As the year draws to a close, sales teams at warehouse shelf companies will follow up with customers who have confirmed their plans and quotes. This isn’t just about hitting performance targets—it’s also because the year-end period brings uncertainties in raw material prices, delivery schedules, transportation, and installation.
1. Raw Material Price Increases
Based on past experience, raw material prices typically rise at year-end. Warehouse shelves are made from processed steel, so steel costs account for a large portion of the total shelf cost. When steel prices go up, shelf prices follow suit. Most shelf manufacturers operate on a made-to-order basis and purchase materials only after receiving an order. If steel prices rise, manufacturers have no choice but to increase their prices—otherwise, they would lose money. This means customers either have to pay higher prices or wait for a price drop, which is uncertain and time-consuming.
2. Delivery Schedule Issues
If shelf orders are delayed until the year-end, many factories face order backlogs and worker shortages due to holidays, making it hard to guarantee on-time delivery.
3. Transportation Problems
At year-end, logistics costs surge due to weather and the Spring Festival holiday, and vehicles are in short supply. In severe weather, shipments may get stuck in transit, causing unnecessary stress.
4. Installation Challenges
By year-end, many installation workers return home early for the holidays, and the ongoing pandemic has worsened labor shortages. If issues arise during installation, it becomes difficult to coordinate solutions due to the timing.