Supply chain issues are the topic du jour. We’re all familiar with the shortages of oil, gas, computer chips, lumber, and, most recently, baby formula. Back in April 2020, at the height of COVID-19 uncertainties, massage and bodywork product wholesalers were already predicting their future supply chain woes.
So what immediate and long-term impacts did these shortages have on their businesses back then? What about now? Were certain products and supply chains impacted more than others? And is the supply chain still under duress, or is it business as usual today? For answers, Massage & Bodywork spoke with four industry experts to understand their supply chain dilemmas and to see how they’re maneuvering through the new normal of post-COVID restrictions and supply shortages caused by Russia’s war on Ukraine.

Freight and Cost Issues

Teddy Lester, founder and CEO of The Spa Mart in Austin, Texas, says the supply chain shortage hit home for his company soon after the onset of COVID-19, starting with personal protective equipment (PPE) items and products typically used in the medical industry. “For the past 18 months, the challenges have been [rising prices] and freight costs,” he says. “We strive to offer our customers the best pricing; therefore, we have spent a significant amount of time working with our existing vendors and finding new vendor partners to fulfill their needs.”
Angie Patrick, head of distribution development and key accounts at Oakworks, Inc., agrees. “In my roles within massage distribution spanning the past 22 years, I can tell you the most recent supply chain concerns began to emerge just as the country was going into isolation from the coronavirus,” she says. “It was then that the glimpses of concern began to emerge, and the beginnings of the challenges ahead began to take form.”
As a US manufacturer, Oakworks is not as heavily affected by import challenges like other businesses. Although some of their raw goods come from overseas, Patrick says, they began beefing up stock in the past 12–18 months. “That said, any business or brand that relies heavily on inbound container cargo from the Indo-Pacific, as well as from the Mediterranean and Eastern Europe, is subject to inconsistent deliveries and inbound goods being held out at sea or in port,” she says. “The geopolitical climate in these theaters is currently causing disruption to both import into and export out of these regions.”

The Oil Shortage in Treatment Rooms

One segment of products being highly impacted is oil that translates into body-care products. According to Kyle Rimbey, national sales manager at Sacred Earth Botanicals in Eugene, Oregon, there has been a scramble to find alternative organic oils to replace sunflower and safflower oils in their products due to Russia’s invasion into Ukraine. “Because Ukraine is the world’s largest exporter of sunflower oil and nearly all our products are based on sunflower oil, . . . a lot of product testing and reformulation [is needed],” he says. “The shortage will likely be felt for years due to it being an annually harvested agricultural product. It is hard enough to just get oil these days, but as we are USDA certified organic, we have an even more difficult time finding certified organic oils. With no end in sight to the war, it may take several years for the oil market to recover.”
At The Spa Mart, Lester is also feeling the pinch when it comes to obtaining sunflower and safflower oils, but he is also struggling to get disposable items, such as wax sticks and wax rolls, which are taking longer to arrive—or the cost is just too much for their spa partners to absorb. Rimbey at Sacred Earth Botanicals agrees and has experienced “numerous supply chain issues, from bottles, pumps, and raw ingredients, since the onset of the pandemic, as well as inbound and outbound freight delays. “We also have to get new labels for our products due to the inclusion of new ingredients,” he says, “[and we] had to start using some new suppliers—and they have their own challenges.”
Diego Pekarek, CEO at Truth Treatments, in Broomfield, Colorado, is in the thick of the supply chain shortage too, although he comes from the skin care side. And, as he does business in Spain as well as the US, he recently hired a local operations manager to handle supply chain logistics due to a reduction of shipments out of China and “incredible” shipping price increases, which skyrocketed from the norm of $2,300 to a whopping $23,000 during the “crazy” 2021 Christmas season. “Right now, the biggest challenge is everything that is coming from China and also [with] some key ingredients like Retinol,” he says. “[These events] forced us to hold larger inventories to avoid a shortage [of] components and raw materials. All of this translates to [needing] more working capital.”
To navigate the extra time needed to obtain product and supplies, Lester says The Spa Mart is more diligent at anticipating needs. “Freight costs and shipping lead times have caused some disruption to new spa openings,” he says. “Therefore, we plan farther out in advance for these openings and work diligently to monitor availability of everything needed to open a spa.”

