Demand For Batteries Is Shrinking, Yet Prices Keep On Going and Going ... Up (wsj.com)
schwit1 shares a report: Batteries on average cost 8.2% more than a year ago, while prices in the overall household-care segment rose only 1.8%, according to Nielsen. At a time when prices are stagnating on everything from toilet paper to diapers, such pricing power for a product that is increasingly obsolete has confounded shoppers [Editor's note: the link may be paywalled]. "As far as the prices go, you don't have a choice," said Samuel Hurly, a contractor from Mount Vernon, N.Y., as he scanned a Home Depot display of AAA batteries to power flashlights he uses on the job. Batteries ordered online take too long to arrive, Mr. Hurly said, and he finds cheaper, private-label options lose power too quickly.
Battery prices were more likely to fluctuate a few years ago, when Duracell was owned by consumer-products giant Procter & Gamble Co. and Energizer was part of Edgewell Personal Care Co. Those companies were more focused on their bigger, more profitable razor businesses -- Edgewell with Schick and P&G with Gillette. They would invest less in batteries, or slash prices to drive up volume, to compensate for weak sales in other units, said SunTrust analyst Bill Chappell. Energizer Holdings Inc. spun off from Edgewell in 2015, and Duracell broke apart from P&G a year later when it was acquired by Warren Buffett's Berkshire Hathaway Inc. schwit1 asks, "Both businesses have become more profit-focused since separating from their previous owners. Is the Energizer/Duracell duopoly ripe for disruption?"
Battery prices were more likely to fluctuate a few years ago, when Duracell was owned by consumer-products giant Procter & Gamble Co. and Energizer was part of Edgewell Personal Care Co. Those companies were more focused on their bigger, more profitable razor businesses -- Edgewell with Schick and P&G with Gillette. They would invest less in batteries, or slash prices to drive up volume, to compensate for weak sales in other units, said SunTrust analyst Bill Chappell. Energizer Holdings Inc. spun off from Edgewell in 2015, and Duracell broke apart from P&G a year later when it was acquired by Warren Buffett's Berkshire Hathaway Inc. schwit1 asks, "Both businesses have become more profit-focused since separating from their previous owners. Is the Energizer/Duracell duopoly ripe for disruption?"
And not environmentally friendly to have disposable batteries with plastics and electrolyte compounds tossed into landfills.
Time to ban disposable batteries and introduce LiON chemistry replacement cartridges for these old AA and AAA cells.
The price of lithium has skyrocketed in the last few years, so I assume the profit margins went down since the price of batteries didn't go lock step. Lithium batteries are one of the main things keeping EVs from being carbon neutral off the lot and they are just generally pretty bad for the environment. Hopefully graphene batteries come sooner rather than later.
Nobody should be buying any batteries that aren't Eneloop rechargeables. They come charged, do not self discharge appreciably, and perform better than alkalines in most situations. Once you have a set you can keep using and recharging them for many years. I have decade old Eneloops that still work great.
Sanyo (later Panasonic) solved the rechargeable battery problem completely.
Buy your batteries from Costco. A 72-pack of AAs costs around $20. They are every bit as good as Energizers or Duracells and they cost a fraction of the price.
As stated in the article:
... this doesn't even pertain explicitly to batteries, it is a fact of life about most consumables.
1) Off-brand sucks
2) People are too lazy to think ahead and buy on-line.
Most goods are available cheaper/better on-line, but if you're going to wait until you absolutely need it you will be stuck with whatever local pricing and availability is.
I haven't noticed prices going up up up for batteries. I don't see any links or sources cited for this claim.
"Batteries ordered online take too long to arrive [...]"
You know you're gonna need them, order more of them, earlier. Better yet, get rechargeable ones. 18650 is a standard battery size/format used in plenty of things, especially flashlights and vapes, among other things. The Samsung 25-R's I have been using for several years now are $5 each from a place like illumn.com, and the 2-slot charger with protection and maintenance features was less than $20, and fits many sizes and chemistry of batteries.
This guy is dumb and/or lazy.
We rarely ever buy regular batteries for anything. Maybe once in the last 10 years, a bundle of Kirkland AA's for a camping excursion where I gave out a bunch of cheap $3 mini-lanterns to all of the our friends and family.
