Wednesday, May 25, 2011

PENNIES MAKE DOLLARS: Dollars Make Millionaires

POOR RICHARD'S ALMANAC
On April the third we quoted Ben Franklin.  He said "A Penny Saved Is A Penny Earned"!  Today,  I say to you that "Pennies make dollars and dollars make millionaires"!  Ben and I are both correct, of course.

No!  I am not a millionaire, but I do save pennies. 

Now, my question to you is "Did you heed my advice and save a few pennies?"  If you didn't, shame on you.

IN THAT APRIL 3RD ISSUE I MENTIONED THAT JULIE BOUGHT FOUR, TWO POUND CANS OF COFFEE FOR $4.99, THAT'S $2.50 A POUND.  She was just adding to the six cans she had bought earlier for even less. 

Coffee prices have out paced gasoline prices in the last year.  A one pound can of coffee that sold for $5.10 in April is up 40% from the $3.64 of a year ago.  A gallon of regular gasoline that averaged $3.83 on May 24th is up 37% from a year ago.

While fuel prices are expected to moderate, in fact are doing so now, coffee prices are expected to rise for some time.
J. M. Smuckers Outlet Store in Orville, Ohio


Smuckers, the "with a name like Smucker's, it's gotta be good" jelly people, own many well known food brands, including Folgers and Dunkin' Donuts coffee.  They said  yesterday that they are raising the prices of their coffee products by 11%.  That is their fourth increase on coffee in a year.  Other brands are doing the same.

Over all, coffee crops increased 8% last year with strong supplies from Ethiopi, the Ivory Coast and other countries.  There were weather problems in Indonesia and elsewhere but their is no shortage of coffee.

WHY THE PRICE INCREASE WHEN THERE IS A GOOD SUPPLY OF THE PRODUCT?  In addition to fuel price costs, China, with their strong economic growth and upwards mobile work force, is increasing demands on the world's coffee supply.  BEST WATCH CHINA!  They are eating our lunch in a lot of areas.

IN GENERAL, DUE TO SOARING OIL AND GRAIN PRICES, GLOBAL FOOD COSTS ARE AT THEIR HIGEST IN 20 YEARS!


HEY, BROTHER!  CAN YOU SPARE A DIME?  That was a familiar cry during the Great Depression.  Well, it will take more than a dime to get you a cup of Starbucks today.  Starbucks said yesterday that they were raising their one pound coffee prices from $9.95 - $13.95 to $11.95 to $14.95.

WHAT'S A PERSON TO DO?

Reread my last blog, where we bought Campbell's Pork and Beans for half price.  Yes, that was a price loser with the entent of getting you into the store to buy something else.  What did I buy when I was in the store?  Three, 24 can cases of Campbell's Pork and Beans, for only $23 I must add. Watch, you'll see a "come on in" price on coffee.  Stock up.  You will use it, why pay more?
JULIE, FLYING HIGH IN A HELICOPTER OVER MAUI
To live this good life, we must watch our pennies

Oh, yes!  I should also say to be thankful, VERY THANKFUL, if you are blessed with a thrifty spouse like my Julie.

BTW, DO I APPEAR TO BE HUNG UP ON THIS SUBJECT?  It's worse than you think!  I am into my 3rd book of THE HUNGER GAMES by Suzanne Collins.  Yes, on my Kindle, of course.  Thanks family, thanks Mark!  

Take care and God bless you and yours. 

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