Soaps and Hand Sanitizers: Consider the Costs

Few products have been on a roller coaster of supply and demand like soaps and hand sanitizers in recent years. The early days of the COVID-19 pandemic created a huge surge in demand for these products, and the demand has been strong ever since. Supplies have begun to catch up with demand, but availability remains a problem. All of these factors—and more—have affected their costs. Read on to explore the ups and downs of these costs and how to get the most hygiene for your money. 

What Are Short-term Factors Affecting the Costs of Soaps and Hand Sanitizers? 

Much of the U.S. supply of soaps and hand sanitizers are manufactured in the United States, and this is good news for supply chains and cost stability. However, most of these products rely on a couple key ingredients—such as ethylene—which leaves their manufacturer vulnerable to disruption. For example, a recent freeze in Texas and a fire at a single ethylene production plant sent ripples through the supply chain.  

In normal times, such a disruption could probably have been absorbed by suppliers, and no shelves would have gone unstocked. Recent years have been far from normal, however. The pandemic seriously rocked both supply and demand—just as one peaked (demand), the other crashed (supply).  

While demand has leveled off somewhat, it will likely remain high. Most of those antibacterial sanitizing stations installed in 2020 will likely stay up and require refilling. In addition, many workers acquired better habits and are practicing better safety and hygiene than before. 

Supply remains a problem. Labor disruptions are still being seen up and down the supply chain—from the factory to transportation to retail—and these are causing shortages. And with shortages come cost increases. The best way to deal with higher prices is through being more strategic in your purchasing decisions. We’ll get to that in a minute. 

What Are Long-term Factors Affecting Costs for Consumers? 

Perhaps the biggest factor affecting long-term cost for hand soaps and sanitizers is the dispenser. Often, consumers buy a soap or hand sanitizer that uses a particular dispenser—these are indeed some of the best products on the market. However, sometimes buying in this way can result in losing a degree of control over your costs.  

Once committed to a set of dispensers, you are committed to buying the refillable products. If those prices go up, you might be stuck paying them if you’re running low on inventory. The cost of replacing your entire system might be prohibitively high.  

Is there any good news to be had about soap and sanitizer costs? 

Thankfully yes! There are ways to protect yourself from price surges. Soaps and hand sanitizers are both long-lasting products, and if you can buy them in bulk—at a discount—then you can be assured that you will be able to use them. A small and somewhat obvious caveat: as with every purchasing decision, you should only buy products that you absolutely require, so a close examination of your needs is useful for making this decision. There is no need to stock up or hoard if your needs don’t call for it.  

Fortunately, storage space is not a major problem, either. Refillable products are already space-efficient, so long-term planning is a good strategy: it won’t occupy too much shelf space.  

Another positive note is the fact that there are quite a few soap and sanitizer manufacturers and wholesalers. If you find a shortage with one vendor, then you might find luck with another. Depending on the dispenser you have, you may be able to find a lower-cost alternative to a brand-name hand soap or sanitizer that will still work.  

How are suppliers adjusting to today’s supply and demand challenges? 

Some suppliers are doing better than others these days and are managing to keep shelves stocked and orders filled. Here are some of their tricks. 

• Multiple sources: The best suppliers are careful to have more than one source for their products. This protects them from disruptions and shortages that can affect smaller, less careful suppliers.  
• Inventory: A good supplier will keep a significant inventory of products on hand. This, too, ensures that supply chain problems don’t prevent them from filling orders.  
• Information: A full understanding of the market helps suppliers navigate tough times, as well. Being aware of trends in manufacturing and buying stock when prices are low keeps their warehouses filled.  

• Negotiation: A good supplier will also likely be able to negotiate discounts with manufacturers. Less established suppliers might not have those contacts or that purchasing power. A good supplier might also be able to learn about overstocks and jump on them.  

What are surprises to look out for in purchasing hygiene products?  

With so many soap and sanitizer products on the market and so many sellers pushing them, it can be easy to get confused. Here are a few traps to avoid. 

• Commitments: As you saw above, buying a soap or sanitizer that is dependent on a certain dispenser can limit your options in the future. Consider your needs and long-term plans carefully before going down that road.  

• False marketing: Some hygiene products promise the moon but only deliver your standard suds. If you need a product for sensitive skin or for dry hands, make sure the product has a proven record of delivering it.  
• Panic buying: While it can be tempting to hoard goods when you find them, it usually isn’t necessary. The number of suppliers working in the field nearly guarantees that you will find the hygiene products you’re looking for.   

The Top Tips for Saving Money on Soap and Hand Sanitizers 

The best suppliers can ensure that you stay well stocked on hygiene products, even during a time of shortages and uncertainty. Benchmark experts can walk you through some of the different options.

Need help deciding which hygiene solution is right for your operation? Talk to one of our product experts.