MashupMom had a great post on this topic a couple of days ago and I figured I would touch on it as well.
The Chicago Tribune recently had an article about the rising cost of goods.
"Procter & Gamble Co will raise detergent prices by 4.5 percent in June as the world's largest household products maker starts to respond to rising costs for materials, packaging and transportation.
The maker of Tide, Gain and Era laundry detergents said the increase would go into effect on June 6. Prices that shoppers pay are ultimately set by retailers."
So the prices that are set by the retailers will probably go up 6%-8% or so, since they are paying 4.5% more and and will have to adjust their price accordingly to maintain their profit margin.
"According to Weeden & Co analyst Javier Escalante, P&G will actually raise the list prices on powder detergents by about 13 percent and reduce the frequency and depth of promotions on liquid detergents."
This is particularly worrisome because that is the very way we couponers would attack these prices. Weaker sales and for less time would make couponing tougher.
"The detergent price increase followed on the heels of a smaller rival's paper products price increase. On Thursday, Kimberly-Clark Corp said it would raise prices of diapers, toilet paper and baby wipes by 3 percent to 7 percent.
"Escalante said that he expects P&G, which makes Pampers and Luvs diapers, to follow the lead Kimberly-Clark took. P&G's detergent price increase and the potential increases it could take on paper goods should offset about $500 million in higher commodity costs"
So as you can see, P&G has a lot of money ($500 million) to make up for. It is no wonder why they are increasing prices and we can only expect the increases to stretch across their entire line of products.
What does this mean for us?
This means that we must become more efficient couponers to continue to save big bucks. Me? I just got a brand new, bigger coupon binder with 32 page dividers so I can better keep my coupons organized.
Check it out!
This also means I will pay particular attention to my stockpile to avoid running out of things that I can get for free with couponing. If I run out of toothpaste and it is not on sale this week, I pay for it. I am trying to avoid those situations. Things like toothpaste are free after coupons and rewards WAY too often to have to pay for them, ever.
I will also spend the next few months building my stock, so I am ready for sales and promotions to become less frequent. Still, with most products having many different brands that sell them, sales would still be fairly frequent. This would hurt most for people who are very brand specific. This could also make it more difficult to get products that are not made by a lot of name brands (like batteries or window cleaner) for super cheap/free.
It is time to tune up your couponing to get organized and stay sharp. Be aware of sales, promotions and of the coupons you have. Know when to stock up and when to wait for a better price. Most importantly, continue to keep your hard earned money where it belongs; in your pocket!