Personal Protective Equipment PPE is becoming a race to the low bid bottom
PPE or Personal Protective Equipment is now synonymous with gloves, sanitizer, mask, cleaning supplies. Everything we need in the new COVID19 economy to make our lives safer.
Over the last 6 weeks my 77 year old mom started using zoom for church, seeing her doctors via telemedicine and watching the grandkids go to virtual school. It has been a whirlwind of events since the Coronavirus traveled from Wuhan China to the America’s and beyond.
One of the most interesting phenomena’s has been the uptick in new suppliers, resellers, manufacturers who jumped into the production/distribution of Personal Protective Equipment products to help combat the spread of the Coronavirus. From 3M increasing their production of N95 respirators to General Motors making ventilators.
I have seen promotional companies, landscapers, contractors, lawyers all jump into the PPE craze. Some have made millions of dollars others thousands and others
Today nearly 2 months later people are still trying to jump into the PPE craze.
If you are considering jumping on the bandwagon take a look at the price points people are now offering to the government. I have seen 3-ply masks as low as $.29 and KN95 for $1.40, and boot covers for $.10. This is not a sustainable business model for the anyone, nor is it very profitable.
PPE has turned into a commodity item and a race to the bottom. This is not a sustainable way to build a business long term.
Factors to consider before jumping in.
1. Do I have a relationship with a client?
2. What is my significant product advantage?
3. Is my inventory competitive price, in stock available?
4. Can I compete with these prices?
Unless you have the products in stock and ready to go you can fall victim to the hype craze and countless hours of wasted time. In this new era there will be plenty of time for building, creating and manufacturing new products. I just don’t believe that PPE should be people’s sole focus.
If you have not already listened to the reason why I hate state and local contracts. Listen now.
Take a look at these prices and see where you stand.