Today’s post is by Danielle Begley, Account Manager at SafeSourcing.
Thanksgiving 2011 is one of the most expensive, if not the most expensive, ever. How can this be? According to a report from ABC News, travel and food costs are at an all-time high. Hotels are up 5% this year, turkey is up $3, and even pumpkin pie is up in price by $0.41! The culprit for these increases: rising gas prices, which are up about $0.50 per gallon compared to last year? If gas prices are affecting Turkey Day, what about Black Friday and Cyber Monday?
Black Friday is notoriously known as the busiest and most lucrative day for retailers. On its heels is Cyber Monday which has become almost equally as profitable, both of which follow one of the most expensive holidays this year. Prices for those must-have gifts inevitably are higher this year as well as gas prices have inflicted higher cost burdens for the retailer, who inevitably impose those cost increases to the consumer. Although it may be a little late to prepare, this expensive turkey day provides a lesson in preparation for the year to come.
The consumer has numerous options to beat the rising costs. Purchase non-perishable goods such as pumpkin and soups early in the year to avoid High Holiday costs. Traveling on Thanksgiving? Book flights ahead of time, and if possible travel on Thanksgiving, or postpone celebrations to the week after which will provide lower fares.
For the retailer, preparation and consultation with your strategic sourcing partner is key. Following a similar plan as the consumer, purchase excess non-perishable goods earlier in the year. Products and gifts that you know will be successful should also be bought in large quantities in advance. This will not only help your wallet, but it will also allow you to have remaining inventory once Black Friday and Cyber Monday hit. Beyond purchasing in advance, why not incorporate an escalator/de-escalator clause into your contracts to ensure you are not as heavily affected by the price inflation of oil.
Even though 2011 is one of the most expensive years to celebrate Thanksgiving, you can find alternatives to paying the higher prices. Contact your strategic sourcing partner today so you can begin developing a plan for a Happy 2012.
For more information on SafeSourcing and how we can assist with this process, please contact a SafeSourcing Customer Service Representative for more information.
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