Hand Sanitizer Sales Go Crazy. Please Read.
It is important for all of our clients inquiring about hand sanitizer to read the following short post. It will help you explain to your clients the situation taking place.
These are crazy times.
I do not need to tell you that the world is in disarray. Eveything is upside down, so the ordinary rules and details no longer apply. It will eventually return to normal but not for months.
We know this as we deal with China on a daily basis, they are just now flattening and reducing the levels of Corona Virus. This started January 1st, they will be “new normal” by the end of April.
China, who acted fast and with great action has taken 5 months to get back to the “new normal”. Expect the same to happen here.
In regards to all promotional products but in this specific case, alcohol-based hand sanitizer. Here are some key points to pass along to your customers and to absorb.
- Since virtually all alcohol hand sanitizers are made in China. This is still the best and only place to source them from at this time and for the foreseeable future.
- As you know all domestic supplies of alcohol based hand sanitizers have been wiped out. Even hospitals and institutions are in SHORT SUPPLY. It is estimated that in the month of February more than 5 months of the average supply of hand sanitizer were bought.
- Because the factories in China were closed for an extra 4 weeks after Chinese New Years any domestic (USA) warehouse for hand sanitizer lost a month or longer of supply due to the factory opening delay.
- Borders closed to passenger flights poses a huge problem In the hold of all passenger planes are shipments of goods from China to USA. This method of shipping is now gone.
- UPS, DHL and FEDEX commercial goods are the only commercial goods flights. This means 2 things. It is slower to get goods out and is more expensive. Plus alcohol-based hand sanitizers are considered dangerous goods due to alcohol content. It always costs more.
- Demand is unprecedented. Demand is overwhelming supply. It is that simple.
What we are doing to help.
- We are working with the factory to bring in as many styles as we can, However, forget about cutesy packaging and smaller quantities.
- Go for larger sizes such as 8.5 ounces rather than 1 ounce as it is far better value. People will want lots of this.
- As of today, our production is 5-7 days but shipping can be as much as 12 days (versus a normal 3 days)
- Minimum order and prices. Our minimums are 2500 (with 1000 as a LTM). Factory will not do less. Prices are up but average cost for airfreight on dangerous goods is almost $1 each, even at 2500 units!
- We are working on a flat 20% margin. We are doing our best.
Thanks for reading.