Pricing Factors For PPE.
Clinical Supplies is unequivocally committed to offering protective products at reasonable prices.
Price Gouging is the practice of raising the price of existing goods in response to shocks in (usually) supply. A price tag alone does not constitute price gouging. Our masks are acquired at an immense premium, which is why there are so expensive. Prices will continue to fall as supply normalizes.
Price gouging is an unacceptable practice. That being said, we often receive questions regarding why our mask pricing is more expensive than pre-pandemic circumstances. We are a business, but we try to keep our margins razor-thin to ensure adequate product distribution. There are significantly more considerations that we take into account when pricing our equipment, including complex economic decisions that allow us to ensure those who need our equipment the most receive it. Hopefully the below answers any questions, and if not please reach out to our support team!
Currently, 3M has been prioritizing the needs of front line healthcare professionals and those that are vulnerable to this pandemic which we strongly agree.
1. Healthcare Prioritization.
3M Is prioritizing, as it should, the protection of healthcare professionals. This means that there is little available stock to be able to sell to the general public, driving price upwards.
2. Skyrocketing personal demand.
The huge demand for PPE has meant that 3M and KN95 masks are in greater demand than ever before. Because of this price rises to ensure that there aren't massive supply shortages. However, price ceilings and price gouging laws (for better or worse) mean that there are widespread shortages. This drives up our cost-of-acquisition.
3. Freight and Supply Costs.
Shipping and moving masks between distribution centers in a sanitary way means that freight costs have grown exponentially. Add in the labor shortages, hazard and overtime pay, the cost to ship masks becomes much higher.
4. Putting It All Together.
Here is the simple fact. We are not happy with our prices either. We are constantly striving to find cheaper masks that we can offer to the general public, and have actually been able to lower our prices recently. It is very easy to assume by looking at our website that we get these masks for nothing and sell for a massive profit, but that is not the truth. Simply put, our prices are high because the cost of acquisition is high.
While the full explanation of price changes would take a significantly more detailed and complex walk through we hope that this serves as a quick insight into how we price our equipment. All of the above information is verifiable via quick internet searches.
If you would like to speak with someone more comprehensively regarding the economics of acquiring masks and please feel free to reach out to us.
The Clinical Supplies USA team.