It was bound to happen, eventually …

As we have been saying, companies everywhere held off price hikes as long as they could, in spite of rising commodity costs, trying to maintain sales in the face of a sputtering economy. But a stop for a gas fill-up ought to tell us all that those restraints are coming off.  The New York Times published a good summary of where prices are likely to go across a broad category of consumer goods.

 

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2 responses to “It was bound to happen, eventually …

  1. In a time of rising commodity costs Wegman’s continues to set the standard for helping it’s customers through difficult times. In addition to providing free Rx antibiotics they have just announced the following in the Rochester Business Journal:
    “Wegmans Food Markets Inc. said Tuesday it will not increase prices through 2011 on 40 products families buy most.

    “Such things as bananas, pasta, frozen vegetables and laundry detergent are in most shopping carts every week,” President Colleen Wegman said. “They are products that families can’t do without, so what they pay for these items really matters.”

    The 40 products include orange juice, canned coffee, cereal, bananas, red peppers, pasta and sauce, chicken, ground beef, salmon, tilapia, tuna, frozen pizza, frozen vegetables and deli ham and turkey. Because some items come in different varieties or sizes (different kinds of pasta sauce or frozen vegetables, for example), the number of items covered by the price pledge is some 200 stock-keeping units.

    Nearly all are Wegmans brand. ”

    Good luck seeing this kind of community support from a publically traded company.

  2. It has been a long time since sourcing professionals have worked in a high inflation environment. Does anyone still remember the strategies? Does anyone remember when inventories became more valuable because the replacement costs kept climbing? It has been so long since procurement needed to account for the effect of infationary expectations (real ones, not those instilled by “buyer conditioning”) that the skills may have been lost. This is a topic that should be explored.

    Take care.

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