Most of us drive into a gas station and are hit with sticker shock as the price of gas inches higher with little relief in sight. Reportedly, crude oil prices have reached an all-time high, forcing manufacturers and distributors to increase prices — a practice that will certainly impact cleaning budgets.

Cleaning managers should brace themselves as they are forced to tighten the purse strings on budgets that are already worn thin. As oil prices climb, manufacturers will be forced to pass some of their expense down to end users. From the plastic containers to the products themselves, it is becoming more expensive to manufacturer cleaning products. Large manufacturers have done what they can by practicing sustainable programs, but sooner or later, the impact of oil will be difficult to absorb and cleaning managers will feel the pinch.

Distributors are already struggling to compensate for higher pricing by offering value-added services to their customers. Some distributors have boldly decided to absorb price increases in an effort to better service their customer, but if a company intends to stay in business, this can only be done for so long. Free shipping might soon become a thing of the past and bulk shipments — at a price — might take their place. Although emergency services won’t fade anytime soon, end users might notice a more substantial bill in exchange.

Look for ways to conserve budget dollars. Streamline pricing and plan ahead so orders can be made in bulk and emergency services can be eliminated. Evaluate product usage and regulate inventories.

Product increases are right around the corner and cleaning managers who prepare and compensate for the increases have the best chance of survival..




POSTED ON: 7/1/2008