Ah, Unemployment, the new American Pandemic, a terrible affliction that has reached my doorstep in the form of losing my job in the down economy. Fortunately I had a month and half of lead time before the closure and put it to work via stocking up on goods that would have to be purchased with expensive but cheap money over the upcoming months whilst the job search, or new venture is launched.
Expensive but cheap money, one asks, isn't that an oxymoron?
Allow me to explain, right now after years of working the household is well stocked with the items that make a home a home, cleaning supplies, laundry detergent, soap, toilet paper etc. as time rolls forward those items will be depleted through normal usage, to purchase replacement items two months from now, with dwindling cash reserves is quite expensive when there is no other income coming into the home. But the money is "cheap" as it was created out of nothing at all but a vague promise of "full faith and credit".
By purchasing those household items over the past two years, in bulk, the Alpha Strategy helped me to avoid the "Expensive but Cheap" conundrum, as well as sidestepping the 10% inflation on those items that has bumped prices upwards.
Reviewing my notes from 2008, a jumbo box of Surf detergent at Sam's Club in 2008 cost 14.54, today they cost over 17.00, so every box of Surf purchased in 2008 has made around 3 dollars per box..not to bad a ROI.
There is one item that has retreated in price due to Govt Subsidies, Light Bulbs, in 2009 those mercury filled, energy efficient bulbs were 9 dollars for a pack of 8, now they are 3 dollars for a pack of 8 due to Subsidies from the Govt.
Win some, lose some.
2 comments:
About 18 months ago the Detroit Area Anarchy Group read Pugsley's Alpha Strategy. We generally agree with the theory, but I did some price checking and a lot of things that can be stored have not gone up in price since the books publication.
Here's what I came up with. The spreadsheet doesn't cut and paste so hopefully this list makes sense.
I list the item, the 1980 price, the CPI adjusted price for Feb 2009 (a multiplier of 2.58), and then the Feb 2, 2009 price listed in that week's advertisements.
1980 Price
CPI Adjust
Current Price per 2/2/9 newspaper ads
Anti-freeze 1 gal
3.37
8.69
13.99 Autozone.com
Light bulbs - GE
0.54
1.39
1.00 4 pack @ Ace & ACO Hardware
Trash bags - Glad 8 hvywght
1.43
3.69
2.00 10 ct Spartan brand 30 gal
Shampoo - 16oz baby
2.19
5.65
3.49 13 oz Loreal @ Meijer
4.00 12.6 oz Pantene @ Busch's
Toothpaste - 7 oz Crest
1.09
2.81
2.50 6oz Colgate @ Kroger
2.00 6.4 oz Colgate @ Busch's
Hand soap - Camay bath size
0.37
0.95
3.97 8 pack Irish Spring @ Meijer
3.29 3 pack Irish Spring @ Spartan
Toothbrush - Oral B
0.61
1.57
no advertised prices
Mouthwash 18oz Scope
1.26
3.25
6.00 1.5 litre (50 oz) Listerine @ Walmart
2.97 1.5 litre (50 oz) Meijer brand
Vaseline - 15 oz
1.22
3.15
no advertised prices
Kleenex 200ct
0.59
1.52
1.50 Kleenex 280 ct @ Kmart
1.00 100 ct Meijer brand (91¢ if buy 11)
Alum Foil - 200sq ft Reynolds
2.43
6.27
2.99 75 sq ft Spartan brand @ Busch's
Tampax - 40 ct
1.7
4.39
no advertised prices
Ignoring the 3 items I wasn't able to get a current price, only 2 items were more expensive 19 years later.
Thanks for the comment.
What I've done is dispense with such things as Kleenex and Tin Foil and simply use handkerchefs and no tin foil.
Where Pugsley was correct in his theory has been Motor Oil which has increased in price over a 1.20 per quart, Toilet Paper, and several other household items unless generics are purchased.
In food he was also quite correct, even with the deflating effect of Globalisation, prices for commodities such as sugar and coffee have only increased.
A 25 pd bag of sugar has increased in price from 17.00 to 22.00 (rounded off) at the local Sam's club
Coffee has increased in price from 4.00 to 7.00 per tin for the cheap stuff, the premium coffees have increased even more in price.
Pugsley, sadly enough, was a fan of Tea.
His advice on purchasing shampoo concentrate from a beauty supply store was also spot on, a gallon of concentrate makes something like 10 bottles of regular shampoo for a fraction of the price.
Thanks for your work though, I suspect Pugsley's Era had a great deal to do with the items he selected.
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