UK Batteries: No Wholesale Price Reduction

Despite falling commodity and metal prices, UK Batteries has warned the aftermarket that there won’t be a wholesale reduction in unit prices. While it is true that the price of batteries is strongly influenced by the London Metal Exchange (LME) and LME came down in July, August and September, at the same time the value of pounds sterling against the US dollar meant battery prices have still been affected.

“Some of our customers will look at activity on the LME and when they see this reduction in the price of lead, they will assume there is going to be an automatic price drop,” explained UK Batteries’ marketing and communications director, Neil Warren. “But it’s not quite as simple as that. There are a number of other factors that have to be taken into account and the market needs to be fully aware of them. The poor performance of the pound against other currencies is strongly affecting the situation and also distributors like us work to a two to three-month lead time when stockholding batteries for the winter months.”

Warren conceded that some small sections of the market could experience a price reduction because some distributors built a ‘lead escalator mechanism’ into their pricing some time ago. But he also points out that this obligatory pricing system is not economical in the current market conditions and that these distributors are desperately trying to remove the ‘lead escalator mechanism’ from their future pricing policy.

Warren added: “The UK battery market remains as competitive as it’s ever been and that’s a good thing for our customers. However, we feel it’s not just a question of price. Distributors should be working with supply partners that can give them added value in terms of service and overall package. That’s an area where we feel we outperform anyone else in the marketplace and exceed customer expectations.”