Monday, January 3, 2011
Why I don't own a hamburger store
I'll bet that some of you who are hot and heavy into the whole fabric/blogland/quilting world have heard that the cost of cotton is going up very, very soon.
As in, prices increased as of January 1st, 2011.
This is in fact true and I wanted to weigh in with my two cents.
Deb over at Whipstitch wrote an excellent post about the reality of the cost increase, as it relates to the failed cotton crop in China.
I cannot recommend strongly enough that you read her article, as I am (quote/unquote) "in the business" and she absolutely taught me a thing or two.
I wanted to add some more info that my dear sweet Moda Rep shared with me.
I will give you the crib notes version.
In 1990 the cost of a loaf of bread was 70 cents.
Today the average cost of a loaf of bread is $2.69.
That's a price increase of 284%.
In 1990 the cost of a postage stamp was 25 cents.
Today the cost is 44 cents.
That's a cost increase of 76%.
In 1990 the average cost of a pound of hamburger was 89 cents.
Today the cost is $3.29.
That's a cost increase of 270%.
In 1990 the cost of a an ounce of gold was $398.00.
Today the cost is $1,338.00.
That's a cost increase of 236%.
In 1990 the average cost of a gallon of gasoline was $1.42.
Today the cost is $2.97.
That's a cost increase of 109%.
What does all this tell me?
(Besides that I should have invested in gold?)
Prices go up.
Prices rarely, if ever, go down.
And unfortunately this is one of the years that fabric is going to become more expensive... for the manufacturers, for me and for my customers.
Nobody is happy about that, believe me.
But here's something for you to ponder:
In 1990 the cost of one yard of premium 45" wide quilting weight cotton was $6.99.
Today the cost is $9.29.
That's a cost increase of 33%.
The moral of the story: It could always be worse.
(Thank GOD I didn't start a hamburger store!)
Posted by Rhea Butler at 5:23 PM