Supply and demand issues, rising cost of water, and with the spread of the Delta Variant, Costco is playing it safe. By the way, it’s finally happened! Costco has graced the Ozarks with its’ presence! Not only are they offering employees higher wages and benefits while selling low-cost food and necessities in bulk at competitive prices, but they are already limiting customers’ purchases due to the rising cost of water, toilet paper, and cleaning supplies! Why? Why would they do this?
Just when we thought the days of toilet paper shortage were behind us (no pun intended), Costco is taking precautionary steps by limiting key items and consumers’ ability to over-purchase certain toiletries. Costco Chief Financial Officer, Richard Galanti, is taking a cue from over a year ago where we faced a shortage of merchandise. Even though there is plenty of merchandise currently, delivery delays have been an issue due to changes in the trucking industry, lack of workforce, changes in hiring, and delivery demands! All of which are pushing the cost of water, toilet paper, paper products, and plastic products sky high.
In short, Galanti is doing his best to stay ahead of the curve. After seeing between a 3.5% and 4.5% increase in inflation on certain products this quarter, the membership-only warehouse retailer seems to be playing it safe.
What the Great TP Shortage of 2020 has Taught Us
One of the stranger side effects of COVID-19, consumers engaged in “panic-buying” and started stocking up on toiletries, water and other necessities! Shelves were picked clean, suppliers fell behind, and the cost of goods like soap, surface cleaner, bottled water, and disinfectant rose sky-high due to the rising demand.
Like a bridge designed for small cars and bikes to safely cross, imagine driving a semi-truck FULL of TP across this structure. What was once built to hold a couple of thousand pounds was suddenly expected to be able to shoulder 40 tons! Of course, that bridge would collapse, and the same could be said to our supply and demand chains in 2020.
Here’s what we learned about buyers during a crisis or shortage:
- When fear within people increases, they tend to want to buy more stuff – this is a stress response.
- When there is a shortage, people want to buy more of what’s depleted – again, stress response.
- The ripple effect of manufacturing and the production of goods extends far beyond what we originally thought during the 2020 crisis (we may be facing repercussions of this for the next decade or two).
- While being prepared is a wise and good thing, panic-buying causes more damage to an already-escalating situation. In other words, there is a difference between being prepared and being in survival mode!
- Our economic system is much more fragile and easily influenced than what many of us originally thought.
But What About The Rising Cost of Water? Why Limit Water Purchases?
According to waterworld.com, water rates have already increased by 43% over the last decade. This has been caused by several factors, but aging infrastructures in the East, drought to the West, and the work from home trend has all impacted the rising water costs. COVID has only seemed to exacerbate the situation. In fact, according to CBS news, water rates are currently rising faster than inflation.
As such, it’s no wonder Costco is limiting the number of bottled water consumers can purchase. The Delta Variant has left many wondering if we are going to see a repeat of 2020’s shortages as supply and demand fluctuate.
As of right now, shoppers can buy up to two packs of Kirkland bottled water (the Costco brand) if available. Costco’s twitter account has already seen a few unhappy customers.
In summary, there is a difference between being prepared and panic buying. If you are in the Ozarks, and don’t have a home filtration system whereby you and your family can get clean, filtered water straight from the tap, we would do one of two things:
- Purchase a home filtration system immediately.
- Head to Costco to get yourself some bottled water now.
Mind you, bottled water is NOT sustainable in the long term. There are many negative side effects of what drinking bottled water does to one’s body as well as the environment. Not to mention, it is WAY more cost-effective to get a water filtration system installed in your home! With low maintenance (only needed to change the water filter once or twice a year), not only will you not have to worry about purchasing bottled water from stores with limited supplies, but you’d be saving money as well!
If you’d like a complimentary hassle-free quote on a water filtration system in your home, don’t hesitate to give us a call! (417) 881-4000. We will have one of our techs come out and provide you with a free quote!
About Aquasani Water Purification Systems
Aquasani is an authorized dealer for Rainsoft, WaterLogic, & JavaSmart. Based in Springfield, Mo., and at Lake of the Ozarks / Osage Beach in Missouri, Aquasani services areas in the Ozarks including Osage Beach, Camdenton, Aurora and even Jefferson City. In essence, we service Mid-Missouri, Southwest Missouri, and Northwest Arkansas, and have been servicing these areas since 2004. We provide home water softener systems, drinking water filtration systems, whole-house air purification systems, and problem-solving water filtration systems for homes and offices. We also service other water softeners like Culligan, Sterling, Hydroquad, Pro-Series, and Whirlpool to name a few!
Aside from our purification systems, we also sell all-natural cleaning products and household items which are environmentally friendly and low-cost.
We specialize in water filtration and purification for both commercial businesses and residential homes. If that isn’t enough, we provide free trials for our water cooler services. If you would like a free estimate, schedule an appointment with us by calling (417) 881-4000 or (573) 692-4009 if you are in the Lake of the Ozarks area.
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