Magazine - Featured Story
Financially
Fit: Saving Smart and Living Well
Supermarkets May
Sneak in Price Increases
Editors
Note:
Increased food prices is bad news for consumers. Coupon clipping becomes more
important in a rising economy.
A
surprise jump in wholesale food prices in September is bad news for producers
and retailers, but you won't feel it in your wallet. Yet.
Producer
prices — the amount farmers receive for their goods from manufacturers — rose
by 6.9% compared to September 2010 or 0.8% on the month, the U.S. Labor
Department said Tuesday. Wholesale prices — those paid by retailers — increased
by an annual 2.5%; the biggest rise since June 2009. Worse, higher food prices
aren't limited to a particular food group. U.S. wholesale prices rose across
the board due to the rise in energy costs and commodities like grain and
coffee. Fresh and dry vegetable prices soared by 10% on the year last month;
beef and veal prices rose by 5.4%.
Analysts
say supermarkets will start passing price increases onto consumers slowly and
quietly. "Most retailers have been reluctant to raise prices up until now
and have eaten up the higher raw material costs," says Michael Keara, an
equity analyst for Morningstar. "But they will start." Although food
commodity prices have been climbing steadily this year, grocery stores have
held off because they don't want to scare price-sensitive customers. However,
expect to see supermarket prices edging up in six to nine months, he says.
Consumers
watching their wallets may also want to keep a closer eye on package sizes for
their favorite foods. Keara says the jumps in wholesale and producer costs are
so high that manufacturers are likely to cut quantity as a way of disguising
price hikes. In other words, start making a note of how many ounces you get in
your six-pack of your favorite granola bars. "They don't want to shock
consumers," he says, noting that increases over 5% hurts sales volumes.
Shopping
experts are already advising consumers to stock up, track expiration dates and
freeze perishables. "Shoppers are shopping less frequently, twice per
month," says Nick Dellis, a spokesman for an online grocery list.
Consumers do best using coupon-clipping strategies and deals.
SUSAN'S TRAVEL DIARY
Coupon Queen Travels to Florida &
Philadelphia
WAM – BREAKFAST&BREAKOUT
SESSIONS
I
was lucky enough to participate in the Woman and Money Conference (WAM) held May
7 in Destin, Florida. It was run by Shelter House-A Domestic Violence Center.
Breakfast started at 9AM, with 4 Break-Out sessions. After lunch, I was the
keynote speaker. Some of the participants brought their coupon organizers and
tips about savings. It turned out really well, and I was honored to be included
in the event.
MARY TALKS MONEY
One
of the shows we taped in Philadelphia over a few week time period, Mary Talks
Money, aired on WPVI-TV, ABC on April 12, 2010. The segment was done quite
well. I shopped with Michelle, a local mom of 3 kids; she was really nice and
so interested in learning how to save. Here’s the link if you get a chance to
view it.
http://livewellnetwork.com/Mary-Talks-Money/episodes/Saving-at-the-Supermarket/8059070
ABC-TV New York City November 22, 2010
One of the nicest events is getting a call from a local New
York station to do a shopping trip or a TV show. We got such a call from ABC.
They wanted a Thanksgiving dinner for under $20. I surprised even myself. We
got over $116 in Thanksgiving treats for under $5. The camera's were whirring
away, taping my every move and the checkout was carefully filmed. The nearby
shoppers were all rooting for me. It was just perfect. Of course regularly I
can never save my entire bill, but with double coupons, high value coupons and
great sales, I can manage between 50-60%. Send along some of your shopping
trips too.
SWEETBAY STORES: Southwest Florida, September 27-October 10
Once again this year we traveled down to Tampa, Naples,
Bradenton, Ft. Myers and Clermont Florida among other cities and spoke before
young mothers, middle aged-shoppers, working people, retirees and some of the
most knowledgeable couponers and refunders around. No matter how much I think I
know, I always learn and pick up new tips. Everyone is willing to share
knowledge and in this economy, it's a big help. Sweetbay offers other wonderful
seminars and consumer outreach programs. Check their web sites for upcoming
events.
Use Of Coupons Increases Sharply
Largely because of economic woes, more and more shoppers are clipping and using coupons this year.
The coupon is back, thanks to the recession.
After almost two decades of decline, 2009 marked the first year that coupon use had increased in the U.S. since 1992.
Coupon clipping for the millennium
isn't just for detergent and cereal.
Retailers of all stripes, from Walgreens to Neiman Marcus, have latched onto the coupon to entice consumers to spend. And the Internet and mobile devices are making coupons more widely available.
�Coupons are just more accessible to more consumers than ever before,� said Todd Hale, senior vice president of consumer and shopper insights at Nielsen Co. �Without question, the economy has caused consumers to make pretty significant shifts in where they shop and how they buy and use promotions.�
Retail sales in 2009 were no better than 2008, which ranked as the worst season in four decades. The differenc: Merchants were better prepared to protect profits and reduce their inventories going into November and December.
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