Behind the recent surge in inflation hides the daily lives of millions of households in Quebec. There are also some products that stand out, either because their prices have gone into orbit, or because they stubbornly resist the trend. Third text in our series: products and services whose prices defy the upward trend.
Year after year, Center Hi-Fi consumers get more for their money, says Marc Bélanger, Montreal operations manager.
“Take the example of a man who just bought me a television. Ten years ago, he paid $ 1,600 for a 49-inch television. Today he still wanted a TV for around $ 1,600, but it’s a 65-inch. Today’s 49-inch sells for $ 600. He therefore paid the same price as 10 years ago, but for a bigger television set and better technology, ”explains Mr. Bélanger.
Due to the constant advent of new technologies, audiovisual products would generally escape inflation, he said. “Technologies, when they come out, are expensive because they are new. Then they sell in larger quantities and become cheaper to produce. I have very similar product categories appearing and [leur] compete, so it becomes more affordable in-store, ”adds Mr. Bélanger.
In fact, according to Statistics Canada’s consumer price index, the price of video equipment has been falling for at least ten years.
Another product on the decline, this time dramatically, is recreational cannabis. It has lost nearly 23% of its value in three years.
This situation is mainly due to an increase in demand, says Sid Hathiramani, partner in risk management consulting for the firm Deloitte.
“In 2018, there were only a handful of companies capable of supplying the volume necessary to meet the needs of provinces and distributors. Over the past three years, many new companies have entered the market. This competition drives prices down, ”underlines Mr. Hathiramani.
In addition, producers have also lowered their prices to reach those of the black market, which would still attract nearly 50% of cannabis consumers. But the prices are expected to recover eventually, believes the analyst, because they do not allow a large number of producers to have a profitable business.
Several other products have suffered slight declines over the past two years, including traveler accommodation, shoes, clothing, personal soap, oral hygiene products and public transportation.
On the ground, however, the reality is not always in line with the figures. Vice-president of Tony Pappas boutiques, Manon Gauthier, says the boots and shoes she sells have instead seen increases from $ 5 to $ 20 in 2021. She attributes the increase mainly to the price of container transport and to product scarcity, which stems from disruptions in the production and supply chain in Asia.
Laboratoires Druide, which makes artisanal soaps, have for their part managed to keep their prices at the same level for two years, says the commercial director of the Quebec family business, Catherine Pilon. Manufacturing costs, particularly related to transport and labor, have increased, but so has demand.
“We had a 25 to 30% growth in production. We are therefore able to better negotiate the price of our raw materials. In the end, it is equalized ”, explains Mme Pestle. This consistency of their prices also allows them to keep their customers, who could choose the deals of the big chains like Dove and Ivory.
Wireless takes with one hand what it gives back with the other
The cost of wireless plans has fallen in Canada by 17% from 2019 to 2021. Why are so many consumers still complaining about their cell phone bills?
Perhaps one of the reasons lies with the telephone devices themselves, the prices of which have increased. For example, the iPhone X launched in 2018 was the first in the range to cross the $ 1,000 mark in the entry-level version. The iPhone 13, the version launched earlier this fall, starts at $ 1,100.
These larger and more expensive devices as well as the entry into service of new digital fifth generation (5G) networks are probably prompting buyers to opt for more generous and necessarily more expensive packages as well, since all this leads them to consume more electricity. mobile data every month. This skews the picture and creates the impression that wireless ultimately costs more, concludes Nadir Marcos Mechaiekh Simon, CEO of price comparison site PlanHub.
With Alain McKenna