Since fireworks are more of a seasonal item, most consumers are not aware of the trends in the business or how price increases effect the end user of fireworks, the consumer. Well, surprise. In this blog we are going to bring to the attention of the "average" buyers of fireworks a crash course on why you are seeing HUGE increases in fireworks prices from what they were just a year ago.
So let's get right down to business. The biggest contributor to the HUGE prices increase in both consumer and professional fireworks is NOT the cost of production of the fireworks themselves. Considering the majority of fireworks come from the country of China, shipping plays a major role in the end cost of the products. Even though material cost are on the raise, shipping companies or should I say, the main shipping company in China that controls the shipment of fireworks has went rogue. Rogue? Well, here is how we will draw this conclusion for this term. The average shipping cost per container for general merchandise coming from China, can be anywhere from $4500 US dollar to $6500. But, today we have seen a continued spiking of pricing from the main shipping company in China that ships fireworks to the United States. They can't say it's the cost of fuel, or the cost of labor for those shipmates. The question remains as to why shipping cost went from the average of $15K per container to $40K in less than one year. GREED? Or is there a bigger picture that is designed to put fireworks manufacturers or buyers OUT OF BUSINESS? Only those behind the scene can answer these questions. Will it have an effect on the sales of fireworks? It very well could have. Is it designed to limit the number of stores or importers that will be able to meet the financial burden of the cost to import? It could. Or is it designed to limit the FREE MARKET and limit the competitiveness throughout the entire industry. That is yet to be seen. Free enterprise, clearly not on the table when it comes to shipping from China. What will America do to offset this self created Chinese dilemma?
Lesson from the past. For many years, fireworks were produced in the United States. Some still are. Is this another WAKE UP call for America to get back to what they do best? Producing the highest quality products in the world? It appears that as the prices continue to SKY ROCKET out of control, is it now becoming more cost effective to start producing what we once produced in the states? All these answers are yet to be seen. One thing for sure, it appears there is no end in site to the gouging concept from the Chinese shipping companies. But, on the positive note, it opens the door for many other countries that produce fireworks to expand their production. Like Japan, far superior in professional fireworks over China. Italy, famous for their canister shells for professional shows. Food for thought and an door opening opportunity for other countries and investors to get in on the opportunities being created. How much are you will to pay to celebrate the nations Independence? Independence, a big word, which at one time, America was basically fireworks independent from China.