Abigail Sharpee
Econ-B4
Reuter
Halloween Candy
From Reese’s to lollipops, candy is one of the most popular purchases during the dark holiday of Hallows Eve. Many people tend to get caught up in the excitement of all the costumes and candy, that they then become overwhelmed with all the choices and end up buying more than they should--usually of candy. Therefore causing the demand for candy to drastically increase throughout the whole month of October. Consumers all around the country purchase loads of candy to dish out to all the trick-or-treaters on Halloween night. The majority of households are willing to pay up to a total average of about $2.27 billion dollars around the country on Halloween candy this year. Thats approximately $36 spent per American on the sole purchase of candy. Although, for the candy firms, Halloween is the most rewarding holiday yet. Sweets makers see the majority of their sales during the Halloween season, making it the largest confectionary holiday, according to the National Confectioners Association (NCA). However, with an increase in demand, comes a decrease in supply. The more the households buy and demand from the candy firms, the less candy they are capable of supplying. That is one of the many reasons people choose to buy their Halloween candy early in the month, they fear the shortage--a high demand, but low supply--of candy may occur.
The graph above resembles the amount of candy currently being purchased in preparation for the Halloween season. Out of all the supplies and must haves in order to participate in the festivities of Halloween, candy is ranked the second most bought. As foolish as it is for consumers to buy into the Halloween candy scandal, its a very smart economic decision for the candy firms to supply more candy than usual during October. By the firms increasing their supply, there may be less of a Halloween candy shortage; therefore boosting their revenue greatly. All around, Halloween candy has an impact on the economic system, in both a negative, yet mostly positive way. Without the assistance of Halloween, candy firms would not be nearly as successful as they have become throughout the years; however too many people tend to over spend when stocking up for Halloween candy, therefore hurting them economically.
Works Cited
Weissmann, Jordan. "The Halloween Economy: $2 Billion in Candy, $300 Million in Pet Costumes." The Atlantic. Atlantic Media Company, 28 Oct. 2011. Web. 19 Oct. 2014. <http://www.theatlantic.com/business/archive/2011/10/the-halloween-economy-2-billion-in-candy-300-million-in-pet-costumes/247531/>.
http://www.ibtimes.com/americans-will-spend-28-billion-halloween-candy-year-less-2012-fears-about-economy-inhibit-1445886
The holidays are always the best time for businesses, candy, toys and food in general just rake in the money. By the end of the season everything on the shelves have been wiped out and most stores always experience shortages. I never really included Halloween when I think of a holiday for some reason. Maybe because we don't get a break from school for it but it tends to bring in just as much money as the other holidays. Overall good point in showing how much the holidays are helping businesses these days.
ReplyDeleteHey Abby!
ReplyDeleteSeeing as Halloween is already next week, many of us are probably scrambling to come up with treats to hand out to the eager trick or treaters. Walking through Walmart, Pick N Save, or any other store, one can be sure to find a surplus of candy already prepackaged for Halloween. Even though there is an increase in demand, do you think that the candy suppliers prepare in advance for this and produce more candy ahead of time so that they don't fall behind in their sales leaving customers without products?
The demand for Halloween candy is extremely high right before the holiday, but immediately after, the demand drops down extremely low, causing a shortage and dropping the price. This means that the perfect time for candy lovers to buy candy because it will offer much more utility per dollar than before. This is a great plus for consumers, and there is no real downside for producers either.
ReplyDeleteI liked your choice of choosing something very economically timely, especially as my parents recently came home with a large plethora of candy, which may or may not make it to Halloween. However, the price of candy is kind of ridiculous as each household tries to buy a small hoard capable of being given to each kid in the neighborhood. Is it really worth buying this over surplus just for the spirit of things, or would it be better if households just for their own personal desires bought themselves candy. In the end after the long day of trick or treating the poor parents and their costumed children end up throwing away their undesirables. So therefore would it just be more economical to not waste candy and buy your own, or is all the worth in the experience?
ReplyDeleteHi Abby!