Price Increases May Be Inevitable

None of the wholesalers we spoke to are immune to inflation or price increases. According to Lester, supply chains are still catching up after COVID and many of their vendors have increased prices for the first time in years. “The cost of freight due to increased oil prices has definitely increased the cost of doing business,” he says. “[But] we do our best to negotiate prices and shipping.” And their goal is to keep increases in line with the percentage of increase their own vendors use. “We constantly monitor our prices against other distributors and Amazon to make sure we are competitive and fair,” he says. “We have held our free shipping thresholds and are very mindful of the most used products and supplies by spas to ensure we keep our spa partners’ cost of goods as low as possible.”
For Pekarek, transportation costs, components, and ingredients are up 50 percent in some cases. “We will have a new price list coming soon,” he says. “Unfortunately, the cost of doing business is higher than ever. We think the global situation will not get better soon. Probably we will not see any change during 2022.”
Rimbey says the cost of doing business has doubled on some of their raw ingredients at Sacred Earth, while rising fuel costs have increased their transportation costs by about 20 percent. “Because we use only certified organic oils,” he says, “we are always at a price disadvantage, so we have always worked hard to keep our prices as affordable as possible. Prior to the war in Ukraine, we raised prices to keep up with our rising costs, and that would have typically covered us for at least a year. Now, with the oil shortages caused by the war, commodity prices have skyrocketed, so we will have no choice but to increase prices on some products again later this year.”
Pekarek warns that raising prices is a risky business, but there is a fine line between charging too little and too much. “Unfortunately,” he says, “customers are driven by offers.” So, Pekarek’s long-term plan is to move most of their business through distribution by professional estheticians. “They deliver huge value, [advice], and coaching,” he says, to achieve clients’ desired results. And he feels estheticians are more willing to pay the current premium for quality products.
Lester and his team at The Spa Mart anticipate that supply chain shortages are the new norm but remain hopeful things may begin to normalize in the next 18–24 months. That said, they hired a full-time procurement specialist to ensure they maintain a strong and consistent supply of goods while also being mindful of pricing. “For our top selling, everyday spa disposables, we have increased inventories by over 30 percent,” he says. “We have also curated products made in the US that are best-in-class quality, and we are putting those items under The Spa Mart brand.
“As former luxury spa owners, we do understand maintaining quality and being held accountable to profitability, and we take this very seriously to help our spa partners. Any products carrying our brand have been approved and tested by our team of in-house spa experts and our spa partners that are included in our product development process.”
According to Rimbey, Sacred Earth Botanicals has had to substitute or supplement some of its products with alternative oils, since some of their normal ingredients are in such short supply. Because of these changes, Rimbey says communication with clients is key. “We have had to spend a lot of time educating our customers on what they can expect,” he says, “which is not easy given how quickly things are changing on the supply side. Ultimately our goal is to continue to offer affordable, high-quality products that are environmentally friendly because they are farmed and processed under the USDA organic program.”
Patrick feels fortunate that the leadership at Oakworks anticipated the supply chain challenges and made purchase provisions in preparation for shortages and cost concerns. “From a provider perspective,” she says, “our company is in good shape. The concern we are seeing is more related to openings of new starts being pushed back due to unavailability of other items, which are more heavily impacted by the import upheaval, such as facial equipment, steamers, oils, and stone warmers. [New facilities] need these kinds of goods, [but] often the providers have been impacted by the trade route challenges and are delayed in receiving the needed [products]. This pushes back the dates and can be a real headache for the new spa owner.”
When asked if COVID is still relevant to The Spa Mart’s supply chain, Lester answers, “Of course! Recently, ports in Shanghai have been closed. Factories are still slow to produce, and lead times are definitely longer due to the shortage of labor from COVID-19.”
Patrick agrees. “Fuel prices, as all Americans know, have skyrocketed,” she says. “Couple this with the lack of employees overseas due to COVID lockdowns, the scarcity of raw materials and finished goods, and increasing demand, prices will likely rise in all aspects of business, depending on the types of goods your business relies upon, the speed with which you can acquire the needed goods, and their [related] costs.”
Patrick says scarcity always drives the cost of goods, and increases can range from 10–30 percent on the producer side, depending on the items in question. “Our company has [adjusted] our pricing but also made many more efficiencies in production that will enable us to work to keep costs low to try and maintain our basic pricing for the longer term.”
Oakworks is a “just-in-time” manufacturer, so they build to order. “Doing this means [the] product is built to your specifications, and we utilize only the resources needed to fulfill the orders we receive,” Patrick says. “This [enables] us to maintain service, supply, and overall product quality despite many of the issues the supply chain is enduring at this time.”

