I know I am getting old(er) when I start saying things like “I can’t believe I can’t get a pair of wool pants for $25 anymore!” or “I remember when movies were just $5 a ticket!”. New year, new pricing increases, so I found this article: 11 things that will be more expensive in 2012 from Deal News pretty interesting. Can you guess what’s on the list?
The #1 item on the list is airfare – domestic and international. Because of fuel costs and increased regulatory fees, flying is going to become a more expensive proposition for all of us. According to American Express, prices within North American will increase up to 5% for economy and 7% for business class. I’m not surprised, but for someone who loves to fly, this is a big bummer. I probably have spent a few thousand dollars on flying in 2011 – nothing fancy, but traveling on a short notice (ahem business school visits) can really up the fares. I’ve paid as high as $600 for a cross-country round-trip. Won’t lie, that one definitely hurt.
In 2012, I expect to be spending a fair amount on airfare as well. But I’m hoping that with judicious application of co-branded credit cards, I can subsidize my air travel. For example, our honeymoon flight to Buenos Aires is going to be under $500 for the two of us. Quite proud of that one, I am.
The other items on the More Expensive List:
#2 new digital cameras
#3 hard drives
#4 desktop computers
#5 food for home preparation
#6 mobile device data plans
#7 city-enforced fees
To this list, I’d add a few items of my own:
#12 movie tickets – it costs studios more and more money to produce the big-budget blockbusters that are guaranteed to pack theaters, and so ticket prices are sure to climb as well. 3-D movies also add an additional $3-$5 on top of regular movie tickets. Right now it costs $11-$12 for an evening ticket, and the ONLY reason CB and I are still avid movie goers is because we can buy $7.50 tickets from Costco.
#13 clothes – the price of cotton has been going up for a couple of years, in addition, the costs of labor and transportation have also increased. You know these higher costs of production will be absorbed by consumers in the form of higher prices.
#14 tuition – college, graduate school, you name it, and the prices are probably going up. In fact, the Cal State trustees just approved to raise tuition by 9% for 2012. When I look at the Tuition & Costs page of business schools, all the figures have a disclaimer that goes something like this “costs typically increase 3%-5% per year.”