Today I ran into a post written in an awesome group that was first created to help everyone figure out where various items like T.P. , eggs, and milk. This post was talking about a place to find it locally since the stores are always out. Our company was graciously tagged as a place that you could get it.
The post was very well written, and the writer brought up a great point about price gouging. The term price gouging had been on my mind alot lately now that I have found myself in the front row of the wildest spectacle on earth, the alcohol and sanitizer raw ingredient marketplace. Im smack dab in an alcohol bidding war, that starts at 7a and ends around 9-10pm ET.
Let me take you back a second. Route 40 Wellness is a sister business to Sudz Fundraising and supplies products for several fundraising programs that Sudz offers for youth sports programs, schools, and other non profits. When Corona came and schools announced they were closing, then the youth sports went on pause we were like crap! What are we going to do to keep going here?
We made a quick test batch up for our office using a light alcohol heavy essential oil mix. I threw out the product for a few other friends and family that believe similarly to me about the power in essential oils for their ability to regulate and boost the immune system, and their viricidal properties. Before you know it everyone wanted some.
Then came the several requests to make the 60+% so it complied with the current recommended CDC standards AND made your hands smell good and stay moisturized. We did.
Then more requests came in about the new updated CDC recommendation of 70% +. Could we make that? We did it.
Ok now about the price gouging. This topic has been eating at me as business owner, and as a consumer, for a few days. I kept thinking, “How can i explain why something that normally sells for a $1-$2 a bottle is selling for $20 a bottle in the last 60 days.”
Here’s what I came up with I hope it helps
Just to make sure, I did a quick recheck fo calculate our margins, to make sure the numbers were accurate. After the smoke cleared, they happen to be the lowest margin of any product we make or carry.