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Chemical question
- Thread starter carnut2
- Start date
robert roman
Bob Roman
QualChem is like all the rest, carwash chemical is a commodities market.
Commodity has widespread demand but manufacturers can do little to differentiate product.
A good analogy is cereal and carwash soap.
National brand makes corn flakes containing corn, sugar, filler and preservatives with retail price of $4.00 a box and it tastes great.
Regional brand makes generic corn flakes contain corn, little less sugar, preservatives but “more filler material” priced at $3.00 a box and taste is ok, not great.
Carwash soap is made by mixing fat or oil with water solution of hydroxides, sodium for harder soap or potassium for softer. Chelating agent is added to prevent scaling (redeposition of dirt).
Soap manufacturers differentiate by creating a “proprietary” surfactant blend in formula or using color or scent.
Low pH soap may contain proprietary surfactant blend, citric acid and detergent grade alcohol like in making liquid soap.
Here, a bathtub blender might add more water to high pH soap which runs up the yield of soap per pound of oil as well as using something cheaper than citric acid in low pH soap like ABF.
Thus, bathtub blender attempts to create sustainable competitive advantage by means of cost (production and economic distance of delivery).
Besides specialty carwash products (i.e. tri-foam) and “proprietary” formulations, soap is soap.
Perhaps as important as price is can you get enough of the right products at the right time? Will delivery truck show up on the wrong day? Will order be delayed because one item is out of stock? How will supplier prioritize receipts, manage returns or make seasonal changes?
Commodity has widespread demand but manufacturers can do little to differentiate product.
A good analogy is cereal and carwash soap.
National brand makes corn flakes containing corn, sugar, filler and preservatives with retail price of $4.00 a box and it tastes great.
Regional brand makes generic corn flakes contain corn, little less sugar, preservatives but “more filler material” priced at $3.00 a box and taste is ok, not great.
Carwash soap is made by mixing fat or oil with water solution of hydroxides, sodium for harder soap or potassium for softer. Chelating agent is added to prevent scaling (redeposition of dirt).
Soap manufacturers differentiate by creating a “proprietary” surfactant blend in formula or using color or scent.
Low pH soap may contain proprietary surfactant blend, citric acid and detergent grade alcohol like in making liquid soap.
Here, a bathtub blender might add more water to high pH soap which runs up the yield of soap per pound of oil as well as using something cheaper than citric acid in low pH soap like ABF.
Thus, bathtub blender attempts to create sustainable competitive advantage by means of cost (production and economic distance of delivery).
Besides specialty carwash products (i.e. tri-foam) and “proprietary” formulations, soap is soap.
Perhaps as important as price is can you get enough of the right products at the right time? Will delivery truck show up on the wrong day? Will order be delayed because one item is out of stock? How will supplier prioritize receipts, manage returns or make seasonal changes?