By Megan Kading
The holiday season is most commonly seen as the money-making time for businesses, but many people don’t realize just how much money Halloween rakes in as well. According to a survey conducted by CBS News, the average American is expected to invest around $250 this Halloween. While this may seem ridiculous to some, it cannot be forgotten that this takes into account costumes, candy, decorations, pumpkins, and other items that one would not usually purchase during any other time of the year (minus the candy). This demand determinant, consumer taste, can ultimately affect the price of the products sold or if they are even being sold at all. It isn’t too often that you’d walk through a Wal-Mart in the middle of June looking for a costume, or go pumpkin picking with your family during February. Markets also take into account the fact that consumers are willing to pay a higher price during this time of year because of the popularity associated with it. If a customer is looking for a specific item, they will pay a higher price. Today, being November 1st, the prices of candy will plummet as a result of popularity diminishing because of Halloween ending. The inelasticity of the price of candy from the day before disappears the next day because sudden interest and need for the product is gone. Different markets are also making more than others; in the oligopoly market, candy companies such as Mars, Nestle, and Hershey are making more money than any other time of year. Some economists have argued that the selling of costumes and decorations is almost a bad idea. They say this because these resources could have been used to make something more useful, and instead is is being wasted on consumers who use the product on one day and one day only. Overall, the economy during Halloween positively affects many producers, including small shop owners and farmers alike. 
Sources:
None. "How Much Is Halloween Contributing to Our Economy?" Full Fact. N.p., n.d. Web. 31 Oct. 2016.
"Halloween Is Becoming a Bigger Economic Treat." CBSNews. CBS Interactive, n.d. Web. 31 Oct. 2016.
Truly every holiday rakes in a lot of money just for the anticipation of a single day, but Halloween is particularly legendary for doing so. Especially in the United States, people spend so much money on multiple items all for the use of October 31st. Starting on the first of October, the demand for candy, costumes and pumpkins exponentially grows and remains high throughout the month. Producers and suppliers use this craze to their advantage, as stated in the blog post. This mania encompasses the concept of the law of supply. As the prices increase, quantity demanded is increased as well. Halloween costume producers intentionally make the price of costumes higher than they need to, but they use this strategy because they know consumers will buy the costumes. Depending on the income of the consumers, purchasing Halloween costumes becomes somewhat inelastic. Though nobody needs Halloween costumes, some consumers will buy a certain costume(s) no matter how high the price is just because they want that costume. It is perplexing that the average American is expected to pay around $250 for Halloween, but that goes to prove how high the demand is for goods related to this holiday.
ReplyDeleteI thought that it was very surprising reading that Halloween is mainly the most spend Halloween. But I am going to disagree with this argument. I believe that Christmas is the most spend holiday because of all the presents that are being bought and all the knock off prices that the company is selling. Although costumes are expensive and all the fun parties that may be going on that you need to buy for its just under $250, I think any parent on Christmas would love do only spend that much.
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DeleteI do believe that Halloween makes a lot of money. I work at Walmart, and we make intense profits on Halloween candy. We profit on those bags that cost $9.97, because they only cost the store about $3. But I don't know that Christmas doesn't make more.
ReplyDeleteI am really surprised how much money Halloween makes each year. It is interesting how consumers are willing to pay more money for candy during the Halloween season. I also found it weird how on November 1st the price of candy and all of the other Halloween needs will drop. I never really thought about how many people were benefited by Halloween: farmers, consumers and producers. However I wonder if the production will start to decrease because many people are now going to goodwill to find Halloween costumes or pinterest to diy one.
ReplyDeleteI do believe that Halloween rakes in a lot of money because of the limited time offers. I know how much people spend on Halloween because I am one of those houses that has crazy decorations, and sound affects. However, I don't believe that Halloween is the most expensive time of the year. I think Christmas has lots more of idem that people spend money on. For example Christmas trees, lights, decorations, the electric bill, and presents. I feel like all these cost that people pay for at Christmas out way all the cost spend on Halloween.
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