Otherwise, we've switched all of our Flashlights over to rechargeable 14500, 18650, and 26650 cells. A few other LED lights around the house use rechargeable double or triple A's.
what of Rayovac (Canada) ? and Varta (Germany) ?
Just bought the domain
We're seeing the results of said disruption. Cheap, pretty decent batteries that charge the same way as my phone.
Portable speakers, portable phone chargers, emergency flashlights, all of these used to have single use batteries, now many have rechargeable built in.
I don't buy anything that's not rechargable. I have a few AA and AAA I keep charged, but basically, I want everything I have to be chargable.
Sure, my flashlight won't last as long, but so what, I can keep it charged and get plenty of time out of it.
I'm sure I'm not the only use case, but it doesn't matter, I'm clearly a large enough use case that it's driving single use batteries into a niche market.
I can get an 1860 cell that has similar energy to a AA, sure, it's bigger, but not much, and more power efficient items have made it so we don't need as many total mAh.
I'd rather have a slightly larger item that can be recharged personally, then I never need a battery.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
Battery markups are not measured in percent, but multiples... 10X markup is not uncommon.
Really, this is "news that matters"? And to add to it the link is to the WSJ which is paywalled. How did this end up on slashdot?
Sent from my TARDIS
Demand for batteries is likely going up, driven by electric cars, computers, phones, etc. What's going down is demand for STANDARD batteries. Many devices have proprietary batteries of all different sizes, often inaccessible to the user.
Thing is, there's no good reason for it other than planned obsolescence. Take smartphones. Almost all of them use 3.7V LiIon batteries. Most of them are about 5 to 6 inches diagonally, with a specific height/width ratio. Time for an industry standard for swappable smartphone batteries. Imagine if you could just buy a battery at 7-11, pop the door, and swap it in when your phone's battery dies. Or maybe have a few different sizes, depending on screen size. Call then X, Y, and Z.
But no, this will never happen because throwing things away is a big profit center for sellers of e-trinkets.
There are rechargeable equivalents for virtually all kinds of batteries, AA, AAA, CR123, CR2, etc. Have yet to see rechargeable 9v cells, but how often do you need one?
People are just lazy and cheap, and not responsible.
It seems like years ago, I got disgusted with the high retail prices for the 4 or 8 packs of alkaline batteries on store shelves, so I made a concerted effort to stop buying them that way.
There's regularly a GroupOn special (like one I just saw yesterday for a 72-pack of Sony alkaline AA batteries) where you get them quite inexpensively in bulk.
I got something similar from Costco for free a year ago as one of a number of coupons they included with our membership purchase.
In other cases, it just makes sense to buy rechargeable batteries instead.
And lastly? For those pesky 9 volt batteries that we need for our smoke alarms, I started buying the yellow IKEA batteries. They're inexpensive compared to Duracell or Energizer but seem to get the job done.
Seriously, rayovacs are made in America and costs less than Duracell/Energizer. Both of those brands are EXPENSIVE and really do not do that great of a job.,
I prefer the "u" in honour as it seems to be missing these days.
I would say that like incandescent light bulbs, todays alkaline batteries are nothing like yesterdays. I'd love to see a graph of useful power output per dollar over time. Cheap dollar store batteries today are likely as good as the energizers and duracells of a decade or so ago.
Doesn't help that Rayovac was bought out by the company that owns Energizer. Rayovac had come up in quality to surpass Duracell and Energizer, but I am seeing them less and less in stores.
People have found a better alternitive in high capacity low loss rechargable batteries. Why spend $1 a battery on disposables when you can spend $2 on rechargables that last 500 cycles and not add to the landfill. The only reason they cost so much is because the industry is squeezing the last few pennies out of the suckers that still cling on and wont find an alternative until they need to. Just like the cable industry is doing to people who have not discovered streaming.
Some devices can't use rechargeable for some reason - discharge rate or something I was told by the tech support people.
And I've actually had tech support people at a thermometer company (AcuRite) tell me what brand to use - the stupid thing wouldn't work. The Duracells wouldn't work and told me to use Rayovac batteries. I returned the POS.
