Rising Chemical prices.
- Thread starter Waxman
- Start date
The price of oil and gas has the same immediate effect on chemical prices as it does pricing at the pump. Most manufacturers and distributors do not recover the complete cost of increases by increasing their pricing. In addition the cost of shipping those products has also skyrocketed. The more accommodating suppliers have chosen to add fuel surcharges to products that they should remove when pricing comes down. Some simply raise the price of shipping now and keep the extra when prices decrease.
Since it seems like the price of everthing we purchase has gone up recently I think a price increase for a wash is almost expected and is accepted better than when pricing seems stable.
BTW. I am always surprised when someone claims to offer free shipping. I have never seen a trucking company ship goods for free - they charge. Regardless of a company's claim, shipping is included in the price somewhere. In fact with shipping included in the price, those companies requiring certain order levels for "free shipping" are really charging those not meeting that requirement double shipping - once when it is included in pricing and the second time for not meeting minimum requirements.
Since it seems like the price of everthing we purchase has gone up recently I think a price increase for a wash is almost expected and is accepted better than when pricing seems stable.
BTW. I am always surprised when someone claims to offer free shipping. I have never seen a trucking company ship goods for free - they charge. Regardless of a company's claim, shipping is included in the price somewhere. In fact with shipping included in the price, those companies requiring certain order levels for "free shipping" are really charging those not meeting that requirement double shipping - once when it is included in pricing and the second time for not meeting minimum requirements.
MEP001
Well-known member
I've noticed in the last few years that every time the cost of fuel goes up around $4 a gallon, shipping and chemical costs increase. Each time, the fuel costs creep back down, but the chemical costs and shipping stays the same. Some of them have been getting away with increasing their prices every time - I think it's time they get called out on it.rph9168 said:
For any chemical company to maintain pricing levels for their products with the current increases in raw materials due to the increase in oil prices in most cases would require either reformulation of their products or decreasing activity of the products.
Most of the recent car wash chemical price increases were in the 5% range although some of the major brands increases total closer to 10% for the year. Anyone knows that is not even close to the percentage increases we have seen due to fuel costs. In my area gas prices alone have gone up well over a dollar from last year at this time representing more than a 40% increase. Other staples like bread, meat, fruit, vegetables, eggs and milk have experienced similar increases. If and when oil prices go down and fuel prices decrease they never seem to go back to their original level. To suggest that chemical companies decrease their price if prices of oil goes down is not reasonable.
Most of the recent car wash chemical price increases were in the 5% range although some of the major brands increases total closer to 10% for the year. Anyone knows that is not even close to the percentage increases we have seen due to fuel costs. In my area gas prices alone have gone up well over a dollar from last year at this time representing more than a 40% increase. Other staples like bread, meat, fruit, vegetables, eggs and milk have experienced similar increases. If and when oil prices go down and fuel prices decrease they never seem to go back to their original level. To suggest that chemical companies decrease their price if prices of oil goes down is not reasonable.
keniniowa
Member
My soap supplier ran a special right before the end of last year. I bought a year's worth of soap. Had to put it on my line of credit(fairly short-term), but doing the math I could have taken two years to pay for it and still been money ahead. Intend to do it again this year if they run that special again.
When freight gets high need to think in terms of cutting down on the number of shipments. When prices are moving up need to get as much as you can at the lower price. Like you said prices never come down as fast as they go up.
And it's so nice to know that on these busy weekends there are multiples of everything on the shelves.
Did have to raise the contents coverage on my insurance policy. Think that was less than five bucks a month.
When freight gets high need to think in terms of cutting down on the number of shipments. When prices are moving up need to get as much as you can at the lower price. Like you said prices never come down as fast as they go up.
And it's so nice to know that on these busy weekends there are multiples of everything on the shelves.
Did have to raise the contents coverage on my insurance policy. Think that was less than five bucks a month.
aberaleigh
New member
At the first of the year one of my soap suppliers went up 2 to 3% and the other one didn't change at all. Because it was only such a minimal amount I didn't change what I charge my customers. Generally for us as long as your ordering close to a $1000 worth of soap we do not charge for delivery. Plus to save on gas we try to schedule our deliveries to hit multiple customers in the area we are headed to. So far the rising gas price hasn't hurt us to bad but if it keeps going up that will change.
