ASSOCIATIONINSIGHT
Portable Sanitation Association International News
BIWEEKLY EDITION APRIL 14, 2021
Page 13
Supply Issues Create Challenges and Opportunities…continued from page 12
It appears most prices will not go down any time soon. So having things on hand will ensure you don't have to
say no to business opportunities. Even if having extra equipment on hand isn't a good choice in light of your
firm's situation, at least make sure you have enough consumables like deodorizer and toilet paper handy.
• Consider your risk tolerance. There is a positive surge in demand for portable sanitation services right now.
Weigh the pros and cons of adding equipment that is more expensive than usual to your fleet. Are you willing
to raise your prices to pay for it and achieve a reasonable return on investment? If not, what are the risks of
waiting to buy equipment? If you can't meet your customers' needs, will your competitors step in?
• Analyze the alternatives. Sometimes operators consider buying used or building their own equipment. This
year previously owned items are likely to be in short supply also, especially as the season progresses. If you
consider buying used, put some math behind deciding whether it is the best path for you. The initial cash
outlay may be lower, but how long will the equipment last? Does it reflect well on your brand? Can you get
parts if you need them? If you try to build your own hand wash units, remember that plastic is expensive for
everybody. What will costs for materials be? When deciding whether to go forward, be sure you figure in your
labor and opportunity costs as you determine whether this strategy will actually be worthwhile.
Longer term, price increases that we are currently facing could
be a back-handed blessing for portable sanitation. As I noted in
a recent conversation with Pete Hutchinson on his April 3 Get
Flushed podcast, current circumstances are causing the prices
for everything to rise. Portable sanitation customers are more
accepting of price increases for our products and services because
the prices for everything else are also going up.
Meanwhile, the pandemic has made people more willing than ever
to pay for adequate portable sanitation equipment and service.
Operators can leverage the situation to educate customers, raise
prices to more sustainable levels, and demonstrate how a high
level of quality and service create better outcomes. Workers on job
sites are happier and safer. Event attendees stay longer and spend more money. Everyone is healthier. We all win.
Supply shortages will work themselves out eventually. How delightful it would be to come out on the other side of
2020–2021's challenges with customers who see portable sanitation as a valued alternative. Then, perhaps, they
might also be willing to treat it as one of the important services they strategically seek and pay for, rather than an
afterthought to be obtained at the lowest possible price. That, friends, is the opportunity in front of us. v
PSAI Featured in Get Flushed
Podcast
G
et Flushed is a podcast that focuses on portable
sanitation. Originating in New Zealand, host Pete
Hutchinson has scoured the world for experts to chat
with about the realities and stories that make our industry
great. Recently Pete and Get Flushed became international
members of the PSAI. He invited PSAI Executive Director
Karleen Kos onto the show to talk about the role the
Association plays in promoting portable sanitation globally.
Check it out!