Dealing with middlemen
20 August 2008 | Steve Bagshaw
By Paul Snell
News of record profits for mining firm BHP Billiton is not likely to be celebrated by purchasers, with the rise in income thanks to the boom in commodity prices.
But even BHP has been hit with cost increases of more than $1 billion, shouldering the rising prices of fuel, logistics and explosives. The firm said its supplier relationships had helped mitigate these.
Unless you buy direct from the source, middlemen will have a great deal of influence over how large these increases will be to you. What’s the best way of handling this?
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