What does a weighted price increase mean?

Barry

Barry

Paint Fanatic
Staff member
Here is the answer to the question I have been getting weekly from several shops and I just assumed everyone knew what this was as be an industry standard saying for years.

“What doe a weighted price increase of say 8% mean?”
Scam at best? No just trickery!
Here is what is done and I’m going to use what a sandpaper company did about 8 years ago.
A- mover the 6 inch da paper 15% increase.
Top line file and hog paper another A- mover 15%.
Wet paper a B- mover 8%.
Dry sheets a C- mover 3%
And other misc. items that were average movers 2 to 5%.

So just picking a number as I don’t remember exactly the weighted price increase was stated at around 5 or 6% and this sounds a whole lot better than 15%.
Reason this is coming up now in last year there have been a number of price increases with the majors of 2-3 times.
 
The wall street journal last few days
Ppg has a ton of problems including lack of profit as a minor problem with other things. Much bigger going on.
A criminal investigation, and major
Shareholder trying to force a major sell-off or separation.
 
The pressure to use cheaper materials intensifies every year. Also we are getting stingier with making paint, time was you could afford to put some mixed color back on the shelf, today, we sometimes don't even have enough left to fill a touch up bottle.

All that just to break even on material, or worse.
 
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