Resin Bound Trade Newsletter Rising Prices & The Shortage
Vuba Resin Bound Trade Newsletter - January Update 1
This is the first of our weekly updates! The updates will be from me, Sean Scott, founder of Vuba and our Resin Bound Category Manager, Lucy Ackroyd. Hopefully we'll have a few guest writers as well!
A year ago I wrote my first update on our Facebook Forum The Resin Bound Room about shortages and price rises and faced backlash on other forums that we were making it up, there is no shortage and prices wouldn't rise. Our competitors comments aged badly, we were proven right and we are back again in a similar situation this year!
Lucy Ackroyd, Resin Bound Category Manager
"Resin Prices Going up by 40%"
There are a lot of mixed messages in the resin bound market. The first thing to be clear about is that we are a product formulator and manufacturer in our own right, we don't rely on or buy from any other finished product manufacturer. And we are one of the largest manufacturers of polyurethane resin systems in Europe. Some suppliers costs are rising 40% and that is their own circumstance, but that isn't ours.
The majority of the sellers of resin and aggregates are resellers, buying in a product formulated and / or produced by another company. Information is often delayed or confused. Our position in the market has allowed us to be honest with our customers, give months of notice and not spread false hope or panic into the market.
Price Increases 2022
Our prices won't rise by anything close to the 40% that resellers are stating. In 2022 we will represent excellent value for customers. We think our prices will rise by 10% but we expect to be 5-10% cheaper than equivalent products to our 7.5kg UVR Resin Kits.
"The Shortage is Over"
Scarcity of supply is leading to cost-push inflation of prices. Rising prices are a clear indicator that the shortage isn't over despite the claims of some resellers who have recently got excited about a delivery of resin from their supplier!
This year we will be able to supply an average of 12,000m2 of resin bound surfacing per week - a significant increase on last year and continuing our progress as the fastest growing resin manufacturer in the UK.
Misleading Quotes - Size of Area
Something we're seeing more of this year is material quotes being given to contractors which are very misleading. For this update we'll focus on coverage rates.
"A kit will cover 4m2 at 18mm" - No it won't
Due to particle density the coverage rate of all aggregate blends is different.
We have lab tested the density of all of our resin bound aggregates, you can see an example here. Some blends will only cover as little as 3.25m2 and the average is 3.5m2 - not close to 4m2. That means a driveway that should be laid at 18mm is in fact closer to 15mm if using 4m2 per kit. These projects will begin to loosen after a few years, and all for a saving of 5-10%.
No good for the contractor who thinks he's doing everything right, no good for the customer who has placed their trust in the contractor and no good for the industry if people lose confidence in resin bound.
Vuba Only Priorities it's Existing Customers
This was a comment after my last update in December on our forum by a company who hadn't ever bought from us. The answer is we are very close with our regular contractors, give them preferential prices and they benefit from support and products which help them to win work - it's a great partnership. It's very easy to start one of those partnerships with us.
We'd love to work with good, new contractors. Begin a relationship with an account manager, Ellie Platten is one newest account managers and is looking to add new contractors to her portfolio. Ellie.firstname.lastname@example.org or 07494782134.
Ellie Platten, Account Executive
We will help you with a Digital Image Pack (Swatches, Generic Photos), Enquiries for Approved Contractors, Marketing, Technical Support and Advanced Notice of Changes to Price etc. What we ask in return is to show us the same loyalty! Ringing between different suppliers and trying to get the best price doesn't usually result in receiving the best price.
This email update is meant for the Resin Bound Trade! Hope you've enjoyed our update and we look forward to speaking to you soon.