The Homa Files

Excerpted from BusinessWeek, “CEO: Clorox rolls back prices, more cuts possible”, by Vinnie Tong, January 9, 2009

* * * * *

Price hikes on some consumer staples may be hitting their limit.

As prices for oil, gas and plastics rose to unprecedented heights last year, most major consumer products companies raised prices for a range of staples, including pet food, toothpaste and toilet paper.

Now that commodity prices are easing up and consumers face a financial crisis, some companies are cutting prices to attract shoppers.

Clorox has rescinded a 10 percent price increase on Glad trash bags that took effect in October, for example. And many of the hikes Clorox had planned for the first half of 2009 have been abandoned.

“Competitors will definitely do the same. We’ll see that the people who took pricing aggressively are going to have to give it back aggressively. Companies that took more measured pricing will have less pressure.”

Edit by DAF

* * * * *

Full article:
http://www.businessweek.com/ap/financialnews/D95JS7380.htm

* * * * *

Want more from the Homa Files?
Click link =>  The Homa Files Blog

* * * * *

This entry was posted on February 2, 2009 at 7:11 am and is filed under Mktg - Pricing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.