By JLP | September 4, 2013
The other day I was grocery shopping at H-E-B. I stopped by the orange juice section and noticed something new. Tropicana had changed up their packaging and was now offering a “Family Size.”
Upon on closer inspection, I learned that it was a 118 oz. container, or 10 oz. short of a gallon. So, the GALLON was gone and the replacement was called “Family Size.” Apparently, Tropicana thinks their customers are stupid.
Oh, and guess what…
The price was STILL $6.49.
So, customers now get 10 fewer ounces and pay the same price, which equates to an 8.47% price increase. I guess jacking the price up from $6.49 to $7.04 would be too much for customers. Better to go the sneaky route.
Grocery shopping is so frustrating these days.
UPDATE: A friend of mine pointed me to this article as to the reason why orange juice prices are rising: Incurable Disease Threatens US Citrus Crop.
By JLP | August 19, 2013
President Obama creates Obamacare. He makes 30 hours a week “full time” and forces employers to provide health insurance for “full time” employees. Employers respond by slashing hours below 30 hours per week.
What did the Obama Administration expect would happen?
People can gripe all they want but businesses and people operate on incentives. Politicians tend to forget this.
Perhaps the Obama administration expected exactly this would happen in order to pave the way for…
A single-payer system.
By JLP | August 2, 2013
One of my readers asked for S&P 500 rolling returns based on the calendar year instead of all the months. It does simplify things as it takes each report down to two pages instead of 19.
So, here are the results:
By JLP | August 2, 2013
I see ads all the time for that say stuff like:
“Drivers who switched from State Farm to Allstate saved an average of $362 a year.”
This reminds me of the time when I called my insurance agent to ask a question about our policy and she talked me into a different plan with the same company because it would save us lots of money. So, I went from a one-year policy to a six-month policy. The premium a little over half what I was previously paying. All was great until the 6-month renewal, which increased a lot. I wasn’t happy.
Anyway, back to the ad…
Two things to consider:
1. It’s only savings if the two policies are the same. Insurance companies can and will shave off benefits and call the reduced premium “savings.” Perhaps the reduced coverage is okay. It’s up to you. Just make sure you know what you are getting.
2. Don’t expect the same low premium upon renewal (think about the really low rates for first time subscribers to newspapers. The rate is incredibly low and then incredibly expensive upon renewal). It’s a pain to change insurance companies. Insurance companies know this. That’s why they tell you how much you can save by switching. But…they don’t make money if they are charging a lot less than everyone else.
In another month or so, our household will have our second teenage boy licensed driver. Ugh!
Pray for me.
By JLP | August 1, 2013
After the June hiccup, the S&P 500 and other indices I follow here on AFM kept on marching. The S&P 500 had a total return of 5.09% in July. In the 53 months since February of 2009, which marked the beginning of the current bull market, the S&P has had 38 up months and 15 down months (a 151.97% total return in those 53 months).
It still bothers me the way the price of oil is moving in tandem with the stock market (the price of crude is up 115.62% since February 2009).
By JLP | July 24, 2013
Two people in the last couple of days emailed me, asking for an update on the S&P 500 5 and 10-Year Rolling Total Returns reports.
Here they are:
Each report has a cover sheet with some summary information. Please email me if you have any questions (JLP – at – AllFinancialMatters.com).
I’m aware of the typo on the 10-year report that says “5-Year period” on each page. I’ll fix and repost asap. Fixed.
By JLP | July 22, 2013
An article in today’s WSJ talked about how companies should and should not raise their prices.
Honestly, I think the best way to do it, is just raise them. Don’t cover them up by trying to be sneaky. I hate size reductions and fewer products per package (even thigh the package stays the same size). Or, add new fees like AT&T did a couple months ago by adding an administrative fee of $.61 per wireless account. Or, start charging a rental fee for hardware like Time Warner did last year. ANNOYING.
If you have to raise prices, just do it.