For ongoing or large volume aluminum order, it may seem like a natural option for a business to stay with their current metal supply company. However, this is often a very counterproductive choice, and may actually increase the cost while simultaneously decreasing the value of the order.
Aluminum Mills
In general, aluminum suppliers have working relationships with one or more of the mills in the United States or around the world. They work with these mills to bring in quality aluminum at current market prices.
The aluminum mills, just like any company, operates on the market value of aluminum in their pricing. However, just like any company, the do have incentives and discounts for the companies they do ongoing business with, which are the aluminum distributors based on their volume of business.
By working with an aluminum supplier buying direct from the mills, rather than buying from a metal distributor buying from a middle man, you can actually save money on the per pound cost of the aluminum.
Contracts
For ongoing aluminum purchase, top aluminum suppliers may be able to offer the advantage of a Firm Metal Contract. This allows the supplier to lock in the price with the mill for the customer for a specific quantity.
This often results in a lower price for the customer, but it also has advantages for the mill and the supplier with guaranteed sales to a specific level. These contracts are not for small orders, and typically require a commitment to purchase at least 50,000 lbs in six months. There are very specific issues around the time and the quantity to qualify for these contracts.
Stock and Custom Extrusions
The best aluminum suppliers will offer a very large stock of standard extrusions that are available for immediate sale and delivery. They also have very short lead times for large orders and are able to work with the mills to fill these orders.
Additionally, they are also able to provide custom extrusion services when required. With both standard and custom extrusions, these companies can provide shipping, careful loading of the aluminum and even precision cutting to avoid any loss when the aluminum parts arrive on your job site.
Working with an aluminum distributor rather than a general metal company really does offer advantages. It is well worth comparing the two options before choosing which is the best option for your next large aluminum order.
