Posts tagged with "Transportation"

Consumer wallets ‘spring a leak’ as prices soar on diapers, kitty litter, and toilet paper

February 12, 2019

Most of us cut back on everything but the essentials when household prices go up, but our budget remains the same. However, according to a February 10 report by The Wall Street Journal, the cost of staples—including such fundamentals as diapers and cat litter—is expected to increase in 2019, leaving us little choice but to ante up.

Producers of household products, from toilet paper to bleach, are set to raise prices again this year after already hiking prices in 2018, hoping to offset higher commodity costs and boost profits, the financial news outlet says.

New Jersey-based Church & Dwight already has increased prices for about one-third of its products, including Arm & Hammer cat litter and baking soda, and some OxiClean cleaning products.

“The good news is that competitors are raising [prices] in those categories as we speak,” Church & Dwight CEO Matthew Farrell said on a conference call last week, during which the company reported higher quarterly sales and lower profits.

What he left out of that statement to financial analysts was that it was good news for the company and its stockholders—but not for America’s consumers.

The company is now discussing more price increases with retailers, including for personal-care products, Farrell told analysts Tuesday. Those brands include Nair, Arm & Hammer Toothpaste, Orajel, Simply Saline, Waterpik, and Viviscal, among others.

Other household names that are planning to release similarly “good” news, according to the Journal, include Procter & GambleColgate-Palmolive, and Clorox, which are raising prices in response to higher costs of raw materials and transportation, as well as unfavorable foreign-currency swings.

For much of the past decade, the Journal notes, price cuts have been far more common than price increases as U.S. companies were mostly reluctant to test consumers’ spending power and brand loyalty in a fragile economic recovery.

When companies tried to raise prices, “they better have had a uniquely strong innovation or be willing to lose market share to competitors,” Sanford C. Bernstein analyst Ali Dibadj told the news outlet.

Adding to the challenge of raising prices is that more shoppers have been switching to store-branded paper towels and discount detergents, or opting for online upstarts such as Dollar Shave Club.

Traditional brands also have been under pressure from big-box retailers such as Costco and discounters like Walmart Inc. and Amazon to keep prices low—pushing the manufacturers to focus on lowering costs in their supply chains or pare back advertising.

Finally, after failing to see success when they tried to combat weak demand by lowering prices, the industry’s biggest player, P&G, shifted its course last summer, announcing it would charge more for several of its brands—and several rivals followed suit, the Journal reports.

The recent price increases are largely playing out in the companies’ favor, Wells Fargo Securities analyst Bonnie Herzog told the Journal. Sales volumes of household and personal products in the United States. declined 1.4% in January, according to Bernstein’s analysis of data from Nielsen. Dollar sales of those products rose 0.7% in the period, Bernstein said, indicating that the price increases, on balance, are padding the bottom lines at consumer-goods companies.

How consumers will deal with the price hikes long-term remains to be seen.

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Flying high: ‘Birding’ is a $40 billion industry nationwide

September 10, 2018

We all have heard the expression, “free as a bird”—so it is fairly shocking to learn that “birding” in the United States is a $40 billion industry.

You read that correctly. It turns out that bird-watching takes more than a pair of binoculars and a field guide on our feathered friends. According to findings of a 2011 study by the U.S. Fish & Wildlife Service, there are nearly 47 million birders nationwide, age 16 and older—or about 20% of the total population—and they are willing to spend big on travel and equipment to catch a glimpse of a whopping crane or a San Clemente loggerhead shrike in its native habitat.

Birders spent an estimated $15 billion on their trips and $26 billion on equipment in 2011, the study found. For trip expenditures, 52% of the cost was for food and lodging; 34%, for transportation; and 14 %, for other necessities, such as guide fees, user fees, and equipment rental. Equipment expenditures were relatively evenly distributed among wildlife-watching equipment (29%), special equipment (37%), and other  items (30%).

To be counted as a birder by the researchers, an individual must either have “taken a trip for the primary purpose of observing  birds” and/or closely observed or tried to identify birds around his or her home. Thus, people who happened to notice birds while they were mowing the lawn or  picnicking at the beach were not counted as birders. Trips to zoos and observing captive birds also did not count.

Backyard birding or watching birds  around the home is the most common  form of bird-watching.  Fully 88%  (41 million) of birders are backyard birders. The more active  form of birding—taking trips away from home—is less common with 38 percent (18 million) of birders active travelers.

The average birder is 53 years old and, more than likely, has a better-than-average income and education. She is slightly more likely to be female and highly there is also a  good chance that she lives in the South in an urban area.

Research contact: ‎@USFWS