I just saw this on CNN about the cost of flour going up:
They interviewed a pizza place and they said a 50 pound bag of Gold Medal flour cost them $37.
oh yeah! Saw this last week....the economy is just so bad right now. Kinda makes ya sad
Actually, its not only the flour but the cost of eggs and dairy products as well. It is estmated that these basic products have or are going up to almost 30%!!!!
Yep, I've had to totally redo my pricing if I make a cake for someone... I hardly even make a profit now, if I keep my original prices. Where I live, flour has more than doubled, eggs have doubled in price, Crisco has gone up over 1$ a container, etc...
Yep, my supplier just told me that a 50 pound bag is now about $45.00 double over last year.
Eggs have gone from .03 cents each to about . 09 cents each.
People that are saying that the economy is not affecting their profits nor are they seeing the pinch scare me.
Wondering what they are doing. Aren't they paying the same type of prices the rest of us are paying for supplies?
maybe i should go back to costco and stock up
Gas prices are so ridiculously high that it has to affect every single thing we purchase, it was only a matter of time. I use box mixes exclusively and you can bet I've been slowly stocking up because it's only a matter of time until the prices on them go out of sight as well.
It's really very scary when you think about it. Even people with good credit are beginning to have trouble financing large purchases...when the banks stop lending reliable people money, that is NOT a good sign.
My business has dropped a great deal in the last few months and even with that, I just finished a new pricing structure with higher prices yesterday. I can't do this and lose money, I had no choice.
Luckily I have a new client who is a party planner for some very wealthy people and they have no qualms about ordering expensive cakes so my bottom line isn't a problem right now. However, those everyday birthday and celebration cake orders are disappearing fast, and that worries me.
Prices here totally suck. Everything has gone up. I used to be able to buy eggs for a $1 a doz., shortening for $1.79, and milk $2.50. Now everything is almost double. I am going to stock up on cake mixes also. I wondered when everyone was going to start to raise their cake prices. I don't see any choice.
justme50, it's not just the price of gas, but the diverting of corn from food supply to gas production. Basic Supply-n-Demand laws apply in full force. Corn affects everything in the grocery.
My eggs are $0.144 each now and I buy them in volume from GFS and Sysco. Based on my excel chart, where I track this stuff, it's a 78% increase in just 6 months. Crisco has increased 15% and salad dressing has increased 25% in just the last quarter. Pasta in general, has gone up 38% this quarter. My 50-lb bags of flour went up $6 a bag in just 3 weeks. From about $18-$19 a bag to over $25 a bag. In just 3 weeks. I remember buying a 50-lb bag for under six bucks!!! And that was just a couple of years ago! That's a 500% increased in a couple of years.
I used to do one annual price increase. I'm going to do at least two increases this year, maybe 3, just to keep up.
And what justme50 said about people with good credit being affected. I belong to an organization that has a number of finance people in it. One was talking about having a client with a credit score of over 800 and he couldn't find financing for her. Realtors will tell you interest rates are at a 27 year low and now is the time to buy, but finance folks will tell you the money supply is really, really tight.
We went out to eat at a local mom & pop Italian restaurant. They make wonderful pizzas and most of their pasta from scratch. They told us that they were going to have to raise their prices because the price of flour. They make all of their pizza and bread dough from scratch...can't imagine!
I have noticed Publix bakery goods have gone up too. The price of doing business is going up and up.
indydebi, it's also that they are using fields to grow corn where they would have grown other stuff, thereby bringing the supply of other crops down, bringing the prices up.
I too have noticed the increase in prices,especially baking supplies. I have raised my wedding cake prices but I haven't even thought about raising the price of regular cakes. I'm not doing any anyway right now.
Those of you that use cake mixes, when those suckers go on sale my advise is to stock up.
Unfortunately flour, if it's not stored in a cool dry place tends to blossom with bugs! lol
I've been weighing the eggs in my recipes and will be buying frozen eggs, which initially may cost me more out of pocket but eventually can be cost effective when the price of eggs continues to rise.
Milk? Don't even get me started on that, milk is costing me more than a gallon of milk by me.
I've been thinking off putting up a sign:
"Due to the cost of Gas and quality ingredients our prices have been raised 10%, which is still lower than the price increase of 27% of your supermarket"
It's very tough out there, I live in an area that was selling houses at 600 g's and up and now houses have dropped to about 300 g's and people still can't afford them and the banks aren't lending any more money unless your credit is stellar.
My husband right now, lost his job and while we were building our credit standing, we are now 2 months behind.
That's going to really hurt us if we can't catch up.
You hit it right on the head Indydebi!
I watch what the people with the money do and when they aren't handing it out, it really is a sign that things are going to get much worse before they get better.
I'm not usually a "the sky is falling" kind of person, but in this case, I don't think I'm anywhere near over estimating just how bad the economy is going to get.