No matter what business you are in, when you buy or sell physical products your bottom line is affected by their prices.
Changing prices can hurt your bottom line in one of two ways:
We believe a consistent price protection program can help you do one of two things: control your costs or protect your revenue (or both).
- Purchase price risk: As an end user, products you need may get more expensive.
- Sales price risk: As a producer or middleman, products you sell or deliver may get cheaper.
Why Protect Prices?
We invite you to page through our Hedging Overview. It addresses many
- Sustainability: Allows you to continue in a changing marketplace.
- Flexibility: Gives you options on how to proceed.
- Opportunity: May provide you with the time and means to improve your business.
- Peace of Mind: Allows you execute your business plan while minimizing the threat and distraction of volatile prices.
of the issues your business will face in deciding whether to pursue a price protection plan.