Procter & Gamble Co (NYSE:PG) increased prices for its utilitarian items, a move that will compel product consumers to pay more. The company feels the pressure from the rising commodity costs and fears that those costs might frustrate its business. It has finally decided to raise prices on staples as part of its efforts to run a balanced business. However, makers of less essential items need to think twice before copying the company’s move to increase prices.
The company had good enough reasons for the price hike.
P&G had good supporting reasons to hike its prices, and that shouldn’t trigger the opportunistic product manufacturers to increase prices for their products. Companies that wish to implement a similar change need to be more sensitive. They need to consider shopper’s well-being more carefully. Shoppers have been facing challenging times since the outbreak of the Covid-19 pandemic, and matters aren’t getting any easier with the rise of the variants. It seems unfair to increase prices for other commodities when shoppers’ wallets continue experiencing pressure pulling from all directions.
Over its many years of business operations, the company has focused on manufacturing Tampax tampons and Pampers diapers. It was recently that it felt the need to increase prices on products in its wide-ranging segments. The price changes touched on essential areas such as the feminine-care, baby-care, and adult-incontinence product categories.
According to analysts who noted the rise in the raw materials costs, the hike in prices has a basis. Pulp has been going on a notably high price tag.
Kimberly-Clark Corp made the initial move
Procter & Gamble Co makes its move after its fierce competitor Kimberly Clark Corp (NYSE:KMB). The rival focuses on the manufacture of leading brands such as the Scott toilet tissue and Huggies diapers. Kimberly-Clark Corp also gave the same reason as Procter & Gamble Co for its move to hike prices for utilitarian products.
Change begets change, and Procter & Gamble Co felt a change after the price hike. Its shares dropped by a small margin, and analysts express optimism that the company’s move won’t affect it badly.
The company deals in essential products that customers can’t go without. According to analysts, the other thing happens to be that the price hikes are reasonable and merited, so its move won’t backfire.