FACTORS AFFECTING GYM EQUIPMENT MANUFACTURING PRICES
HOW DOES KNOWING THIS HELP ME?
There are two types of factors, one that you can control, the other you can’t control, understanding them both allows you to know how and when to buy.
FACTORS YOU CAN CONTROL
- When you buy
- How much you buy
- Where you buy from
When You Buy
Home and commercial gym equipment has seasons so if you’re buying based on reaction to seasons from a new manufacturer, you may find prices slightly higher than a manufacturer’s quiet period. Retail gym equipment suppliers need stock arriving before Christmas for the Christmas gifts and New Year fitness uptake, however, commercial facilities want to refurb and replace during their quiet time around November so stock needs to arrive with the seller in Autumn.
Of course it you are already buying from a manufacturer, you can maybe use this knowledge to negotiate at their quieter times.
You may also want to avoid shipping products from Sept – Dec when the Christmas shipping surcharge is added.
How Much You Buy
This is two fold, of course buying 200 racks instead of 20 you’re going to get a better price. The other factor is volume, if you can fill a container you will get a better price compared to 10cbm, however, most products like plates and flooring will surpass the weight allowance of a 20ft and well before a 40HC, so if you have high volume lighter products you can mix, do some mixing.
Where you buy from
Of course you need to shop around, ensure you are being offered the best price for your products but also ensure there are good logistics. No good buying cheaper benches saving you $400 that are 1000km from the port that costs you $600 to truck. Pay attention to logistics. It’s cheaper to ship 2 half containers separately if the factories are 500km apart instead of consolidating them.
FACTORS YOU CAN'T CONTROL
- Exchange rate
- Raw material prices
Exchange Rate
Your local currency to USD can have a big impact. If there is political instability, pandemics, extreme bad weather, these will usually weaken a currency, so if you have a fair prediction you will be buying in a few months and you think your currency will weaken, then exchange the money as soon as you can.
If the YUAN is weak against the USD, it’s a good opportunity for you to negotiate on prices for that order. Factories and sellers in China base their prices on a bad exchange rate so when it is working in their favour, there may be some wiggle room.
Pick a bank with a good exchange rate. I’ve seen $40,000 payments put through Western Union costing an extra $1000. If you’re not a huge company then an online international account with a company like Wise.com may save you a fair amount.
Raw Material Prices
Steel and rubber are the two major raw material used in gym equipment. Raw material availability and demand affects cost. Some stell comes from outside China so exchange rates and shipping fluctuations from the originating country will affect these prices.
Know where your raw material is coming from and the current prices to ensure you are getting the most competitive pricing at that time.
CONCLUSION
There are multiple factors that affect the end price of a product, understanding the true product value at a given time gives you the ability to negotiate with knowledge and buy at the right time. Business is competitive so every dollar counts.
For the most competitive pricing for gym equipment, from Barbells to Storage, get in touch.