ReplyDeleteI think this was a great topic to write about in that Halloween is just around the corner. I think it’s not much of a stretch to realize that demand for candy goes up during October, but I think it would’ve been interesting to see who is buying all that candy? Parents of young children? Parents of teenagers? Or older adults?
I can’t believe that Halloween is in exactly one week from today. This is an awesome post explaining why candy price are going to more expensive during this holiday season. Like you said in the post everyone is going to want the candy causing a high demand. This demand will then cause a shortage driving the retail price for candy up.
ReplyDeleteThis was a really good topic. I love candy myself so trick or treating was always an awesome time of year for me. I think my parents always did a good job of not buying too much candy as we would usually run out before the night was done. However, I didn't know Americans spent over a couple billion on candy each October. What do you think would happen if the candy companies were to really bump up prices in October, in other words how inelastic do you think candy is during Halloween.
ReplyDeleteAbby, I absolutely loved your blog this week. It was a really great idea considering that Halloween is right around the corner. In my opinion, although I understand the attraction to all the candy, I think it's absolutely crazy that the average american spends 36 dollars on Halloween candy alone. Hey, maybe that's another reason why America is Obese (connection to current issues). Like you said, there is an increase in demand which definatly pays off for all the chocolate and candy companies. Great article!
ReplyDeleteThis post was super interesting, and something that I normally don't think of. I don't think people realize how expensive candy actually is. One large bag of candy can be upwards from $10 which is crazy, especially if you have to supply for the huge number of trick or treaters that come through a neighboorhood. I think that candy producers should up their prices during the Halloween season because consumers will still pay for it. The fact that an average household spend $36 dollars on candy for this month is crazy, and I am sure that many of these families would pay even more if the price were to rise.
ReplyDeleteI totally agree that candy companies make a lot more money during the month of October so it’s necessary and smart of them to supply more at this time. If they sell all of their product great, but if not they’re left with a surplus of candy which could be bad since most things tend to be Halloween themed during this month and once Halloween is over, people won’t want to buy the Halloween candy meaning it will have to be sold at a discounted price causing the company to possibly lose money. Also I think you’re right that the consumers around the country buy too much candy, causing a surplus of unwanted candy and the loss of money. Overall I think Halloween is a great time for candy companies because they can boost their profit, as long as they sell enough product.
ReplyDeleteHalloween is truly around the corner! Not surprisingly, its easy to see how supply and demand goes up especially at this time of the year. What I wonder though is, candy is also sold at other major holidays during the year. Easter sees a rise in the sales of chocolates, christmas with similar candy to halloween etc. But the question I have is, shouldn’t all of these confectionary companies also hope to make a profit during these times of the year also instead of being dependent on one holiday? I’m also surprised by the actual numbers surrounding Halloween, “Americans spend approximately $36 on candy”, $36 dollars, its amazing how that sounds like a lot but typically after 1-2 hours of trick or treating, most households are out of candy! All-in all, fantastic information but this was really a treat to read!
ReplyDeleteI like how you added another perspective on Halloween that I didn’t see before, that being it’s own economy. I think that the costumes are also thing that are out year round, but there is a special rise in supply during the halloween season. There is always a costume that a kid has to have which then forces parents to buy it from that store at that price. Thank you for pointing out the waste of money that all the candy is. To pay $36 dollars for something that you can’t even enjoy that will be the reason that streets are littered with candy wrappers for the next week.
ReplyDeleteIt's weird that people buy more costumes than candy during this time of year. Would think that people would want the sweets more than getting dressed up to get them but, who cares. Although I think most of the candy is god awful, its fun to get together with some friends and have a hoot of time (owl joke). I'm thinking it would be a good business idea to get a tractor and a huge trailer and drive kids around for the low price of one dollar.
