The Commodity Theory

More than likely, most distributors relegate soap to the commodity category because their customers do. It’s not a product that’s sold, as much as it’s a product that customers buy when they need it. At least that’s how many distributors treat soap, making price the determining factor for end users.

“Cost is always the biggest factor in purchasing soap because the customer is buying products that are being thrown away,” says Gary Moorhead, president of The Hewitt Soap Co., Dayton, Ohio.

Manufacturers have tried to make soap more interesting, but in the end it’s the distributor who has to be convinced that the item is something special. “I’ve found that we sell products that distributors are excited about,” says John Manolas, vice president of operations for Earth Friendly Products, Opa Locka, Fla. “If a distributor is really excited, then it has a good chance of doing well.”

The history of the soap industry shows that when distributors stop just thinking commodity and really believe that a product has value, the customer notices, and sales increase.

In the 1970s, bag-in-a-box liquid soap dispensers started becoming popular in the United States, in part because distributors believed that they were better for facilities. Increased awareness about preventing infections and disease brought a new wave of cleaning options for the restroom. Some customers were even afraid to buy bar soap, thinking that it wasn’t as safe as using the new liquid soap dispensers.

However, there are other manufacturers, like Stahl Soap Corp., Hoboken, N.J., that have stayed the course with bar soap and have built a loyal group of customers.

“The liquid soap dispenser manufacturer has been saying that it’s cleaner to use a dispenser than to use bar soap,” says June Stahl, president of Stahl Soap Corp., Hoboken, N.J. “To my knowledge, no one has ever had an illness from using bar soap. I think there was a lot of hype about the necessity of having dispensers and people have realized it’s really not any cleaner.”

Stahl may be right that dispensers and liquid soaps are not more effective than bar soaps, but nevertheless, there is no denying that distributors play a critical role in public perception. “For distributors in any market, the trend toward hand sanitizing means opportunity with every customer they visit,” says Keith Dare, vice president at GOJO Industries, Akron, Ohio.

Attitude Check
“When you think of your product as a commodity, others will think of it as a commodity too,” says Allen Soden, president of DEB SBS, Stanley, N.C. “Distribution can make an impact simply in the area of attitude.”

For example, building owners now see the benefits of making their restrooms presentable and that means increased opportunities for distributors of cleaning supplies, says Soden.

“We want our customers to show off a first-class facility,” he explains. “People should be saying, ‘We’re proud of our movie theater, we’re proud of our dining area and we’re also proud of our bathrooms.”

One of the newest advances in soap technology is foaming soap, which uses a combination of liquid soap and air to make the soap foam into the user’s hand. Foaming soap is less expensive than regular liquid soap due to the ratio of liquid soap to air. It also creates less mess because the dispenser doesn’t drip, manufacturers claim.

“We’ve tried it out with a few focus groups, and people really enjoy it,” says Soden. “It changes washing your hands from something you have to do, to something you want to do.”

In the past, foaming soap was used primarily for people in the medical profession. Surgeons use it because it can get into hard-to-reach places during the course of an operation. However, foaming soap is not to be used for heavy-duty cleaning, says Tom Wirostek, president of Kutol Soap, Cincinnati.

“It seems appropriate for light cleaning,” he says. “It’s intriguing because it’s so inexpensive to make. It has a water-thin viscosity that creates a foam. It can last a long time.”

Soap & Scents, another advance in dispensers from Fresh Products, incorporates an air freshener cartridge with its liquid soap. Every time a person uses soap for washing, the dispenser releases a scent into the restroom.

Doug Brown, CEO of Fresh Products, Toledo, Ohio, says that the new product makes restroom organization simpler for the end user. “A combined soap/air freshener dispenser using a single cartridge ensures both soap and air freshener are replaced in one step,” he says.

Manolas, however, says that Earth Friendly has decided not to invest in the soap/air freshener technology. “I think they should be separate,” he says and adds that customers want to be clean when washing their hands, but may have allergies to certain air fresheners.

Soap manufacturers continue to wrestle over what is best for the customer, and the debate is most intense in the arena of touchless soap dispensers.

“I don’t think the touchless washroom is a fad,” says Moorhead of Hewitt Soap. “In fact, I prefer touchless toilets, sinks and towel dispensers. However, I can’t see a real advantage to touchless soap dispensers. The point of sanitation occurs when the person gets the soap, so it doesn’t really matter if it’s touchless or not.”

But Soden says there is a place for touchless technology in the soap industry, and that customer desires need to come before manufacturers preferences.

“I think it absolutely is a benefit,” he says. “There is a great public concern about touching things in the bathroom. It’s not a perfect system, but in certain environments they’re great.”

Old or New - Wash
Stahl Soap and other manufacturers have decided not to ride the trends of the liquid soap industry, but rather stay with the effectivenes — and low cost — of bar soaps.

Hewitt Soap has developed a new dispenser that uses bar soaps, but in a different way. The dispenser breaks down the bars into small shavings for easy washing.

“Actually, it’s an idea that has been around a long time, but we kind of reinvented the wheel,” says Moorhead. “For many years, before liquid soaps became popular, the dispensing process used a bar soap that was broken up by a crank. But it required two free hands to operate and wasn’t very effective.” The new system, called the VT Soap Master, uses a lever-operated system that only requires one free hand.

Two issues that all soap manufacturers agree on are the importance of washing and the significant part that distributors can play in conveying that importance to customers.

“The most important message is for people to always wash,” says Stahl, emphasizing that disease and infection can easily be avoided by washing.

Soden adds that washing reflects a person’s lifestyle. “It’s a matter of wellness, and distributors can do so much to properly educate the public.”