Author Topic: Rising prices  (Read 7018 times)

Offline busymomx3

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Rising prices
« on: July 17, 2014, 01:14:47 PM »
Hersey announced they are raising the price of their products by 8%.
http://www.foxnews.com/leisure/2014/07/16/hersheys-chocolates-will-now-cost-more/

I know not as big of news as the plane crash and such but I guess I took it as another sign of the value of our dollar going down.  I know food prices have soared this year.  I also found this paragraph interesting.

"Experts said the price increase announcement by Hershey is expected to trigger price increase announcements by its competitors, including Kraft Foods Group and Nestle SA, although increases in the industry are usually often in a quiet manner."

Offline digitalartranch

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Re: Rising prices
« Reply #1 on: July 17, 2014, 01:37:13 PM »
my favorite is the price staying the same but the product being 10-20% less quantity trying to trick us prices aren't going up...

Offline Josh the Aspie

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Re: Rising prices
« Reply #2 on: July 17, 2014, 01:37:50 PM »
Official consumer inflation (which does not include several driving factors like food and energy prices, or college tuition) is currently at 4% per year.  It's actually higher, once you factor those expenses in.

As a result, any investment that does not reduce future purchases, or bear a high interest reliably (which won't happen due to the fed interest rate being held artificially low), is lost money.

As a result, I find that home food storage, and buying tools you need now (if bought with real money rather than on debt) to be sound forms of money management.

About the only exception are goods that greatly decrease in utility over time, such as computer components.  If you won't need that new computer for 12 months, wait at least 8, you'll get a better deal on the same specs, or better specs for the same cash price, and software will be expanding to utilize those new resources.

Offline JLMissouri

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Re: Rising prices
« Reply #3 on: July 17, 2014, 03:11:58 PM »
Official consumer inflation (which does not include several driving factors like food and energy prices, or college tuition) is currently at 4% per year.  It's actually higher, once you factor those expenses in.

As a result, any investment that does not reduce future purchases, or bear a high interest reliably (which won't happen due to the fed interest rate being held artificially low), is lost money.

As a result, I find that home food storage, and buying tools you need now (if bought with real money rather than on debt) to be sound forms of money management.

About the only exception are goods that greatly decrease in utility over time, such as computer components.  If you won't need that new computer for 12 months, wait at least 8, you'll get a better deal on the same specs, or better specs for the same cash price, and software will be expanding to utilize those new resources.

I agree, when things are at a good price I stock up. When we get a bumper harvest we can it up. I would rather have food in the cellar anyday over money in the bank.


Offline Cedar

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Re: Rising prices
« Reply #4 on: July 17, 2014, 03:16:03 PM »
I agree, when things are at a good price I stock up. When we get a bumper harvest we can it up. I would rather have food in the cellar anyday over money in the bank.

Yeppers.

Cedar

nkawtg

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Re: Rising prices
« Reply #5 on: July 17, 2014, 04:41:21 PM »
my favorite is the price staying the same but the product being 10-20% less quantity trying to trick us prices aren't going up...
Like a five four pound bag of sugar?
 
What inflation? Move along, nothing to see here...

Offline digitalartranch

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Re: Rising prices
« Reply #6 on: July 17, 2014, 05:01:01 PM »
exactly... charcoal used to be 10lb and 15 lb bags...

nbow 8 and 12.5......

Offline Cedar

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Re: Rising prices
« Reply #7 on: July 17, 2014, 06:30:46 PM »
Livestock feed used to be 50 and 80 pounds.. now they are 35 and 40's. And the price still has gone up.

Cedar

osubuckeye4

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Re: Rising prices
« Reply #8 on: July 18, 2014, 07:44:48 AM »
Official consumer inflation (which does not include several driving factors like food and energy prices, or college tuition) is currently at 4% per year.  It's actually higher, once you factor those expenses in.

As a result, any investment that does not reduce future purchases, or bear a high interest reliably (which won't happen due to the fed interest rate being held artificially low), is lost money.

As a result, I find that home food storage, and buying tools you need now (if bought with real money rather than on debt) to be sound forms of money management.

About the only exception are goods that greatly decrease in utility over time, such as computer components.  If you won't need that new computer for 12 months, wait at least 8, you'll get a better deal on the same specs, or better specs for the same cash price, and software will be expanding to utilize those new resources.

Mark Cuban actually gave a good interview about this topic a few years back... he said that the best hedge against inflation for the average U.S. consumer was to buy non-perishable staple items in bulk (toilet paper, paper towels, canned goods, ect.), because their price isn't going to go down over time.

Rather than popping $200 into the stock market... spend it at Costco on a bunch of paper towels that are on sale, presuming you have the storage space for them.

He actually caught some flack for it from other 1%'ers, but, it made sense to me and is what I and my family have been doing for awhile now.