ReplyDeleteThe fact that the average family spends $36 on candy every Halloween is crazy! But then again when going to Walmart the big bags of candy are pretty expensive. You mentioned that there is a small supply of Halloween candy because the demand is so high, but I think companies actually prepare for the season of Halloween candy and produce a lot more candy around August and September to be sold in October. That’s what I would do, at least. Overall I think Halloween is a great time for these candy companies, along with the Christmas holidays as well. The $36 per family still amazes me though.
ReplyDeleteIt's not too big of a surprise that candy is sold in larger quantities around Halloween, seeing as how it is seen as a necessity for families to provide candy for trick or treaters. It's also interesting to know that Americans spend about a couple billion dollars on candy each year. What I would like to know is how much the price varies between the holidays, and every other day.
ReplyDeleteIt's funny to watch all the candy prices drop after Halloween. I like the point that Evan brings up though. How much money is too much to pay for Halloween candy? Can candy companies bump up the price even more during Halloween or would nobody buy the candy then?
ReplyDeleteGreat choice of topic since Halloween is just around the corner! I find it interesting that candy is only ranked second in the chart you referenced, and even though it is almost tied with costumes, I still would have expected more candy to be bought than costumes. Candy companies clearly have a prime selling time during October and could very well, and probably do, make the majority of their revenue during this time of the year. I am surprised these companies do not take even more advantage of the rising demand than they already do.
ReplyDeleteDuring Halloween is really the only time that my family evers goes out to buy candy, and we buy a lot of it. So it makes sense that producers of sweets increase the prices on candy during the holiday season. I find it interesting though that candy companies don’t increase their supply as their prices increase, but I guess it’s so they can increase their prices on their candy to as much as they want too. It’s interesting to see how people during the Halloween season still buy candy even though it’s at a higher price.
ReplyDeleteWith Halloween a week away, many families are scrambling to get treats, healthy or unhealthy, for trick or treaters or just for themselves. If you go to almost store by it Target, Pick N Save or even Dollar Tree, you’ll find candy in at least one section of the store. Most stores stock up on candy, toys, and other gifts around the end of September. And you would like with all the different types of treats they wouldn’t run out. Wrong! If a store does sell out during the holidays, then they most certainly well with their after holidays blow out sales. Just thinking about how much money suppliers get during the holidays makes me sick.
ReplyDeleteI really liked your topic since Halloween is just around the corne! So many people go out and buy candy right before Halloween when it is the most expensive so they all have candy to hand out for Halloween which is only a week away! So many people don’t think to buy it in advanced when it is cheaper so they end up paying all this money on candy. That is crazy that the majority of households are willing to pay up to a total average of about $2.27 billion dollars around the country on Halloween candy this year which is about $36 spent per American. It is crazy to see how much candy is bought during this time of year.
ReplyDeleteI liked your seasonal connection of economics to Halloween because I never thought of the fact that that much more candy had to be gotten around Halloween time, but if you think of it a shortage would defiantly occur if manufacturers didn't keep up and produce to the consumer demand. It also makes me wonder what other times of year producers need to produce more or less of something due to a huge spike in demand, like trees at Christmas or flowers on valentines day.
ReplyDeleteAnother interesting aspect is for those household who shun the purchasing of Halloween candy entirely. The ones who lock their doors and close the blinds to stop little children from peeking around to see if anyone's home as they ring the doorbell over and over and over and over again. For the house it may be an economical benefit, they didn't put the money into buying candy and can instead use it to buy a new movie and a popcorn for themselves to enjoy during trick or treat, however the negative externalities of the constant noise and occasional egg splatter significantly outweigh the financial costs.
ReplyDeleteFirst of all you can never buy too much candy. Spending $20-$30 on cany once a year isn't bad especially when you're handing out to all the little kids. If you bought a bunch of candy and eat it all yourself then its a problem
ReplyDeleteAbby, I really liked your post. It's an interesting topic to consider. We are spending nearly as much money on candy as costumes. Candy producers can set higher prices on Halloween specific candy and all candy during the month of October because people are willing to pay more. If the price got too high, consumers would simply buy candy earlier, and the amount demanded in October would decrease.
ReplyDelete