The combination of the lack of perfect substitutes, inherent nature of rock being in the ground, and high relative cost of freight really protect rock quarries. Many other mined commodities have national or global pricing because the value is so much higher (e.g. lithium, copper, gold).
Other industries may have fragmented or local production but if there are not other helpful dynamics, that is not enough to create a localized pricing environment.
How common is dynamic pricing in a localized commodities business like this?
Great question.
The combination of the lack of perfect substitutes, inherent nature of rock being in the ground, and high relative cost of freight really protect rock quarries. Many other mined commodities have national or global pricing because the value is so much higher (e.g. lithium, copper, gold).
Other industries may have fragmented or local production but if there are not other helpful dynamics, that is not enough to create a localized pricing environment.
My pleasure! Please be sure to share your piece when complete. Would love to read.