Proctor & Gamble to Hike Prices
Consumers were already paying more at the supermarket once COVID-19 hit, but we should get ready to pay more for personal products and other necessities as Proctor & Gamble (P&G) announced this week that it is raising prices on many of the products that we use in our homes each day.
Household cleaning supplies and detergents, as well as baby, feminine, and adult care products are among many of the items that will see price hike. P&G says it is raising prices because raw materials are getting more expensive.
They join others, such as Coke and Kimberly-Clark, who also raised prices during COVID-19 to protect their profit margins. These companies are counting on consumers to continue wanting their products, even at the higher price point. They believe that consumers are willing to pay more for the name brands versus a cheaper generic version. To counter controversy and hold on to its market shares, the company plans to increase the perception of the products with consumers and introduce new or upgraded products.
P&G’s Chief Operating Officer Jon Moeller told analysts “This is one of the bigger increases in commodity costs that we’ve seen over the period of time that I’ve been involved with this, which is a fairly long period of time.” P&G indicated they would raise prices of certain products in the United States to offset rising costs that were already weighing on its fourth quarter in a press release from the company.
Starting in mid-September, P&G said it will charge retailers like Walmart, Target and Costco roughly 5% to 9% more and each store can then decide whether to pass along the costs to consumers.
Consumers should consider store brand goods which include quality products which cost less. Also, consider signing up for store emails and their coupons.