Consumers cutting back
Yesterday, I was at the grocery store picking up some food for a salad. Usually, I toss all manner of things into my cart like seltzer water (which I occasionally indulge in, instead of drinking soda), a bag of pretzels and some frozen food (for those late days when I don't have time to make a salad or cook something up because I'm writing all day).
This time, though, I found myself talking myself out of purchases. Don't buy that cheese, it's a buck more. Do you really need a loaf of bread that will go stale before you get a chance to eat it? Sure, you love blueberries, but at $4.99 for a small plastic container I can do without.
Don't get me wrong. It's not as if I'm depriving myself. But I am not as foot-loose and fancy free about buying groceries as I used to be... not when my electric bill, gas tank costs, and taxes have crept up higher and higher. I've never been one to eat out a lot, but I do find myself ordering Chinese food, pizza and the local take-out Mexican food place even less often now, too (although, my waistline does thank me for it).
I was just absent-mindedly thinking I could cut my pay-for-TV provider, too, since I don't find myself watching much of anything outside of the four or five basic channels I can get for free. Funny how your needs adjust to the economy without you even realizing it, huh? My colleagues Hanah and Jamie wrote a very interesting piece yesterday on how consumers are cutting back on spending these days, and how that's affecting small businesses.
If you didn't catch it, you should give it a read. If restaurants are spending more for their supplies, they'll eventually have to pass on those costs to us, the consumer. If prices go up, consumers will likely cut back even more. If consumers decide to cut back on going out or they're spending less when they're out, it hurts a restaurant's bottom line. It's an ugly cycle.
Anyone else feeling the pinch yet? Anyone hear of any other businesses closing down because their customers have cut back or it's getting too expensive to operate anymore? Please drop us a line and let us know.
Categories: Budgeting, Cheap/Frugal, Personal finance
