Month: February 2020

Commodity trading is said to be one of the oldest professions in the world. In the past, our ancient ancestors traded goods in a different light as compared to the commodity trading of today. These commodities included food and culinary types, such as spices, vegetables, and livestock. They also exchanged material products, such as gold, seashells, and natural stones. 

Eventually, the currency was developed through time. Today, we buy and sell commodities through the value of money. Additionally, over the past 20 years, the global commodities marketplace has evolved into what it is today — an aptly called ‘supercycle,’ which is the rise and fall of products relative to their prices.

In the following section, we’ll cover what the commodity market entails, and more about its commodity types, tradeable commodity categories, and trading standards.

Types of commodities

In a nutshell, commodities are sorted into two parts — hard and soft. While hard commodities pertain to natural resources, soft products refer to agricultural goods and livestock. Let’s take a look at each:

• Hard commodities: They are said to have a long-standing position in the economy. A perfect example of this is oil, which requires to be traded and exported to meet every country’s oil demand. 
• Soft commodities: They are more flexible as a product. Think about the likes of livestock and agricultural products because they are always in demand.

Ultimately, understanding the difference between hard and soft commodities can help you know which one is worth trading.

Categories of tradeable commodities

At this point, you now should have already been dealing with commodity trading. Nevertheless, it’s best to have a deeper understanding of what tradeable commodities include. Know that there are several specific categories of tradeable commodities, such as the following::

• Metals: These include gold, silver, platinum, and copper.
• Energy: These consist of crude oil, heating oil, natural gas, and gasoline.
• Livestock and meat: These are lean hogs, pork bellies, and live and feeder cattle.
• Agriculture: There are corn, soybeans, wheat, rice, cocoa, coffee, cotton, and sugar.

Knowing these categories gives you a basic understanding of what trading entails and what specific category you would like to invest in.

Commodity trading standards

If you want to successfully engage in trading commodities, every trader is required to abide by the rules and regulations that are set in place for commodity trading. An excellent example is how the government regulates safety standards in the food-manufacturing industry. Of course, you would want to trade in agricultural products and trade livestock that aren’t sick.

Ultimately, know that each country has its own set of laws and regulations, as far as trading commodities are concerned. For this reason, familiarize yourself with them before setting out on any investment plans.

Final words

The global commodity marketplace has drastically evolved over the years, which is why it cannot be denied that there are many complexities in the commodity industry. If you run a business or deal with trading commodities, you will have to dedicate a large part of your life to understanding its complexities, complying with the standards, and keeping up with the changing demands of the industry so that you can thrive and succeed.

BLK Global is specialized in online commodities, raw materials, and industrial supplies. If you are a manufacturing business, a wholesaler, or a retailer looking to optimize your supply chain, contact us today to see how we can help!

Pursuing a construction project can be quite costly. There’s just a lot of things to consider financially—labour cost and materials primarily. While you want to have a successful construction project, you’ll do what it takes to save up on the overall cost. One effective way to do so is to reduce the cost of building materials. It’s possible to save money on building materials; you just need to execute the right financial tactics. That said, here are five tips on how you can save up money when buying construction materials.

1. Purchase materials in bulk

There’s a huge advantage in purchasing materials in bulk or wholesale. Manufacturers can give you a much lower price as compared to buying in small quantities or purchasing from single retailers. 

First, single retailers require you to buy a minimum quantity for a discount, but that’s not the case with wholesalers. Second, it’s more practical to buy most materials in bulk than split them, which can incur other miscellaneous expenses. That said, sort the materials into separate sections and estimate the cost for each. From there, assess which ones are available in wholesale and which ones aren’t.

2. Invest in easy-to-install materials

Investing in easy-to-install materials will help you save money, time, and labour. You won’t have to shell out a considerable amount of money for the extensive labour services performed. For instance, consider various electrical products that are easy to install, such as electrical outlets, light switches, electrical boxes, electrical conduits, and motor controls. However, make sure you buy simple yet quality materials, so as not to have issues in the future.

3. Opt for prefabricated materials

Know that prefabrication is the assembly of different parts of the building at the manufacturing unit. The parts are then transported to the actual construction site for the entire assembly. It’s best to choose these custom-made parts of a building for various reasons. For one, modular construction is a lot more affordable than traditional construction. Two, it requires less time and reduces the labour cost. Overall, you can save money on construction financing, raw materials, and labour.

4. Negotiate with a network of suppliers

It’s best to deal with a network of trusted suppliers for a handful of reasons. For one, you won’t be shortchanged in terms of the quality of materials being supplied. Two, these suppliers can provide you discounts as their much-valued clients. All you have to do is to negotiate for the material costs and even ask for free delivery. In most cases, they will comply with the request, but you have to ask.

5. Set out good payment terms

Establishing good credit with suppliers can make all the difference when purchasing materials. It’s best to apply for credit terms with your material suppliers. Some suppliers provide forms of trade credit where you are bound to pay within 15, 30, or 60 days after the materials are delivered. Such payment terms can be a good idea, depending on what works for you. Who knows? The same suppliers may even offer discounts that will help you save money.