Lessons Learned From Crisis

Stash a little away for a rainy day
Sounds like an old adage from the Great Depression, doesn’t it? But the wisdom is there. Take inventory of products you regularly use to run your business. Is there an item or two (or more) you could buy now to save cash later?

Consider alternatives
Several wholesalers have run into product and component shortages during COVID, which continue with the Russian invasion of Ukraine. And although you may have stockpiled needed goods, remember there may be additional shortages at some point. So, what else can be used in its place? Can you afford to wait for the supply to return? What other considerations, such as new labeling, non-GMO, or USDA certified organic, will be required if you make a change?

Negotiate
Demand is high for goods right now due to COVID-19, shipping issues, the war in Ukraine, and an overall uncertainty surrounding international trade. That said, you have probably worked with the same vendors for years. Use these long-term relationships to negotiate prices you and your vendor can live with. After all, you may be digging into their pockets short term, but help now means you can remain in business and continue to be a long-term customer. That said, remember your own customers. Though you can’t run a business using 2020 prices, perhaps limiting increases will benefit you and your clients long term.

Buy close to home
“Made in the USA” is the name of the game right now. Although you may pay more right now for products produced in the US, you will save on shipping costs. And (bonus!) you will help other US companies stay in business. The more US products we purchase now, the more available they will be long term.

Communicate with your clients
Price increases are inevitable, so be sure to keep your clients in the loop on price or ingredient changes. No one likes higher prices or product changes, but taking the time to explain your reasoning may help you retain your long-term clients. Also, doubling down on excellent customer service will go a long way in this economy!

Stay informed
Although most of us did not anticipate the current supply chain issues, we are now keen on looking for clues that predict future challenges. Keep an eye on current events, economic trends, politics, weather conditions, etc., in order to stay ahead of the next potential shortage.

Prepare for the long haul
Since most experts predict we will not see supply chain relief this year (or possibly for another 18–24 months), long-term solutions should be forefront in your mind. Add additional suppliers and evaluate them regularly. And if you sell product, evaluate your product offerings and adjust accordingly. Better to adjust a product line than look like you’re going out of business. Empty shelves send the wrong message.

Adapting to Global Impacts

While Patrick hopes that the shortages and delays swiftly end, she says the supply chain is “so complex that it is expected to be snarled for the remainder of the year” and will be determined by “the geopolitical climate, as well as pandemic responses in the areas affected.” Until the hostilities and constant rumors of hostility subside, Patrick says Oakworks is prepared to weather the storm. She also feels that sourcing goods is paramount.
“Ideally, US-based companies that produce quality raw and finished goods are an exceptional alternative to imports. Look for companies who are American-owned and have their manufacturing in the United States,” she says. “As we move forward into this new market with its specific set of delivery challenges, working with a US-based company, which sources most of their raw goods stateside, can help reduce costs. Long term, being cognizant of the economies of importing versus the production stateside will be a point of analysis for many smart businesses. Price is always important, but now, equally important is availability. Finding the happy place between scarcity at historic prices, and availability from a domestic source at a slightly higher cost is a reality we must all face and address,” she says.
Russia’s war on Ukraine has impacted Oakwork’s ability to produce some products, Patrick says. “A huge area of concern for us is the high-quality plywood from Russia, which everyone uses to make high-quality portable massage tables. Due to Russia’s aggression in Ukraine, Oakworks will not buy any more products from Russia and believe we all need to stop feeding Russia’s war machine. We are researching alternatives to what is commonly called ‘Baltic Birch,’ but it comes from Russia in actuality. Prior to the aggressions, we had made a solid store of this raw material so we will be able to still provide portable massage tables a bit longer. We will source a replacement, which will equal or exceed this material in strength and durability, and ideally, we continue to look stateside to do it.”
COVID is also still impacting the supply chain. “Thankfully it has slowed its chaotic march in the US. Overseas, however, there are still marked lockdowns, [which] . . . can lead to shortages of goods, and thus deliveries of imports to the US could slow. The upside here would be the congestion at the US ports of entry would lessen, and available ships, which are holding viable goods, [could] move through the cycles faster. The downside is many of the goods we have come to rely on for daily life and convenience may not be available as readily as before,” Patrick says.
“Smart usage, strong and conservative resource management, and thoughtful and strategic domestic sourcing will continue to get us through this challenge.”