Offline Josh the Aspie

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Re: Rising prices
« Reply #9 on: July 18, 2014, 12:46:39 PM »
Unfortunately, the more things you store, the more room you need to do so in order to keep your home comfortable, clean, and sorted.  More space means either more rent, or more tax-money for the most part, it also means a higher expense if you ever need to move.

This is why I prefer my hedge purchases to be things that can be used up rather than moved.  Upgrades / replacement of worn-out tools do not take up more space either, so long as you get rid of the old ones.

This is part of why, once I clear out more of the items I do not need/use from my apartment, I intend to replace my worn out vacuum cleaner.  I will also replace items I don't need / won't use with storage of ones that I will, but only once I have the space to do so.

There are downsides to most hedges, and you need to consider the balance.

Offline PorcupineKate

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Re: Rising prices
« Reply #10 on: July 18, 2014, 02:12:29 PM »
We use a lot of chocolate during the holidays for home made candies and deserts.  Luckily for me there are a couple of Lindt chocolate factory outlets near me.  Yesterday I picked up my dark and white chocolate for the up coming season for a little over $5.00 a lb. 


Offline Josh the Aspie

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Re: Rising prices
« Reply #11 on: July 18, 2014, 02:41:52 PM »
Out of all of the chocolates that use artificial flavors, Lind is probably my favorite for taste, consistency, and general quality.  At that price, that's a marvelous purchase, especially if you've found a breed of the chocolate that doesn't use artificial flavors.  And since you're sure to use it at a time with higher prices... yes, that's definitely a nice choice for your finances.

Offline mountainmoma

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Re: Rising prices
« Reply #12 on: July 18, 2014, 06:13:00 PM »
We use a lot of chocolate during the holidays for home made candies and deserts.  Luckily for me there are a couple of Lindt chocolate factory outlets near me.  Yesterday I picked up my dark and white chocolate for the up coming season for a little over $5.00 a lb.

That is a great deal, lindt is a nice smooth chocolate. I just got my bulk order of food in the other day, including organic, dark chocolate chips at $4.22/lb. This particular brand we get once a year is a fine, dark chocolate, european, taste and smoothness like a good chocolate bar, so it is good for making truffles and chocolates, in addition to  putting in bannana muffins.

Offline mountainmoma

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Re: Rising prices
« Reply #13 on: July 19, 2014, 11:25:34 AM »
I put a post in thte other food rising thread --

organic wheat that I buy is more than 50% higher than 1 year ago.

Offline chad

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Re: Rising prices
« Reply #14 on: July 19, 2014, 01:02:37 PM »
Potato chips/Doritos $4.00/4.50 a bag.

osubuckeye4

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Re: Rising prices
« Reply #15 on: July 22, 2014, 07:34:06 AM »
Unfortunately, the more things you store, the more room you need to do so in order to keep your home comfortable, clean, and sorted.  More space means either more rent, or more tax-money for the most part, it also means a higher expense if you ever need to move.

This is why I prefer my hedge purchases to be things that can be used up rather than moved.  Upgrades / replacement of worn-out tools do not take up more space either, so long as you get rid of the old ones.

This is part of why, once I clear out more of the items I do not need/use from my apartment, I intend to replace my worn out vacuum cleaner.  I will also replace items I don't need / won't use with storage of ones that I will, but only once I have the space to do so.

There are downsides to most hedges, and you need to consider the balance.

Ok then.

The point remains... if you have the option of buying one roll of paper towels for $2.50, or have an option of buying 30 rolls at $.99 per roll, you should (assuming you have the storage space to contain the additional inventory), buy the 30 rolls.

Use the $45 you just saved to buy storage containers, and or shelving units to put up in your closets that will allow you to store more efficiently.

Offline Josh the Aspie

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Re: Rising prices
« Reply #16 on: July 22, 2014, 01:25:59 PM »
I'm not saying you're doing anything wrong, but there are some folks out there who are "the sky is falling" type prepers, or who are "penny wise but pound foolish".  This was meant as a general extension of the discussion.

Buying a single large cube of toilet paper rolls to save cost makes lots of sense.  Buying 20 of them and kicking your cars out of your garage, taking up a bedroom, or otherwise reducing usable space to store them and other bulk goods because they were on a good sale doesn't.

Buying enough rolls of toilet paper (or other bulky, relatively inexpensive items) to guard against the loss of the value of your money (hedge against inflation) isn't practical unless you don't have much money at all to hedge with, such as those close to living hand to mouth.

I'm just advising that people get rid of things they won't use to make room for their preps, rather than compromise on living space, or move into a bigger apartment or house to have room to store their preps, or their "money saving" storage of sale / pre-inflation bulky goods.  If you follow that route, you're paying more over time in the cost of the space than you are saving on inflation.  It's a mental error I have seen happen, so I'm pointing it out explicitly to help make sure folks avoid that error.
« Last Edit: July 22, 2014, 01:41:54 PM by Josh the Aspie »