fbpx

Inflation Anecdotes

[one_fourth last=”no” class=”” id=””] Bicycles[/one_fourth]
[three_fourth last=”yes” class=”” id=””]Bicycles:

I own a small bicycle shop in Seattle and have been in business for 2 years. Your inflation video is spot on. I just did inventory and had some tires left from Sept. 2010 and one I bought Aug. 2012. Same distributor and same exact tire. Price went from $15.90 wholesale to $17.80 wholesale per tire. Tire is made in Japan.

I am seeing inflation mostly in complete assembled-in-China bicycles. Up about 5-15% year-over-year and some come with lesser parts at the same retail price but wholesale has gone up 1-2 percent, so my margins are getting squeezed. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Bowling Alleys[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Bowling Alleys:

I’m the mechanic at a bowling alley north of NYC, I’ve been working here for over 10 years. In 2002 the cost to league bowlers was $8.25 for 3 games today its $13.50. The rest of our prices like rental shoes, open bowling, pro shop work, and food have been increased by a similar percentage. We have not been influenced by the CPI or any specific numbers other than the increase in our raw costs. Taxes, energy, parts, food, regulation have gone up around 65-75% over the last 10 years and our prices have been adjusted to reflect that. In addition to having to increase our prices we have had to decrease workers and allocate more work to those that remain. In addition to higher prices I feel the quality of our bowling alley has gone down some because of our employee loss.

In 1995 we had around 1,000 league bowlers, today we have around 150. I’ve heard people say that people aren’t interested in bowling anymore and that’s the real reason bowling is down. I have seen some interesting bowling statistics that show that more people bowl a year today than at any other point in history — they just don’t bowl as much. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Candy[/one_fourth]
[three_fourth last=”yes” class=”” id=””]A few years ago, Reese’s used to have a 10-pack of peanut butter cups that typically sold for $0.99 in the grocery store. Then recently they went to the 8-pack for about $1.79 or so. Even though I’ve seen the 8-pack go for as much as $2.19. Well now they’re slowly replacing the 8-pack for a 12-pack that cost around $2.79. I’m sure in another year or so the new 12-pack will cost over $3.00.

Hey I wonder if anyone has an old 10-pack wrapper. Maybe you can offer a reward for anyone that can send you the historic 10-pack, which was out only a few years ago. I bet no one will be able to produce one. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Car Insurance[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Car Insurance:

I received my car insurance renewal papers and it went from $425 + tax to $501 + tax in two years. This is an 18 percent increase. I called them up to get an explanation since I’m getting older, my car is worth less and even a ticket has disappeared from my profile and they told me that the norm is between 5% and 10% per year. So much for 2 percent inflation.[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Chipotle[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Chipotle:

Chipotle Restaurant stock dropped precipitously yesterday due to rising food costs eating into margins. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Wine[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Wine:

2 buck chuck raises price from $2 to $2.50 — a 25 percent increase. (Link) [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Coke[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Coke:

Just came from the convenience store at my office building and noticed the price of Coke had gone up 12 cents. I asked the store manager about it and he said last week Coke raised the price of EVERYTHING 10 percent across the board. More evidence of inflation. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””] College Football Programs:[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

College Football Programs:

Inflation evidence in college bowl game programs pamphlets:

1950 OU vs. LSU Sugar Bowl——-50 cents
1958 OU vs. Duke Orange Bowl————75 cents
1981 OU vs. FSU Orange Bowl——————–$3.00
1988 OU vs. Miami Orange Bowl———————-$5.00
2001 OU vs. FSU BSC Orange bowl———————$10.00
2007 OU vs. Boise St. BCS Fiesta bowl————————$15.00
2013 Bama vs. ND BCS Discover bowl——————————-$20.00[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Costco Cheddar Cheese[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Costco Cheddar Cheese:

The cheddar cheese block at Costco keeps getting smaller and smaller and smaller and … well not it’s not even Costco-sized! [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””] Electricity:[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Electricity:

TVs are cheaper but they are useless without energy and cable. Both cable bills and energy prices continue to rise. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””] Girl Scout Cookies[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Girl Scout Cookies:

