Will supply chain issues hit your wallet during holiday shopping?
There’s a reason consumers are advised to shop early for the holidays this year. Supply chain issues put many retailers at risk of running out of stock. If you want to make sure that you will be able to snag all the items on the wish lists of your loved ones, you will want to give yourself a head start.
But supply chain issues don’t just threaten product availability. They also make some products more expensive. And this is something you will need to prepare for.
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Why the backlog?
A number of key overseas supply chains have seen their share of disruption in recent months. Flooding problems in Asia over the summer delayed many shipments, while many factories had to temporarily close due to COVID-19 outbreaks.
In addition, the United States is seeing its distribution network hammered. Some of the country’s largest ports have increased their opening hours to unload stranded container ships faster. Perhaps an even bigger problem is the shortage of truck drivers to deliver goods to the United States.
Due to these issues, many retailers are spending more money to produce and distribute merchandise in time for the holiday season. And some, in turn, pass these higher costs on to consumers. It’s for this reason that a lot of your holiday shopping could cost more this year than you might imagine, even if you try to take advantage of big shopping days like Black Friday to save money.
How to deal with rising prices when there is a shortage of supply
The last thing you want to do is end the next holiday season with a bunch of debt. To avoid this, you might want to consider finding a side job if your regular salary can’t keep up with the rising cost of vacation items.
Many businesses need extra help during the holidays, especially this year when labor shortages have abounded. It might be pretty easy to take shifts at a local store to fill your bank account and easily cover your vacation expenses.
At the same time, be strategic about the credit cards you use for your holiday shopping. If you plan to spend a lot of money in a short period of time, it might be beneficial to apply for a new credit card that offers a signup bonus. This extra money could help pay for some of your gifts and other expenses.
Suppose you qualify for an offer that gives you $ 200 cash back for spending $ 1,000 within three months of opening a given card. If you plan to spend $ 1,000 on vacation, you can also sign up. That way, your $ 1,000 purchases will actually only cost you $ 800.
Unfortunately, supply chain issues could make holiday shopping less enjoyable and more difficult this year. Be prepared to pay for certain purchases, but also, advance on those purchases. The good news is that many retailers have Black Friday-style deals before the main event. Therefore, shopping early doesn’t necessarily mean losing discounts.