The price of just about everything in the U.S. has gone up significantly over the last 30 years or so. Back in the early 1990s, the average cost of a new home was about $123,000. Today, that same home would cost almost $300,000. Back then, the average cost of a new car sat just below $17,000. Today, that car would cost you more than $30,000. And when you went to the gas station back in the early 1990s, it only cost about $1.35 for a gallon of gas. Today, you’d pay more than two times that amount, as the average cost for a gallon of gas is currently hovering at around $3.
A Look at Food Inflation
Inflation applies to food prices too. When you stopped at a supermarket for a loaf of bread in the early 1990s, you would only have to spend about 70 cents. That seems like a bargain when you compare it to today’s price, which currently sits above $2.30. A pound of hamburger meat would run about 90 cents in 1990. That’s a far cry from the nearly $5 you can expect to pay today.
At the beginning of 1990, the cost for a bushel of corn was just $2.42. As of late August 2018, that price skyrocketed up to $3.47. An interesting note is that the break even for farmers is usually around $4.00.
Changing prices are the direct result of inflation which occurs yearly in United States and many other countries.
While the U.S. inflation rate is constantly in flux and tied to the strength of the economy, the current inflation rate typically sits at between 2 and 3 percent. That means that the price of, well, everything goes up about 2 to 3 percent per year, which has a direct result on how much things cost when you buy them. It’s easy to see the effect inflation has on the cost of things when you look at the difference between the cost of something today versus the cost of something 30 years ago. But even if you go back just a few years, you’ll be surprised by how much the cost of certain things has gone up in a relatively short amount of time.
The Benefit of Inflation
Inflation might seem like a bad thing when you only consider the fact that it makes everything you buy more expensive year in and year out. But inflation is actually the sign of a growing economy, and it usually means that people are getting paid more. Back in 1990, for example, the minimum wage in the U.S. was just $3.80. Today, the federal minimum wage is $7.25, but many states now have minimum wages that top $10. College graduates with work experience only made about $40,000 per year on average in 1990. Now, college graduates are making more than $50,000 on average as soon as they leave school.
With all this in mind, it would seem as though it would be difficult to find any company that has kept the products it sells the same price over the course of the last 30 years. But there are some exceptions to the rule, which is to say that there are some companies that have bucked the trend and managed to keep their prices low despite inflation.
Some of these companies have done it by relying on advancing technology. For example, if you purchased a Poqet PC back in 1990—which was the smallest computer in the world at the time—you paid about $2,000 for it. That same computer would cost more than $3,600 today when you take inflation into account. But if you were to buy a new PC today, it would actually only cost you about $730 on average. Likewise, a decent 35-inch color TV from a company like RCA would have cost you about $2,000 back in the early 1990s, which again would be well over $3,500 in 2018 after inflation. But today, the average cost of a smart TV is right around $1,200—and there’s a good chance that TV will be larger than 35 inches. Technology has helped some tech companies keep the prices for their products low.
How Drip-Well Fights Inflation
But it’s worth noting that there are also some companies that have continuously kept their prices low year after year despite inflation and without the help of technology. They’ve done it simply to keep costs down for their loyal customers. Dip-Well is one such company. Over the last 25 years, we could have increased the prices for many of their products, including everything from their Drip Well System to their Ace Roto-Mold Tanks. We could have blamed the price changes on their own rising costs and pointed at inflation when explaining why their customers needed to pay more for their products.
Drip-Well hasn’t taken that approach; we’ve only increased the prices of their products a few times in the last 25 years.
And that means that, while you’re going to have to pay more for a gallon of gas, a gallon of milk, and a bushel of corn in 2018 than you would have had to pay for the same items in 1990, you won’t have to pay much more for the excellent products we offer.
This is one of the many things that sets Drip-Well apart from its competition and keeps their customers coming back repeatedly. Call us at 800-676-DRIP today to hear how low the prices of our products really are or visit our website.