My local stores just sell Duracell and Energizer.
I mean seriously, designing circuits that can only use one brand of battery? Or circuits that can't use rechargables?
He's a contractor and using flashlights that run on AAA batteries. He could use a flashlight that runs on the same batteries that are in his drill and other cordless tools but he's a moron.
What a brilliant marketing. Instead of the basic cheap gear with replaceable single blades people now use disposable razors with 5 blades which look like an F1 car. Imagine the increase of revenue that means.
And yes I still use the oldfashioned gear...
I don't think there's much to explain here. There's a fixed investment in the facilities and equipment to make batteries. The cost of that is distributed among the buyers.
Everyone else here seems to be commenting on the technical chemistry aspects of battery design, but I just couldn't get past this bit: "Batteries ordered online take too long to arrive, Mr. Hurly said".
In the USA and not 200 miles into deliveranceville? Are you lying or just a dolt? I can get on Amazon and have AAA's on my doorstep by tomorrow for no extra shipping charge or if it's included in an order over $35 have it here TODAY. Does this cat race to X hardware store every 5 minutes to buy batteries or something?
PISS POOR PLANNING PREVENTS PROPER PERFORMANCE. Do we need a little blue dash button for contractors ordering batteries or something when their flashlights can't put out?
Duracells and Energizers are hugely overpriced. Stop buying them. You can get 8 AA or AAA batteries for $1 at the dollar store. They work fine.
I have a wife and kids. We use a lot of batteries. I am not saying I found the best way to do this, but this system works extremely well for us. Advice and opinions interspersed below:
1. If you must buy disposable batteries, read Consumer Reports reviews and buy a top-rated off-brand. Some of the top-rated batteries are a fraction of the price of the two leading brands, Duracell and Energizer. In one review the Ikea batteries were the best deal by a mile.
2. Never use disposable lead-acid batteries unless you have to. One of the few cases now is when I give away stuff which takes batteries. Explaining battery charging to my elderly mother-in-law and getting her to do that would be impossible. Smoke/fire detectors are another case. Also, my UPS from my computer.
3. Buy a battery tester. It is maddening to have a bunch of old or party-used batteries around and not know which are good and which bad. Great battery testers are cheap.
4. Keep in mind that disposable lead-acid batteries suck. They can leak and destroy valuable equipment. They contain lead, a toxic element proven to lower IQ in children even in small quantities. The leaked acid can burn skin, it is especially a hazard to children who do no know to be wary. If you throw them out, the lead in the landfills will be a serious problem for a very long time in the future. Recycling lead-acid batteries is usually a nuisance.
5. For AA, AAA, C, D get NiMH rechargeables. Do not buy in the store, order online, where you can get quality batteries for cheap. Get enough that you can you can have batteries in every device and simultaneously charged/charging backups. NiMH hold a charge for a year+.
6. Get a top-rated smart charger which holds multiple battery types.
7. Consider getting devices purpose-built for Lithium cells. The 18650 cells will charge in the same charger, linked above, as used for NiMH cells. Make sure to get a quality Lithium battery, the cheap no-name ones are junk. The 18650 LED flashlights are fantastic. Avoid Lithium 14500 batteries, they are an accident waiting to happen since they are 3.7 volts but the size of a 1.5 volt AA battery.
8. One key to making the system work is to keep all the battery stuff, spare batteries, testers, watch batteries etc together in one place. I use a rubbermaid plastic box. Rubber bands and ziploc bags group and isolate loose batteries and along with the box compartmentalize leaks. Keep the charger plugged in in one place. Organization is essential, because if you are digging through draws, shelves and cabinets looking for batteries or the meter wondering where you left it then you are wasting time and driving yourself mad.
Ceci n'est pas une signature.
If a contractor needs it, they need it today. Contractors buy as needed, and are used to just picking up more on the next supply run. Small things bought ahead of time just wind up lost behind the pile of extra parts in the truck or shop. But yea you just sit there on your couch with the 'easy order' button.
Go and buy your batteries in RadioShack. They even have a battery of the month loyalty programme.
All jokes aside, If Energizer and Duracell are gouguing you, you can always buy Ray-o-Vac, Panasonic or Varta batteries...
