With price hikes just around the corner, is now the best time to buy?

Key insights

• New research from PriceSpy reveals the indexed price between now and the start of the year is falling;

• But with reported price hikes* just around the corner, when is the ideal time for consumers to buy?

• PriceSpy say it may just be now, but not without conducting fundamental pricing research first, as even though price points across many categories appear to have dropped compared to the start of the year, there’s some red herring price hikes to watch out for, too.

After a difficult and challenging year that saw prices escalate across multiple shopping categories, new pricing research from the fully impartial price and product comparison site, PriceSpy, suggests shoppers may be in for some light relief when it comes to how much they pay for consumer goods.

According to PriceSpy’s Price Index**, the indexed price across the most-popular products and shopping categories listed on its website has been steadily falling since the start of the year, with the indexed price currently dropping to -1.8 per cent. 

PriceSpy’s Price Index data – 2021 vs 2020

Source: PriceSpy 

 

In comparison to last year, the indexed price across the same period of time rose to +4.7 per cent, a difference of +6.5 per cent.  And when New Zealand was placed into its first national lockdown, the price index skyrocketed, reaching almost +6 per cent.

Liisa Matinvesi-Bassett, New Zealand country manager for PriceSpy, says: “It’s great to see price points across consumer goods are starting ease up, as this time last year shoppers were faced with paying significantly higher than normal prices.”

“In fact, additional pricing research*** carried out over some of the most-popular shopping categories on our website mirrored the findings of our Price Index data, showing price points across many goods dropped considerably compared to the start of the year.

“For example, the Sony Bravia KE-75X9000H (KD-75X9000H) TV currently costs -$803 less compared to the start of the year.  Similarly, a pair of Beats by Dr. Dre Studio 3 Wireless headphones costs +$157 less now compared to earlier this year. And a Logitech Brio webcam is -$71 cheaper now compared to if it was purchased on 15 January 2021.”

 

The additional PriceSpy research also found:

• 70 per cent of the top ten most-popular chest freezers were cheaper to buy now compared to the start of the year

• 70 per cent of the top ten most-popular webcams were cheaper to buy now compared to the start of the year

• 70 per cent of the most-popular headphones were cheaper to buy now compared to the start of the year

• 60 per cent of the top ten most-popular TVs were cheaper to buy now compared to the start of the year

• 60 per cent of the top ten most-popular hair trimmers were cheaper to buy now compared to the start of the year

 

So, when should consumers buy? 

With talks of potential price hikes just around the corner*, is now the best time for shoppers to splash out or should they wait it out?

Liisa continues:  “With further price hikes reportedly taking place later this year and the continued fall out of Covid-19 affecting global manufacturing, distribution channels and supply chains, it’s difficult to say how long the current prices will last, as there are so many variables at play.

“So, based on the current Price Index data and latest pricing research, now might be a great time for consumers to buy, especially if they are in need of bigger ticket items such as chest freezers and TVs, as many of these items were found to cost less now compared to the start of the year.

“But before people rush out the door to the shops, we strongly encourage shoppers to carry out invaluable price research before they buy, as not everything is necessarily cheaper.

“For example, the Samsung QLED QA65Q80T TV currently costs $500 more today compared to the start of the year. Similarly, this Fisher & Paykel chest freezer costs $97 more today compared to how much it cost on 15 January.

“Conducting price research is quick, easy and free - and this fundamental buying step can help save consumers hundreds, if not thousands of dollars in the long run.”

*Source: Retail NZ’s Retail Radar

** PriceSpy’s Price Index is a daily updated chain index that tracks price changes across all categories, brands and markets over time. Products are weighted by popularity, determined by the number of clicks-outs received and the number of stores offering the product. The index works much like a stock index, where daily price changes are used to calculate the accumulated index, and where company size corresponds to product popularity. Old products will gracefully disappear and new products enter the index. The index shows the relative price change of already existing products from the day before.

***Additional PriceSpy price research can be found here. 

Price drop examples: May vs January 2021

Source: PriceSpy

 

Price hike examples: May vs January 2021

Source: PriceSpy

 

 

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