Girl Scout cookies in Austin, Texas in 2012 were $3.50, now they are $4.00. Maybe that is better for my waistline anyway. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]HoiCin Restaurant[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

HoiCin Restaurant (Sacramento, Calif.):

Here is Sacramento is a restaurant called HoiCin. In the front of the menu is a message saying that due to rising costs, all prices have been raised by 19 percent. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]JBL Speakers[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

JBL Speakers:

Electronics are built cheaper today and sold cheaper. But quality electronics are different. For example a great JBL Studio monitor was $3,000 dollars in 1986 and is $36,000 today. A good Accuphase stereo today is about $50,000. There is a lot of cheap Malayasian garbage that most people buy thinking they got a “good” stereo.[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]McDonalds[/one_fourth]
[three_fourth last=”yes” class=”” id=””]McDonalds[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Office Coffee[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Office Coffee:

In my office, we have a coffee table. The person who runs it posted a message saying that a cup of coffee was going from 35 to 50 cents since coffee prices have risen.[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Papa John's[/one_fourth]
[three_fourth last=”yes” class=”” id=””]Papa John’s[/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Prius Batteries[/one_fourth]
[three_fourth last=”yes” class=”” id=””]I have a Toyota Prius; the 12V battery was going in and out less than 2 years after I bought it. I took it to the dealer and they couldn’t reproduce the problem, but offered to replace it for $350. I didn’t buy it because they weren’t sure it would fix the problem.

Fast forward 1 year: I took it to the same dealer because the battery finally bit the dust. Price quote: $418.00 – 20 percent inflation, plus quality issues with cars these days! [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””] Rent (in Seattle):[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Rent (in Seattle):

Rents are getting so high in Seattle that people are starting to buy to get a decent place. It ends up being cheaper to buy than rent! (Link) [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

[one_fourth last=”no” class=”” id=””]Shipping_to_Canada[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Shipping to Canada:

Over the last nine years shipping a 1lb package to Canada has gone up 160 percent and shipping times have almost doubled. This year rates are to go up another 6 percent. In 2006, they went up 69% and the shipping times almost doubled.

These higher prices have lowered our international sales from 40 percent of our sales to just 5 percent. Our products are only about $30. So they went from $39 to $53.42 after shipping. It just priced us out the market on international sales.

Shipping to Canada via USPS Priority Mail International Package Weight

YEAR 1 1.5
2004 $9.00 $12.00
2005 $9.00 $12.00
2006 $15.20 $16.44
2007 $16.15 $17.48
2008 $16.15 $17.48
2009 $18.21 $19.71
2010 $19.00 $20.66
2011 $20.19 $21.95
2012 $22.09 $24.51
2013 $23.42 $25.98

Prices went up 160.22 percent in 9 years, or 17.8 percent per year.

In 2006, shipping time to Canada went from four business days to seven. Things were even worse for the UK; it went from seven days to 20. Also in 2006, they changed rate calculations: package weights are rounded up to the next full pound instead of half pound.

International sales went from 40% to 5% over that 9 year span. Shipping a $30 product to Canada went from $39 to $53.42. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Whirlpool[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Whirlpool:

Nearly four years ago I started selling appliances. At that time there was a Whirlpool side-by-side refrigerator model ED5KVEXV that regularly sold for $799, before “sale events.”

This same model is still being manufactured by Whirlpool and since the beginning of 2012 it has been selling for $999 and it is not routinely marked down as it was when I began to sell appliances. [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

 

[one_fourth last=”no” class=”” id=””]Time Warner[/one_fourth]
[three_fourth last=”yes” class=”” id=””]

Time Warner:

Time Warner Cable in San Diego let us know that our cable bill for 2013 is increasing.

Basic Cable: $19.50 raised to $22.00 Standard Cable $68.69 raised to $73.69

My math comes out to approximately 13 percent and 8 percent increase, respectively. A little more than current CPI! [/three_fourth]

[separator style_type=”single” top_margin=”-1″ bottom_margin=”40″ sep_color=”#333″ icon=”fa-comment-o” width=”60%” class=”” id=””]

Leave a Reply