The news that projects pricing issues until at least the end of the year paints a scary Halloween picture. It seems no matter which way we structure or restructure the food budget, producers have us with higher prices. We know that corn prices, which affect a laundry list of end products, have risen dramatically. Beef is a tricky one as some ranchers find limited outlets for their beef. This then has them worried about maintaining a high quality product as we move forward. This is not necessarily a new problem but one that clearly fits into our pricing discussion. Look at the fish industry. Salmon, cod, and halibut are now more readily available, but prices have skyrocketed. One is left with the question, Who will buy?
At the same time pricing worries continue, it’s no surprise that coupon usage is way up. Consumers decided to pay attention to offers and take advantage of the savings. There are few branded products that hide behind a no-coupon policy. The current environment encourages grocers and restaurants to follow customer preferences and offer frequent guests and shoppers enticing coupons. This is the new norm now at all price points with even so-called higher-end stores such as Whole Foods actively joined the coupon brigade. As for general retail, the mantra seems to be “Sign up today; no charge, and get 20% off your first purchase.” These are all-telling details.
A funny little trend sneaks in under the radar. Consumers have taken the healthy and ecological food train and do not want to get off. Sustainability has become an important concern and one that has stickiness. Those who started to buy healthier products and in turn eat healthier are not willing to forgo that lifestyle change. Likewise, environmental concerns has big players, such as Wal-Mart, hopping on board.
What happens to the local trend? The one that says support the local growers and merchants? It seems the concept managed to get on the radar with Wal-Mart as it opens and remodels its stores and the Sam’s Clubs, with more attention to local and healthier foods making the shopping list. Yes, you heard right. The big box player has decided to join the local movement. Who could have guessed that?
Yes, it’s all about balance. We want sustainable goods and at the same time, we need options to cut our prices. We can learn a lot about pricing from high-end restaurants. Many figured out they need a sister operation or offer a less expensive bar menu. Why not? We all are in the same game: Survival.
No business wants to miss out on the opportunities for affordable quality.
