Recently, I went out to buy lunch and I noticed that fast food prices are starting to fall just like oil prices. Wendy’s, McDonald’s, Burger King, and a few other places are competing so hard for our money that they are offering incredible deals. I know that eating fast food isn’t good for me, but let me finish my thought first, and then you can yell at me later.
The big picture is that there is an economic slowdown starting to occur that is going to affect all of us in one way or another. If I can see this trend easily, then I’m sure that many of the companies that sell products are seeing the same.
It’s happening slowly, but if you are watching closely like I am, the prices for consumer goods are falling to unbelievable levels. Deals are being advertised everywhere as spenders, like you and me, are beginning to understand that we have the power to move or don’t move the products that these corporations are selling. Yes, I said that correctly, you have the power as a consumer to determine the prices that you pay for your merchandise. But, we have to learn how to use this power wisely in order to get the best value.
A few days ago, the car dealer called me for the umpteenth time asking me to come in since they have a terrific promotion that I won’t be able to turn down. A car insurance company also called several times stating that they will offer me a deal that will lower my current bill. The supermarket chain that I go to often offered me a deal where if I purchase my groceries online, they will not just give me a discount, but they will deliver the groceries free of charge.
There are more examples but I will stop here. In short, there are some fantastic deals that will be coming down the road for average people like you and me. As a person trying to stretch my funds, and I’m sure that there are lots of people like me who are doing the same, I love to see lower prices. But like everything, there is a catch to this process that we all need to be fully aware of.
As these companies compete against each other, they will be lowering their prices to get rid of the inventory, which is the good news part of this article. We have the opportunity to get more for our money and also keep some in our pockets for the next day.
However, as good as this benefit is for us, there is a bad side. In this scenario, as the companies provide discounts to move their products, their revenues will be much lower than their projections. This leads to lower profits and this normally means there will be expense reductions to offset these lower profits. We all know that this translates into job losses, and this is the bad news. As this continues, the smaller stores will be forced to go out of business as they can’t compete with the large chain stores like Costco, BJ’s, Big Lots, and Walmart.
You make ask, “What should I do?”
I suggest that you take advantage of these lower prices while you can. I have enlarged my pantry so that I can store more merchandise. I’m buying an extra freezer to load up on frozen food. I’m also thinking about buying a shed for the backyard where I can store more items that my family may need at some point in the future. In other words, since I have seen this trend before, I’m going to load up on these cheap items so that I get the most for my money.
In closing, we are currently living in a buyer’s market where sales are endless. If an opportunity arises where you can get a great deal for your hard-earned money, you should take it. I’m doing it and you should alert your loved ones to do this too. However, please don’t go into debt buying things you don’t need or aren’t good for you like the delicious french fries at McDonald’s. As much as I may be tempted, don’t worry, I’m going to stay away from fast foods. Also, if you choose to ignore my suggestion and run out of supplies in the future, don’t come knocking on my door. I’m sorry, my inventory is already accounted for.