Lot Size

Wool Sellers opt for smaller lots - Weekly Times Now http://bit.ly/ydMdNr

“Woolgrowers are selling more bales in smaller lots despite the extra cost, to the annoyance of the auction room buyers…..it was worth remembering small lots on a per-bale basis were more expensive to handle, test and display. There were also additional costs to the buyer in post-sale handling charges”.

It is true that single bale lots are a nuisance; however there are not many cost incentives to make larger lots. The largest costs are broker driven costs such as the broker selling charges to the grower and the post-sale charges to the buyer; all on a per bale basis. The broker also places heavy charges for bulk classing and interlotting. Then you add dumping, freight, shipping etc. on a per bale basis, there is not much of an incentive to increase the lot size!


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