We know it’s not just our imagination that the cost of virtually everything has exploded the past few years. Depending on which side of the political spectrum you reside, you can blame the government, inflation, the supply chain, worker productivity, greedy merchants and/or manufacturers, union demands, minimum wage, and the list goes on. But regardless of who you blame, the fact is, costs are up and continue to climb.
But some businesses are trying to maintain the appearance of price continuity while expanding their profit margins in ways extraneous to their core business cost. This price creep is insidious and often hidden in plain sight. Take for example grocery stores. Not to give credence to the ludicrous idea of establishing yet another government entity to monitor store prices to insure against price gouging, but you’ve all experienced the small add-on grocery chains have implemented the past few years.
It began with the ill-conceived notion that paper bags posed an ‘existential threat’ to the environment. So those brown paper bags gave way to the single use plastic bag. Then these bags also became an ‘existential threat to the environment’ by clogging landfills. Soon they were outlawed to be replaced by heavier duty, reusable plastic bags that grocery stores could now charge you for. A dime a bag was not excessive, but those dimes added up and added to a grocer’s bottom line without impacting the price of goods.
Of course today new studies show that people are throwing away those heavier bags at the same rate as before, increasing the pressure on recyclers and landfills. Now those heavier duty plastic bags are being replaced by what? Paper bags! So what we used for generations for free, we’ve now come full circle and use the same bags at 10 cents a pop. Meanwhile the cost of groceries has skyrocketed so that extra $.10 seems like a bargain while we now check ourselves out. But it all adds to the bottom line.
How about airlines? If you’re old enough you remember when you could check as much luggage as you wanted and it was FREE. Today there’s still one or two carriers that let you check up to two bags for free, but most charge $50 or so for the first bag and even more for additional bags. Overweight bags? Pay up. Want to stuff everything into a couple carry-ons? You’ve got number, size and weight restrictions on those too, plus a couple airlines are charging if you want to carry anything on. Want a window seat, a little extra legroom in an emergency row, want to sit with your family? Pony up.
Many years ago, I dated a stewardess, sorry, flight attendant, for a smaller regional airline. They served a petite lobster tail and small filet on flights over 2 hours along with all the cocktails and wine you could swill in the allotted time. Today you’re lucky if you get a free small glass of soda. Dining on a boxed lunch and a glass of wine in an airplane today will set you back about as much as dining in a decent sit-down (non-airport) restaurant. But it all adds to the bottom line.
And don’t get me started on hotels. Your flight gets in at 10 a.m. and you’d like to check in and freshen up before your 1 p.m. meeting? Sorry pilgrim. If a room is even available many hotels are charging $40 or more to check in before 3. Got a late flight and you’d like to check out a little later? Sorry. Check out time is 11 a.m. but if you wait until noon it’ll be $50. After 1, that’ll be $75. After 2, that’ll be $100. Later than that? You might end up paying for another night.
I understand some of this pressure. Especially after La Rona, airlines and hotels had to keep their prices low to entice travelers back while recouping some of the money they lost during the lockdown. Early check in or late check out means a hotel may have to pay their cleaning crew to start earlier or stay later. That comes out of their bottom line or might add to the cost of all rooms directly.
Want a seat with a little extra legroom? So do a lot of people over 5’2” who have trouble fitting into the newly redesigned, and reconfigured, and compacted airline seats. So supply and demand dictates you’ll pay more for that ‘luxury’. Don’t want to pay $27 for some cheese, crackers, 3 dried grapes and a glass of wine? Eat before the flight or bring your own, as long as it fits in your carry-on, doesn’t contain any liquid over 3 ounces, and you don’t mind dirty looks from your seatmates about the aroma of your tuna and gorgonzola charcuterie.
Don’t want to pay $.10 a bag for your groceries? Just carry around a plethora of bags in your car that you can use as you check yourself out. Just don’t forget to repack them after you get them home and unloaded or your next shopping trip will cost you $.50 more.
Well, in the overall scheme of things, these small costs and inconveniences probably aren’t life changing events. As long as the product or service retains its value, consumers will pay a little more for the convenience. But judging from an increasing number of negative comments on social media, it would appear that a growing number of consumers are stretched beyond the breaking point and are starting to fight back against this price creep. Good luck with that.