The 2020 Price Rollercoaster

No one likes price increases, no one. However, it seems like lately there are plenty. Many manufacturers have been forced to raise pricing due to an increased cost of materials and or lack of availability. In a pandemic economy, several of the small components that were relatively inexpensive have become hard to come by or have seen a significant price hike. Items such as caps, bottles, and disposable items have all seen a drastic change. Some items have started to become more available again such as hand sanitizers and masks, while items such as wipes and towelettes are still delayed months at a time.

“This pandemic has had a major impact on the exchange of goods throughout the world. Let us think of a supply chain as a supply network. Groups of manufacturing facilities are connected by transportation routes with several storage nodes along the way.

In this pandemic, manufacturers that rely on labor-intensive processes that require people to work closely together have been disrupted because of social distancing requirements. For example, produce that relies on spring harvest might be in short supply come summer due to labor shortages. For other manufacturers, perhaps it will not be labor or raw materials that are in short supply, but the ability to have their product delivered. For example, transportation routes are at risk of disruption if truck drivers become sick. It's difficult to predict exactly where disruptions will be felt the most, but specific supply chains have been affected.” - Samuel Volkin  Johns Hopkins


So what can you do to keep your business running smoothly? First you can order a surplus. Remember when masks and sanitizer were scarce, and all stores were scrambling to fill shelves and meet consumer needs? With as crazy as this year has been and the uncertainty of what's to come making sure you have items on hand is essential for remaining in business. Make sure you have plenty of essential items on hand so that you are not left wondering how to survive in the event of a shortage.

Secondly, take a deep breath and realize that some things are out of your control. When manufacturers are trying to make up business from closures during shutdowns the last thing they want to tell customers is that the prices have gone up or that products are not available. We didn’t like hearing this and we definitely don’t like relaying the message to salons. Unfortunately, it is the cost of doing business and should level out once the world returns to normal. Talk to your customers about the reasoning behind price changes. Proactively addressing these issues will allow them to relate and understand.

Lastly, take comfort in the fact that not all pricing will change. In fact, due to shutdowns, there is more product to move which leads to sales. Heartland has ramped up our specials to help. While some items may move up in price there are more items discounted which just goes to show that old saying “Everything comes out even in the wash” holds true.

Our Business Support Reps are here to help advise you on how you can manage price fluctuations and increase your bottom line. Help is only a phone call away.