Procter & Gamble is prepared to roll out a new round of price increases across a variety of product lines beginning later this year and continuing into 2019.
Heads up: These products you use every day will be more expensive
The Cincinnati-based consumer goods giant revealed on an earnings call that it’s readying new price increases on “several products in Home Care, Oral Care and Personal Care.”
While it hasn’t yet named specific products that will see a price hike, P&G’s roster of consumer staples includes Head & Shoulders shampoo, Dawn dish detergent and Olay moisturizer, among others.
The upcoming round of price hikes will be the second that P&G pushes through this year. The first round, which affected the Baby Care and Family Care categories, was announced in late July.
So is P&G just getting greedy with a second price increase so soon? Not exactly.
There are a number of market factors driving up material and transportation costs across the industry, including 50% increases in oil as a raw material and 25% increases in transportation and logistics.
Because those cost increases are widely known, the company isn’t expecting significant push-back from retailers when the price hikes go into effect later this year and early next year.
“In terms of support for pricing, the commodity cost impacts we’re talking about are significant,” executive Jon Moeller told Wall Street analysts.
“And those are all costs that retailers see and understand, in large part because they face the same cost increases in their private label brands, and certainly from a transportation standpoint, they’re seeing all the impacts that we are in and more.”
But consumers aren’t likely to be as forgiving when it comes to jacking up the price on staple purchases!
How to save money on your favorite P&G brands
Just because the consumer goods industry is facing tighter margins as they pay more for shipping and raw materials, it doesn’t mean you have to feel their pinch in your wallet!
Here’s how to save money on your favorite P&G brands…
Buy copies of the Sunday newspaper for the coupons
If you’re going to remain loyal to name brands, you might as well save money on them!
If you live in a metro area, you may be able to find free Spanish language newspapers in your town that have these inserts. (Be sure to leave copies for others, too!)
Check the clearance rack
Talk to your store’s manager and find out where they keep the clearance items. Many stores will have a dedicated rack or shelf. It’s also helpful to know when new stock is added to the clearance rack or aisle.
If you’re first to find it, you can score some real deals!
Shop at a discount grocery chain
According to this recent article, P&G is among the name brands stocked at Lidl, a new discount grocery chain located in a handful of states on the Eastern seaboard.
Lidl is similar to Aldi, but the former generally offers more name brands than the latter.
Either way, shopping discount grocers can save you up to 50% off your grocery bill if you’re used to shopping at traditional supermarkets.
Use a cash-back credit card
The American Express Blue Cash Preferred Card offers 6% cash back on groceries, up to a max of $6,000 annually.
But there are two caveats here: First, the card has a $95 annual fee you should know about. Second, you must be sure you pay your bill in full each and every month — or else you’ll rack up more interest charges than you’ll receive in cash back!