Final words

It won’t hurt your construction project if you know how to reduce the cost of buying your building materials. As long as you don’t compromise the quality of the materials being purchased, then you’re on the right track. 

That said, consider the five practical tips outlined above—buy materials in bulk, go for easy installation, opt for prefabricated materials, negotiate with suppliers, and set out payment terms. All these will ensure cost reduction and a successful construction project.

If you’re looking for a building materials supplier in the UK, get in touch with us to see how we can help.

More fuel companies have emerged in the UK to compete in the tight oil and gas industry. Today, price is no longer the only factor that customers must look for. An ideal fuel supplier must be competitive in terms of services as well. 

Fuel companies have different strengths and weaknesses. While others offer the cheapest deals on the market, some companies focus more on renewable energy and corporate social responsibility. Every customer has different needs as well. 

To find the fuel supplier that best fits one’s needs, here are the top three tips in choosing the right one.

Consider the company’s prices compared to the market rates

Finding a good deal means checking for the best prices on the market. Most consumers select their suppliers with pricing in mind. It is best to make a price comparison template to plot the market rate of different fuel companies. One way to do this is to check each company site. You can also check a price comparison website that reflects energy prices within one page. 

Check the reputation of the fuel company

A reliable fuel supplier must have proven experience and expertise in their line of business. It is not enough to have low prices alone. Instead, they must be known for providing excellent customer service and timely delivery of products or services, as well. It is also helpful to see the mission and vision of the company, as well as its brand value. 

While looking up their brand, try to read about their corporate social responsibility efforts that enrich the community. Aside from being professional, a good company must also be known for humanely running their companies.

Look for a fuel company that offers public transparency

Before switching to another fuel supplier, it is best to check if the new supplier has public transparency. Every customer has the right to know all relevant information about the company. Understanding this relevant information aims to protect consumer rights. Customers must be wary of companies that are too secretive with their data. 

Some of the necessary information that suppliers must disclose are the total contract price, terms, or mode of payment. The company must also advise the customer in advance regarding what happens in case of contract termination and if there are corresponding termination fees. 

Conclusion

Research and groundwork go a long way in helping the customer make more educated decisions. However, looking for the right fuel supplier is quite overwhelming, considering that there are many companies to choose from. Luckily, there are online platforms that provide a concise summary of each company. 

BLK Global is a leading online marketplace that offers a wide selection of raw materials and industrial supplies. It is an online avenue that aims to connect buyers, sellers, and shippers around the world. It is a place where customers have the chance to search, filter, and choose the materials that they need, as well as compare their market prices. 

If you’re looking for the most convenient and reliable platform where one can find the perfect fuel supplier, connect with BLK Global today. We’re happy to help.

Purchasing the required materials in construction is constant and necessary. You have the option to either buy items consistently or do so one time by bulk. 

Buying materials in bulk come with some perks. Bulk purchase of construction materials can be all the more beneficial to contractors with multiple ongoing projects having the same product requirements. As long as you have a viable plan and strategy set in place, a high-volume purchase can do your business good than harm.

At this juncture, you might be wondering: How can a bulk purchase of construction materials be advantageous for your business? Keep on reading to find out.

1. Cost-saving

There are many expenses involved in construction, and the required materials alone can be quite costly. Consider as well the other expenses that come with the material purchase, such as the shipping and disposal costs. The more you purchase regularly, the more you’ll have to shell out money. As a business, you’ll do what it takes to save up—and bulk purchase is such a viable solution. By buying in bulk, you can actually get discounts and reduce costs on other miscellaneous expenses, such as delivery expenses.

2. Increased productivity

There’s definitely downtime when materials aren’t readily available for construction. In some instances, you would run out of resources and would have to request for materials to be brought at the construction site. The waiting time can impact productive hours significantly. On the other hand, a bulk purchase can ensure that you have enough materials for construction. As long as they are safely stored, then your workers can quickly have access to the materials and readily use them for construction.

3. Material consistency

There’s a considerable difference between materials bought from various suppliers and bulk purchase of materials coming from only one source. The first option can lead to inconsistent materials in terms of quality, volume, and even application. On the other hand, a bulk purchase can ensure the consistency of your materials, which can impact your construction positively. When it comes to the construction business, consistency is key. 

4. Timely job completion

In construction, there’s typically a specific timeline to follow, and a completion date is usually set. The least you would want to happen is to have delays in the entire construction process. As mentioned above, downtime is a possibility with a lack of resources and materials. When this often occurs, then the job completion may be delayed or extended. When you resort to bulk purchase, you can ensure the availability of materials. As a result, you can expect your workers to deliver on time.

When contractors deliberately plan and decide on the schedule, volume, and all other concerns associated with the material purchase, then buying in bulk can be extremely beneficial for your business. 

As explained above, a bulk purchase can lead to cost-saving, productivity, material consistency, and efficiency. With these valuable benefits, your company gains time, saves money, and sets your business apart from the competition.

If you’re looking for building materials supplier in the UK, get in touch with us today! We’re happy to help.