We hear it almost every day, price increases due to inflation. Since 2020, we have been watching this happen across all goods and service sectors. In dealing with the restrictions imposed by the pandemic, spending surged, yet once those restrictions were lifted, it directly contributed to an increase in inflation and now, the average person cannot rely on stabilized pricing.
What does this really mean?
Essentially, there is a decrease in purchasing power. Companies, and consumers alike, are relying more heavily on credit as they have fewer funds available.
How does it relate back to our industry?
The Canadian dollar is almost on par with offshore production. Years ago, producing overseas was a very cost-effective solution. Appropriate timelines were built into projects and the streamlined organization of this process allowed for many successes. Today, that is not the case. With the elevated cost of materials, containers, and fuel, the advantages that accompany building elsewhere no longer exist. Now, companies are being strategic in offering solutions for domestic production. This benefits many industries, and tackles hurdles that were an issue in the past, like shipment delays, tariffs, and taxes.
Today’s landscape highlights that local production is an improved solution. Not only does it allow for better project management and direct eyes on said project, but it also creates more local job opportunities. This in turn, gives local manufacturers the option to build with different materials, for example, elements once built out of lumber can now be built out of metal or even recycled HDPE. According to Stats Canada, Transportation is one of the biggest contributors to increased inflation! Why not produce at nearby facilities to help combat this? Alternative merchandising methods, online resources, using different channels at a lower cost method allow for implementing various materials that benefit the overall bottom line.
Gorrie and its team members from a consumer standpoint, are equally feeling the pinch. It’s obvious when getting gas, buying milk, diapers, produce, and essential items, we all try to find savings where we can. Rising interest rates make it more expensive for families and businesses to borrow and spend. The irony is, after having been cooped up for more than two years, everyone wants to gain normalcy and spend in areas that they once did before. One thing that we still need today are cost savings, where can we find the best price or a get a little help when shopping? Here are a few apps that we recommend using to help:
Flipp is a technology platform that reinvents the way people plan their weekly shopping trips. Some of the largest retailers, brands, and digital publishers in North America use Flipp to curate and create distribution savings content to millions of highly-engaged shoppers every day. If you’re looking for the most cost effective product in a specific radius, the app will provide you with the retailer’s info so you can find the best price!
Ampli is the Canadian cash back app that gives you real cash, not points, on your everyday purchases. Similar to Flipp, Ampli is a free app! It securely connects debit and credit cards from over 130 Canadian financial institutions.
Klarna is a buy now, pay later service! They offer no interest payments spread over the course of four months, so each payment is a percentage of the full price. This BNPL app is attached to your favourite stores and breakdown the large upfront purchase price so it is easier to amortize it over a period of time. This is great to get something special for yourself or loved ones. Apps like Ampli, Flipp and Klarna are benefitting consumers more than ever before. With this magnifying glass zooming in on daily and weekly expenses, and monthly bills, the average person doesn’t want to give up the niceties that bring them that little bit of joy. Whether it’s splurging on a specialty item or finding gift ideas to spread joy to others.
Here’s to a brighter and lighter time, let’s use the resources available to help ease some of today’s pricing pressures.
