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Historic inflation increase will further impact supply costs

It’s the highest inflation increase in 30 years.
Posted at 7:20 AM, Nov 11, 2021
and last updated 2021-11-11 08:20:33-05

GREEN BAY, Wis. (NBC 26) — Whether it’s a pair of skis or an order of jackets, it’s going to cost more for David Zeller to keep his shelves stocked.

"In the future, talking to my kayak manufacturers, there is going to be a price hike of... like 10 percent," the co-owner of Zeller's Ski & Sports said.


The latest numbers from the Labor Department show consumer prices for goods and services climbed 6.2 percent from a year ago. It's the biggest jump in inflation in over 30 years.

Zeller says he isn’t taking the brunt of inflation quite yet, because he orders his supplies nearly a year ahead of each season.

"Going forward with the ski equipment, I know talking to manufacturers — because we’re getting into our buying cycle for next year — that prices will be definitely going up, the cost of materials," he said.

And shipping costs are already impacting the Green Bay store. Zeller says a container used to cost $3,000. Now, he's paying $25,000.

"Getting freight here, that’s even impacting the economic bottom line too," he said. "Because that’s taking a bite into my margins as well."

With some products, higher supply costs mean higher prices for customers.

"Kayaking, cross-country skiing, downhill skiing are just the perfect thing to get away," Zeller said. "So people seem to be accepting the terms of 'it’s gonna cost me more to do this.'"

Business is booming at Zeller's Ski & Sport

Analysts say the increasing inflation rate isn’t just affecting winter sports products.

"Gasoline prices in the United States really reflect global market conditions and today the market is pretty tight," Center for Strategic & International Studies Energy Analyst Ben Cahill said.

That market is hitting Zeller's bottom line. But with many looking for outdoor activities as the pandemic continues, he isn't worried about his 70-year-old business.

History of Inflation

"Hopefully people will continue and not go back to a more sedentary life and want to keep doing these outdoor activities and being outside and being fit and having fun," Zeller said.