In its local sales flyers, Seats and Sofas presents pieces of furniture with substantial markdowns. Deceptive pricing is not only bad for consumers, but it is also unfair to businesses that do play by the rules.” What was the problem? If the markdown turns out to be false, then consumers have been misled. When spotting a substantial markdown, consumers think they have found a great bargain. Consumers must be able to determine prices themselves by looking at the price tag.Ĭateautje Hijmans van den Bergh, Member of the Board of ACM, adds: “Price is one of the most important factors on which consumers base their purchasing decisions. The only way for consumers to find out what each individual piece of furniture on display in a store would exactly cost was by asking the in-store sales staff. Furthermore, furniture pieces in the stores did not have any price tags. In the retailer’s sales flyers and stores, the use of ‘was/now-prices’ (or phrases such as ‘formerly sold at’) suggested price reductions, which, in fact, did not exist. But the problem is this restart is actually difficult because there's global logistic problems.The Netherlands Authority for Consumers and Markets (ACM) has imposed fines totaling EUR 350,000 on furniture retailer Seats and Sofas for misleading consumers with non-existent deals. 'We wish there is a button or a lever so when the economy shuts down, we can just push the button and the economy returns. She expects prices for many products to continue to increase because of supply chain challenges.

'This is something, as economists, we really fear,' said Amy Peng, associate professor at Ryerson University's department of economics in Toronto, about rising inflation. Some large corporations are also hiking prices because of rising expenses, such as soft drinks from Coca-Cola and Procter & Gamble's diapers and feminine-care products. Food and home prices have increased, while clothing and recreation costs have fallen. Inflation has remained close to the Bank of Canada's target of two per cent, although some experts anticipate it could temporarily rise to three per cent in the spring because of rising commodity and energy prices, such as lumber, metals and oil. Meanwhile, with restrictions on travel and dining out, consumer spending habits have shifted from those items to products used at home.Įvents like the Suez Canal blockage and the Texas power outage have only magnified the global supply chain problem.ĭuration 1:12 Louis Stack with Fitter International explains the supply and demand issues during the pandemic. He describes the supply chain in a state of chaos as ships, railways and the transportation industry as a whole struggle to move as much cargo as is required.Īt the same time, many factories that reduced production at the outset of the pandemic amid economic uncertainty are now challenged to meet demand because of COVID-19 impacts on their workforce, among other difficulties. 'I can tell this is going to be the worst thing you've ever seen in the history of our company.' 'I kind of want to wrangle them all together and do a year-end price increase that represents our new reality which will be a significant 20 to 25 per cent price increase in our products,' he said. The company put out a new catalogue in recent weeks and already those prices should be adjusted, said Stack, but it's a challenge to keep prices in line as costs are continually climbing. The rising expenses have followed a hockey stick-type curve, making it difficult to handle, said Louis Stack, the founder of Fitter International, which makes and sells fitness equipment. WATCH | All the reasons behind the sky-high price of foam:ĭuration 1:46 Colin Crump with Sleep Boutique explains why it's so tough and expensive to buy foam right now. we have more work than we ever had, but we don't have the materials to do it,' Crump said. 'With some of our suppliers, it's like pulling teeth to actually get product. Sales at his business are up about 10 per cent over the last year, but up until the last few weeks, he wasn't able to increase production without enough of the raw materials. 'My biggest concern is, how long can I maintain my price point before I have to increase that to my customers and if they do increase, does that potentially price me out of the market?' said Crump. Price tags have already increased about 10 per cent at his store over the last six months and could climb further. Meanwhile, demand started to rise, as people stuck at home, spent money there. In the case of mattress foam, for example, when COVID-19 hit last year, Crump says manufacturers cut forecasts for how much would be needed. There, sales are up but so are the costs for raw materials, and it's been difficult to source them, says president Colin Crump. A worker assembles a mattress at Sleep Boutique in Calgary.

Price tags for furniture