Serving as president and CEO, Larry Gaynor has led TNG Worldwide for more than 35 years, offering services related to the distribution and manufacturing of innovative beauty products. Maintaining a blog that addresses wide-ranging professional issues, Larry Gaynor wrote in late 2021 on the gathering forces of inflation.
Describing the situation as “a perfect storm,” he notes that a combination of lingering pandemic protocol, political headwinds, and inflation above the 5 percent threshold have combined to create a more challenging consumer landscape. Unfortunately, consumers are often the last to know about behind-the-scenes price increases, since perceived scarcity can lead to consumer hoarding that further compounds the issue.
As a first-hand example, Mr. Gaynor describes his company’s top-selling, five-inch, 500-count foil sheet box, which has long been sold on Amazon for $8.39. Given a 15-year high in aluminum prices, coupled with tariffs of 25 percent and a surge in shipping container rates, the new single box selling price is $13.99 per box. However, this target price is too high for bulk buyers, so his company is maintaining a razor thin margin with a $9.99-a-box price on 12-count cases for as long as it can.
With real inflation for his company at more than 5 percent and consumers still experiencing less than 5 percent cost increases, it is unclear how long this situation can last.
