It was recently announced that Procter & Gamble has plans to go up on the prices of several of its key products in response to the rapidly increasing inflation.
CNBC went on to report that the company put forth the announcement during an earnings call this past Wednesday, stated that it has already told its carious retailers about an upcoming increase of the prices of select groups of their products, “like Tide detergent and Downy dryer sheets, slated to take effect Feb. 28. On Tuesday, the company told retailers that some personal health care products will see higher prices in mid-April.”
The company has already posted a series of price increases on ten sets of items, including “baby care, feminine care, adult incontinence, family care, home care, hair care, grooming, oral care and skincare,” as reported by CNBC.
“The degree and timing of these moves are very specific to the category, brand, and sometimes the product form within a brand. This is not a one-size-fits-all approach,” CFO Andre Schulten stated while on an earnings call.
This price increase is also projected to impact international consumers, not only those in the states, reported The Hill.
The company also seems to be hoping that consumers will just continue to buy from their familiar brands, despite the increasing prices, rather than trying to swap to a new perhaps less expensive alternative.
“Pricing has been a positive contributor to our top line for 17 out of the last 18 years, 42 out of the last 45 quarters. When you have a business model that’s founded on innovation that provides higher levels of delight, solves problems better upon the consumers, you are able to charge a little bit more,” stated CEO Jon Moeller in a segment on this past Wednesday’s episode of CNBC’s “Squawk Box.”
“While it’s very early for these commodity-based price increases, to date, we see positive signs,” Moeller stated on “Squawk Box.” “Probably 20% to 30% less price elasticity than we were expecting, and if you look at, for example, private-label market shares — private label being the lowest price offered on the market — they’re down.”
Moeller went on to note that there could still be many problems coming down the pipes that are connected to prices.
“There will be bumps in the road,” he stated. “There will be cases where we take pricing, and we either encounter the consumer reaction that some of you are rightly looking to or a competitive reaction.”
All of this comes to light as most companies continue to try and adjust for the rapidly rising inflation rate and supply chain issues, all the while customers have been changing their expectations and altering their budgets for the new year.