7 Valve Pricing Factors
You have found the valve you need with several distributors and are ready to ask that all-important question, “What’s my price for this valve?” It’s a simple question, one that we ask dozens of times a day during the purchases we make. So, it seems like the answer to the question “What’s my price for this valve?” should be simple and straightforward. But it is not. Not only can you get widely disparate pricing for the exact same valve from different distributors, but the pricing you receive today from a distributor could vary widely from the pricing you receive just a few days later.
The reality is that a valve’s price can vary greatly based on:
- Valve Design and Complexity
- Materials Used
- Manufacturing Processes
- Quality and Testing
- Industry Demand and Market Conditions
- Brand Reputation
- Distributor Pricing Policies
In this article, we will explore these key elements that influence the price you pay for an industrial valve and shed some light on the reasons behind those price variations that can make your job of cost management so challenging.
Valve Types, Design, and Complexity
Think of a simple categorization of valve types—gate valves, globe valves, ball valves, butterfly valves, and check valves. We use these terms every day. But when you think about it from a pricing standpoint, you notice that each of these valve types has highly unique design features and functions. The more intricate a valve design, with features like extended bonnets, stem extensions, or actuation systems, and the more time and material that are involved in the manufacturing process—the more the price rises. Even things like seal type, seats, and trim materials can significantly add to the total price of a valve. The more intricate a valve design, with features like extended bonnets, stem extensions, or actuation systems, and the more time and material that are involved in the manufacturing process—the more the price rises. Even things like seal type, seats, and trim materials can significantly add to the total price of a valve. And don’t forget pressure. The higher the pressure the valve must handle, the more specialized the material and engineering the valve requires. That adds to—you guessed it—price.
Valve Materials Used
Metal is the key component in an industrial valve, and industrial valves can be made from metals as relatively inexpensive as iron or carbon steel or from expensive and exotic alloys like Hastelloy or Inconel. The metal used to make an industrial valve is determined by factors such as fluid compatibility, temperature, pressure, and the environmental conditions the valve will be operating in. Metals are often traded on world commodity markets, so their price can fluctuate in real time based on world demand and availability.
Manufacturing Process
How a valve is put together can greatly impact its price. Typically, valves are made through a casting, forging, or machining process. Casting tends to be a less expensive manufacturing process than forging due to the processing steps involved. Machining can be highly engineered and precise and can significantly increase the price of a valve
Quality and Testing
You want a valve that works the way it should reliably and safely. So, the valve you need may undergo rigorous testing to ensure that it meets industry standards and certifications such as API (American Petroleum Institute) or ISO (International Organization for Standardization). To ensure these standards are met, valves may undergo non-destructive testing, pressure testing, and a variety of material inspections. All these tests, while ensuring quality and safety, drive up the price of your valve.
"Manufacturers rely on extensive and complicated
international supply chains to bring finished valve products to the market."
Industry Demand and Market Conditions
Supply Chain issues can rear their ugly head at any moment in the industrial valve chain. Manufacturers rely on extensive and complicated international supply chains to bring finished valve products to the market. When one of those links in the chain fails—and they often do—it can negatively impact material availability in a hurry. That’s when the old laws of supply and demand take over—when availability shrinks, prices almost always rise. Other market conditions such as inflation, currency fluctuation, transportation expense, and energy prices can significantly impact the price of your valve.
Brand Reputation
Some brands are just more expensive than others. Brand reputation—real or perceived—can significantly impact your valve’s price.
Valve Distributor Pricing Policy
Valve distributors make money by marking up a valve’s price from a manufacturer and charging that to you. Good distributors use that marked-up price to provide you with an exceptional buying experience. However, some distributors use “false escalators” to raise pricing beyond reasonable and fair markups for the service they provide. Good valve distributors have market-based and objective backup for price changes—especially dramatic ones—and should be happy to provide you with that information.
You might be thinking, "This is all great, but you still have not told me what my price is for this valve." The real answer is it depends! But good distributors have factored in all the variables we explained above. They should be able to price your specific valve inquiry quickly, accurately, and fairly.We hope this article helps you to gain a better understanding of how these variables shape the price of a valve, as well as equip you with the knowledge to sniff out a bad deal.