouse to try to be prepared. That having been said, we recognize the supply/demand imbalance – many products simply won’t be on the floor for easy consumption once the season hits. With a large dealer base clamoring for the same material pile, 2022 is a season where fortune will favor the bold.
Nobody likes to bring material into their warehouse in January. If the product is available, consider bringing material into your warehouse in January. We know – you don’t want to. Neither do we. But we all need to have product available to sell.
Next, consider a Price-Time-of-Shipment (PTS) order to cover your needs in the spring. I wish we could tell you what the price will be, but with some much volatility at play, it’s impossible. But we can be certain that the volumes coming to the Northeast will be less than what is required to service the entire market. By protecting yourself now with a PTS order, you’ll ensure coverage for when wood becomes available, and you’ll sleep comfortably knowing that we’re planning specifically around your need as we allocate our purchasing heading into the spring.
We know PTS is an uncomfortable concept. But scrambling for wood is worse, and losing sales because you’re not able to cover customer needs is worst of all. In volatile and uncertain times, lean on what you know: demand is expected to be strong, and we want to be in the game.