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Old 06-19-2008, 06:33 AM
 
3,283 posts, read 4,753,358 times
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my dad still runs his old butchery. his prices are about half that of the top supermarket chains. on top of that his products use hardly any packaging, people get better service and a better quality product. surprisingly he still makes decent moolah (some corporate types would be horrified).
so what are people paying these extra prices at the supermarket for?
1 they're paying for convenience of everything in one place.
2 they paying to have exotic things flown in from everywhere all the time (i can assure you that bananas don't grow in michigan in january). before we just used to get seasonal stuff.
3 all that bright, sparkling, environmentally hazardous, hormone skewing packaging is not cheap!
4 selection. these days our choices are endless
5 layer upon layer upon layer of management. now your food incurs the expense of first class flight, tv advertising, celeb endorsement, branding experts, government agents (fda), dieticians, biologists, food technicians, medication, transportation, sterilisation, lawyers, accountants, insurance.........
6 poor use of human resources because people on the ground have no incentive to be less wasteful and more productive.


it might be also worthwhile mentioning that there are a few more people on the planet these days which might have some effect on demand
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Old 06-19-2008, 06:59 AM
 
Location: Savannah GA/Lk Hopatcong NJ
13,111 posts, read 25,481,443 times
Reputation: 11200
Food costs high you ask? You've seen nothing yet! After all the massive flooding and loss of crops in the mid west food will sky rocket
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Old 06-19-2008, 07:44 AM
 
Location: St Augustine
604 posts, read 4,353,038 times
Reputation: 350
I wish we could sometimes go back to the "simple" life I grew up in during the '70's....my current home is double the size of my childhood w/ same amount of people, I've had more cars in the last 20 years then my parents did in their lifetime, we never ate out & McDonalds was a treat, my parents didn't entertain me - I just went outside and played until dusk. Middle class living has changed a lot!
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Old 06-19-2008, 08:47 AM
 
5,654 posts, read 17,612,718 times
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Yes, food prices are too high. Thus people are getting into growing their own veggies in the garden again... what a concept! Everyone should do this if they can, you can even grow them in a pot if you don't have land. And you know those tomatoes won't have salmonella.

And we have a local butcher whose prices are lower or comparable to the chains. But the quality is far superior. We go there when we can to stock up.
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Old 09-20-2008, 06:07 PM
 
18,987 posts, read 24,621,663 times
Reputation: 36483
Quote:
Originally Posted by 58robbo View Post
my dad still runs his old butchery. his prices are about half that of the top supermarket chains. on top of that his products use hardly any packaging, people get better service and a better quality product. surprisingly he still makes decent moolah (some corporate types would be horrified).
so what are people paying these extra prices at the supermarket for?
1 they're paying for convenience of everything in one place.
2 they paying to have exotic things flown in from everywhere all the time (i can assure you that bananas don't grow in michigan in january). before we just used to get seasonal stuff.
3 all that bright, sparkling, environmentally hazardous, hormone skewing packaging is not cheap!
4 selection. these days our choices are endless
5 layer upon layer upon layer of management. now your food incurs the expense of first class flight, tv advertising, celeb endorsement, branding experts, government agents (fda), dieticians, biologists, food technicians, medication, transportation, sterilisation, lawyers, accountants, insurance.........
6 poor use of human resources because people on the ground have no incentive to be less wasteful and more productive.


it might be also worthwhile mentioning that there are a few more people on the planet these days which might have some effect on demand
robbo makes some very good points!!

when talking about food prices, you also have to consider that in the 1970's
only 5-10% of the food dollar went to food service (restaurants, take-out)
today, its 30-40%
many woman didnt work fulltime in the 70's so they had more time to shop and cook,,and thier mothers before them,,where very frugal when buying food.

the supermarket industry is based on loss leaders (flyers) to get folks in the store and hopefully buy (higher margin)items not on sale.
if a person cherry-picks the flyers and stocks up, they can do well, go to the store with a targeted list.
cook at home,,its wayyy cheaper

like robbo stated, if you want to stock up on meat go to a butcher shop, being an independent business (not a chain store) he has price flexibility, the more you buy, the better deal he'll give you.
say you like rib-eye's, you can go to a butcher shop, or independent store and ask "whats the best price you can give me,,,,if i buy the whole rib,,,again, he can give you a better price, the meat manager at the supermarket, cant do this,
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Old 09-20-2008, 07:31 PM
 
