It’s Valentine’s Day and love is in the air. And no one loves it more than florists, chocolatiers and white-tablecloth restaurants who charge – and earn – a pretty penny for their romance-laced offerings. Although spending during the 2010 holiday season was slightly up over previous years, the global buzz is still all about cutting back and keeping up with money-saving habits. Well, not today. According to the National Retail Federation, Washington, D.C., the average person will shell out $116.21 on traditional Valentine’s Day merchandise this year, up 12.8 percent over last year’s $103. What’s more, consumers aren’t exhibiting their typical prudent tendencies, as many willingly fork over cash for overpriced items for their sweethearts. What is it about treating a loved one that incites the urge to splurge and ignore conventional money-saving wisdom? Is romance reason enough to throw cost-caution to the wind?
Traditional love offerings strangely seem always to cost more right around Valentine’s Day, according to Annie Mueller’s February 8 article, “The Premium You Pay On A Valentine Gift,” for Investopedia and published in the San Francisco Chronicle. A dozen roses at almost any other time of year can cost anywhere from $25 to $50, depending on the florist, the type of roses and the part of the country. But when Valentine’s Day rolls around, the cost for that same dozen roses goes up by an average of $14.
Candy, another Valentine staple, also has an inflated price tag around February 14. Of all the candy purchased, about 75 percent is some kind of chocolate. An increased demand dictates a higher price, so either retailers are forced to pay more to their suppliers or they simply see the opportunity for some good old-fashioned profit.
A nice dinner out holds the same potential for price increases. Consumers are expected to shell out around $3.4 billion dollars on dining out as a Valentine’s gift this year. A Valentine’s dinner out is likely to cost from $30 to $200 more than an average dinner out. Increased demand and eager consumers result in higher prices; the only possible restaurant options that may maintain their standard prices are ethnic choices, which won’t be as popular a choice as the traditional steak-lobster-and-chocolate soufflé Valentine’s meal.
My husband I will be avoiding the fray with take-out and a Blu-ray, but it’s impossible to deny that many couples still opt for a traditional celebration. So what is it about spoiling a loved one that makes paying a premium suddenly acceptable? Is the holiday reason enough to indulge our opulent impulses? Or is it as simple as not wanting to look cheap pulling out a coupon at Valentine’s Day dinner?