chemical price increase!

[sticky]

we just got hammered with a 25% increase in our chemical prices! yes, we understand raw materials are through the roof, but this hurts. anyone else experiencing the same from their supplier? we order directly from the manufacturer to save on distributor mark-up, but this one is tough to swallow. are your checmical prices going up in leaps and bounds, too? any input would be helpful. thanks in advance.

 

[rph9168]

Almost all chemical companies raised prices the first of the year and I understand that due to the dramatic increase in the price of oil there will be another one coming soon. 25% seems way out of line. Prices at the first of the year went up around 5-7%. Look for another increase like that one this summer or sooner.

 

[sticky]

chemical price increase

yes, we've experienced the same 5-10% increase or so over the last couple years from this manufacturer, but nothing like this. interestingly, this latest increase was coupled with a local distributor starting to carry thier line. the timing of the whole scenario isn't passing the "smell test" to me, but i'm trying to remain objective about the current cost of their ingredients.

 

[soapy]

Blue coral went up 4.1% on March 1.

 

[raisetheprice]

Things will continue to go up...I just put $4.09/gallon diesel in my truck. It's time to go up on your wash. If I put $70 worth of fuel in my vehicle, a $10 carwash is a bargain. I had a 6 yard load of sand delivered...$240 FOR SAND!

 

[madscientist]

a free 6 yard load of sand deliveredwould have cost you $210.00

 

[sticky]

...upon further review

....it appears price increases range from 21% up to 38% on the products we order form this manufacturer! looks like it's back to the drawing board to find another source. too bad as it took us about 2 years to fully move away from our previous "boutique" priced chemicals as we were very involved with testing and tweaking to ensure quality didn't suffer with this previously less expensive line. thanks all for your input.

 

[Greg Pack]

I just had my first $100 plus fill up yesterday- ouch!

 

[robert roman]

There are at least two factors that will probably continue to create upward pressure on chemical prices.

1) Increased chemical demand from overseas markets, in particular China and India, combined with reduced domestic capacity have allowed chemical raw material suppliers to significantly increase prices.
2) Crude oil and natural gas, both of which are used as chemical feed stocks and sources of energy in the chemical manufacturing processes, have increased dramatically in price and remain volatile.

There are several things you can do to help alleviate inflationary pressures.

1) Forget about chemical prices and buy value.
2) Focus on cost per car or cost per minute to operate the car wash and not cost per container.
3) Look for a good chemical distributor that not only provides high quality chemicals but also value-added services.
4) Watch all costs and continually look for ways to maintain volume and increase productivity.

Hope this helps

Bob Roman
www.carwashplan.com

 

[Mr.Aap]

It appears you have lost what ever your discount you had before the distributor took over your area.....I have never seen an increase of that magnitude....3 to 5 percent is normal....