Location: America
6,987 posts, read 15,758,353 times
Reputation: 2073
Quote:
Originally Posted by 58robbo View Post
my dad still runs his old butchery. his prices are about half that of the top supermarket chains. on top of that his products use hardly any packaging, people get better service and a better quality product. surprisingly he still makes decent moolah (some corporate types would be horrified).
so what are people paying these extra prices at the supermarket for?
1 they're paying for convenience of everything in one place.
2 they paying to have exotic things flown in from everywhere all the time (i can assure you that bananas don't grow in michigan in january). before we just used to get seasonal stuff. (ding ding ding, thats called inflation sir, via increased transportation cost.)
3 all that bright, sparkling, environmentally hazardous, hormone skewing packaging is not cheap! (Most of which is a byproduct of *drum roll* petrol)
4 selection. these days our choices are endless
5 layer upon layer upon layer of management. now your food incurs the expense of first class flight, tv advertising, celeb endorsement, branding experts, government agents (fda), dieticians, biologists, food technicians, medication, transportation, sterilisation, lawyers, accountants, insurance.........
6 poor use of human resources because people on the ground have no incentive to be less wasteful and more productive.


it might be also worthwhile mentioning that there are a few more people on the planet these days which might have some effect on demand
enjoyed reading this one. Added some info in for assistance!
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Old 09-20-2008, 08:16 PM
 
1,566 posts, read 2,840,741 times
Reputation: 1262
Quote:
Originally Posted by Waterboy526 View Post
Great post! I think this is the reason we saw all these "fancy" mortgages drawn up in order to help people afford homes. Back in the day you had to put 20% down with much higher interest rates. It wasn't easy for everyone to do that, but I would guess that it was much easier back then, then what it is today. People's expenses have went up much higher than their incomes. This is not one presidents fault and not one parties fault...this is our countries fault and we need to figure out some way to fix it. Although with today's global economy things are much different then they were in the past, which is not to say that a global economy is bad.
but our socialist govt want everyone to think they should own a house
a house for everyone is a much easier platform to get elected on as opposed to one based on personal responsibility and consequnces to your actions
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Old 09-20-2008, 09:05 PM
 
6,585 posts, read 23,238,468 times
Reputation: 3208
I don't think folks have noticed the price of a lot of things because they were "paying" for it with credit cards, home equity, dot.com boom gains, 401(k) cash outs. Now, more people have no choice but to pay cash for what they need and when you pay cash you really notice what things cost. It's not "free" anymore.

And then there's corporate greed.
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Old 09-20-2008, 10:11 PM
 
Location: Ohio
21,262 posts, read 15,055,899 times
Reputation: 17676
Quote:
Originally Posted by mainebrokerman View Post
robbo makes some very good points!!
He forgot the most important one. People are giving their money away to shareholders for no reason.
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Old 09-21-2008, 12:24 AM
 
1,020 posts, read 2,298,258 times
Reputation: 546
Consider this: the average new home in the 70s was ~900-1200 sq ft. Today, it's about 2200 sq. ft. Equation solved for that one, lol. Not to mention, many amenities that are basic today were luxuries back then (dishwasher, built-in microwave, fridge w/ ice dispenser) not to mention new luxuries (granite countertop, stainless steal appliances). Pools, golf communities, etc. etc. etc. it's no wonder the average home went up so much.

Same thing with cars. Stricter environmental and fuel efficiency regulations caused a shift from only automotive/mechanical technologies to electronic ones as well. People having flat screen TVs on every damn seat, nook, and cranny in their car. Rims. Hell, back in those days, AC was a LUXURY item-- today it's standard!

As for food, I would argue that it's stayed the same or gotten cheaper on a PER UNIT basis (adjusting for inflation). Have you compared a burger from the 1970s to one today? It's like comparing Jupiter to Earth in size! Portions have gotten much larger in restaurants, packaging held more until the recent corn/grain shortages...

The problem isn't that things are getting more expensive with inflation, it's that we're making them bigger/fancier!
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