According to Kodak, the unprecedented rise in silver – along with escalating pulp and petroleum costs – necessitates that it structures its pricing in a way that responds to the rapid fluctuations in today’s commodities market.
"We’ve seen some very steep curves in commodity pricing recently, including an extraordinary rise in cost of silver," said Brad Kruchten, President FPEG, and Kodak Senior Vice President. "As such, we need to adjust our own pricing on a more frequent basis to deal with these market fluctuations."
Because a majority of the silver contained within the company’s color film and paper products is removed during processing, the company has been able to work within certain industry segments to implement a closed-loop variable pricing structure to mitigate the affect on end-user pricing.
"Kodak is committed to the imaging marketplace," added Kruchten. "This adjustable pricing model is a critical component in today’s volatile commodities market for the large-volume production of consumables such as film and paper, enabling us to continue to serve our customers with the quality products and services they have come to expect from the Kodak brand."
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