| Monday, June 16, 2008 - 02:59 pm |
There have been complaints about product pricing in common market contracts.
We receive requests for lower pricing.
Common market contracts should be beneficial for both parties and they are.
The selling party gets a good price and does not need to worry about selling the products as they always sell.
The purchasing party has the great advantage of guaranteed deliveries, which is a problem most of the time as markets are showing shortages in most products.
Purchasing is at market price (with quality correction).
On the general market, the price is the same or higher and shortages can cause immediate orders that are executed at a much higher price.
To make sure they get the products on the global market, many buyers offer a higher price defined as a percentage above market price.
Product pricing in common market contracts, follows the market and the price paid and received is fair.
If anybody has a different experience and has seen contracts producing lower or higher prices then we have described here, please let us know.