Mr P
,
Tom Barlow
Jun 30th 2010 at 3:00PM More Text SizeAAAFiled under: Bargains, Food, Home, Recession, Economizer
Thanks to inflation, what cost just a buck in 2000 would cost $1.27 today. Happily, the price of some products has not kept up with that inflation; and in some cases, they are even cheaper today than ten years ago. What can you buy today that gets you more bang for your buck? WalletPop uncovered some of these treasures and teamed up with Mint.com to present this infographic on the top items on our list. See below for the raw data from the 20 most unusual items that cost less today:
Why haven't the prices of these items kept up with inflation? There are a number of possible explanations.
Market competition helped minimize the increase in some of these items; aspirin and airfares are two good examples. Some prices were directly affected by the market collapse, such as Walmart stock, while the drop in the cost of a house loan has come about at least in part due to government monetary policy.
Other companies found it difficult to increase prices enough in the face of a recession to keep up with inflation; Harley-Davidson and its Sportster motorcycle, for example. The recession also brought about a drop in discretionary spending, one reason for the decline in value of the Hummel figurine.
Still other companies found ways to lower the cost of production of items, allowing them to give more value for a better price; the Sears paint and Volkswagen Golf are likely examples of this. Polished logistics allow streamlined shipping of items such as bananas and apples.
Finally, diminishing demand has forced some industries to cap price increases; the CD industry, for example, must compete with the $0.99 download.
Here is an expanded list of products that sell for less today than what we might have expected, given inflation since 2000.
Product 2000 price Expected 2010 price w/ inflation Real 2010 price Savings
Hummel "To Market" figurine $120.00 $152.40 $49.99 67.20%
Martini and Rossi Asti Spumante $12.99 $16.50 $8.29 49.75%
$200K house loan, 30 yr. fixed, total payout $610,560.00 DNA $455,760.00 41.22%
Bayer aspirin, 100 ct. $7.69 $9.77 $6.49 33.55%
Wal Mart stock $53.75 $68.26 $48.80 28.51%
Music CD $14.04 $17.83 $13.02 26.98%
Sears Best Easy Living
interior paint, satin $19.00 $24.13 $18.00 25.40%
Average domestic airfare $318.00 $403.86 $319.00 21.01%
Average wedding cost $18,900.00 $24,003.00 $19,581.00 18.42%
Nike athletic shoes for NBA player of the year $150.00 $190.50 $160.00 16.01%
James Patterson bestseller $25.95 $32.96 $27.99 15.07%
Volkswagen Golf base model $15,900.00 $20,193.00 $17,490.00 13.39%
Vita-Mix blender 5000/5200 $400.00 $508.00 $450.00 11.42%
Starbucks house blend 1 lb. beans $9.65 $12.26 $11.37 7.23%
Bananas, 1 lb. $0.49 $0.62 $0.58 6.80%
Levi's, men's, 505 $36.99 $46.98 $44.00 6.34%
Red delicious apples, 1 lb. $0.95 $1.21 $1.16 3.85%
McDonalds Big Mac $2.50 $3.18 $3.09 2.68%
Sears DieHard Gold North car battery $80.00 $101.60 $99.99 1.58%
Harley-Davidson 883 Sportster motorcycle $5,595.00 $7,105.65 $6,999.00
Read more: 20 products that are cheaper today than 10 years ago
Jun 30th 2010 at 3:00PM More Text SizeAAAFiled under: Bargains, Food, Home, Recession, Economizer
Thanks to inflation, what cost just a buck in 2000 would cost $1.27 today. Happily, the price of some products has not kept up with that inflation; and in some cases, they are even cheaper today than ten years ago. What can you buy today that gets you more bang for your buck? WalletPop uncovered some of these treasures and teamed up with Mint.com to present this infographic on the top items on our list. See below for the raw data from the 20 most unusual items that cost less today:
Why haven't the prices of these items kept up with inflation? There are a number of possible explanations.
Market competition helped minimize the increase in some of these items; aspirin and airfares are two good examples. Some prices were directly affected by the market collapse, such as Walmart stock, while the drop in the cost of a house loan has come about at least in part due to government monetary policy.
Other companies found it difficult to increase prices enough in the face of a recession to keep up with inflation; Harley-Davidson and its Sportster motorcycle, for example. The recession also brought about a drop in discretionary spending, one reason for the decline in value of the Hummel figurine.
Still other companies found ways to lower the cost of production of items, allowing them to give more value for a better price; the Sears paint and Volkswagen Golf are likely examples of this. Polished logistics allow streamlined shipping of items such as bananas and apples.
Finally, diminishing demand has forced some industries to cap price increases; the CD industry, for example, must compete with the $0.99 download.
Here is an expanded list of products that sell for less today than what we might have expected, given inflation since 2000.
Product 2000 price Expected 2010 price w/ inflation Real 2010 price Savings
Hummel "To Market" figurine $120.00 $152.40 $49.99 67.20%
Martini and Rossi Asti Spumante $12.99 $16.50 $8.29 49.75%
$200K house loan, 30 yr. fixed, total payout $610,560.00 DNA $455,760.00 41.22%
Bayer aspirin, 100 ct. $7.69 $9.77 $6.49 33.55%
Wal Mart stock $53.75 $68.26 $48.80 28.51%
Music CD $14.04 $17.83 $13.02 26.98%
Sears Best Easy Living
interior paint, satin $19.00 $24.13 $18.00 25.40%
Average domestic airfare $318.00 $403.86 $319.00 21.01%
Average wedding cost $18,900.00 $24,003.00 $19,581.00 18.42%
Nike athletic shoes for NBA player of the year $150.00 $190.50 $160.00 16.01%
James Patterson bestseller $25.95 $32.96 $27.99 15.07%
Volkswagen Golf base model $15,900.00 $20,193.00 $17,490.00 13.39%
Vita-Mix blender 5000/5200 $400.00 $508.00 $450.00 11.42%
Starbucks house blend 1 lb. beans $9.65 $12.26 $11.37 7.23%
Bananas, 1 lb. $0.49 $0.62 $0.58 6.80%
Levi's, men's, 505 $36.99 $46.98 $44.00 6.34%
Red delicious apples, 1 lb. $0.95 $1.21 $1.16 3.85%
McDonalds Big Mac $2.50 $3.18 $3.09 2.68%
Sears DieHard Gold North car battery $80.00 $101.60 $99.99 1.58%
Harley-Davidson 883 Sportster motorcycle $5,595.00 $7,105.65 $6,999.00
Read more: 20 products that are cheaper today than 10 years ago
