Sticky or Stubborn Prices
There has been much talk in the news media about "sticky" or "stubborn" prices. What they are talking about is the fact that the prices of things like food, airline tickets, even gasoline are quick to go up, but very slow to come down.
Food prices in particular don't seem to be dropping. What this is about is a combination of greed and psychological complacency.
The sellers are greedy and want to maximize their profit margins. They feed us a load of bull about how their costs for transportation and production went up because of increased energy costs, so they had to raise prices. Well, those costs have retreated, but their prices have remained inflated. There is a footnote to this point: Some sellers were sneaky about their price increases, they left the price the "same" and reduced the portion size-- a de facto price increase!
The buyers, us the consumers, suffer from psychological complacency-- we have gotten used to certain price levels. We get lulled into paying more and we don't seem to object when the reason for the increase is gone. Back to gasoline for a minute, I don't know about you, but I still reminisce about less than a dollar a gallon. Everyone I know is so happy that gas is now back below $3-- big deal!
I wish we as a people could boycott these prices as people did in the 1970s when the prices of sugar, coffee, tea, and meat went through the roof, but I don't think we have the collective frame of mind as a people to actually do it.
All that said, if you want to positively impact the family budget in this environment, start with your grocery bill (See my post, My Typical Grocery List and Strategy).
Categories: Money Savers, Groceries, Frugality, Personal Philosophy
Tags: Money Savers Personal Philosophy Frugal Frugality Groceries
When I was a kid, the price of sugar soared and the price of baked goods soared along with it. The excuse was the higher price of sugar.
When the price of sugar went down, the baked goods remained high and companies reasoned that they still had warehouses full of high priced sugar, so the prices wouldn't fall until that was used up.
Funny how the warehouses full of low priced sugar weren't taken into consideration when the price of sugar went up in the first place.
Similar to the $6.00 per gallon gas at some stations after Katrina. Some folks just can't resist sticking it to the consumer while they can.
The only choice we have is to act as individuals and remember those that take advantage of us, and boycott them. I'm talking about a boycott for life, not just a temporary spanking.
We get what we deserve, and it's time that our suppliers in the market did too.
When Walmart put televisions inside their stores, I stopped going there. I don't care if it's Walmartvision or Disneyvision or one of the alphabet networks. I don't need someone trying to sell me stuff while I'm there buying stuff.
And, I don't need the entertainment while I shop either. I don't watch TV at home, and I find it offensive when others think I need entertainment and brainwashing to be a happy customer.
Clair
Reply to this
I have heard the same argument recently about the gas in the underground tanks, "Well we have to sell the higher cost gas in the tank first . . . " Funny the cheaper cost gas in the tank was sold at the lower retail price, when the prices were on the rise.
Just a bunch of greedy opportunists . . .
Reply to this