Or even better: Buy Some Rechargable AAA (with suitable adapters for AA usage*) and 9Volts and help mother earth.
Buy aslo AA but only if you really need the extra oomph.
*** Suerte a todos y Feliz dia!
Out of the hundreds used in the classroom, I had a Meijer NiMH AA burn while sitting out, not touching anything conductive. Took it to the fire department and never heard about it again. Since then I have dumped all of my Meijer NiMH batteries.
Wasn't that many years ago you could buy a 4-pack of carbon filament light bulbs for under a dollar. Now shops are asking $7 - $9 each for them. Could it be artificial inflation so that LED bulbs have less competition, I wonder?
All i use. nuff said.
Alkaline cells are 1.5v. Neither NiMH or previous generation NiCad cells are that high... NiMH is around 1.2V under load. For some devices this matters. There's one device that I have to coach people on using at work, with NiMH cells, the battery charge indicator always looks half-used which freaks the users out... even though it will work longer at about "half-used" than the original alkaline cells would starting from "full".
Some things don't work at all at the lower voltage.
Demand isn't on the decline because batteries are unnecessary, it's because millennials don't know how to use them. Mark my words, it'll bear itself out.
If a contractor needs it, they need it today. Contractors buy as needed, and are used to just picking up more on the next supply run. Small things bought ahead of time just wind up lost behind the pile of extra parts in the truck or shop. But yea you just sit there on your couch with the 'easy order' button.
If a professional contractor doesn't have a supply of standard batteries, you should be finding a new contractor. Same with basic tools. The first thing I thought when reading that quote was what kind of contractor doesn't just periodically buy batteries in bulk?
He's a contractor and using flashlights that run on AAA batteries. He could use a flashlight that runs on the same batteries that are in his drill and other cordless tools but he's a moron.
He's just a moron for not buying AAA batteries in bulk and thus properly planning, that's all.
And you're a moron for assuming that someone who uses a drill and other cordless tools doesn't value a charged tool battery over a flashlight. I can use a fucking cell phone flashlight in a pinch. When your cordless drill battery is dead, so is your ability to work.
"... you don't have a choice" ...
Meaning, consumers without the intelligence to buy/recharge in advance are paying more. There's Nickel-Zinc 1.5 volt recharge-able, the newer 18650 (flat-top) recharge-able. We need more devices to use standard batteries. Every time I buy a new phone (rare event) I have to buy a new spare battery for it although I can use the same charger.
Batteries Prices Keep On Going and Going Up.... Demand Is Shrinking
Sounds reasonable.
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That is not really a fair comparison: those batteries (tools) are far heavier and bulkier than most current LED flashlights, especially the ones you can mount on your helmet or strap on your head to keep your hands free - very useful for a contractor or even the occasional home handyman like myself. I'd hate to try and wear the battery pack from my drill on my head... That's not to say they could not be made rechargeable, maybe just as a single 3.7V LiOn, with a separate recharge port on the same bulky tool battery recharger.
According to whom? I use AA and AAA Eneloops all the time, in umpteen different devices - remote controls, alarm clocks, torches, cassette player (yes, seriously).
The sad part is. They are typically all the same battery. When I recently replaced my smoke detector batteries, I bought some EverReady batteries. I looked on the box, and it says EverReady is owned by Energizer. When I removed the old Rayovac battery from the smoke detector, it said "made in Malaysia" on the bottom, with a code. The EverReady had the same code and was also made in Malaysia.
I doubt this was a coincidence. I'm pretty sure they all come from the same factory. A friend of mine that used to work in the automotive battery business told me this was common.
One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
Demand is shrinking *yet* prices are going up?
Have you ever seen the prices on low-demand items? Less quantity means higher overheads per sale, so prices are higher.
Conversely, the Law of Demand says that as the price goes up, demand reduces.
Why would anyone be remotely surprised that shrinking demand leads to higher prices?
Hmm. Probably the same guy that thinks the term "batteries" describes only discardable AA and AAA cells.
Electronic devices, including LED flashlights, tend to be *current* devices. If you put in a 1.5V battery, it draws the right amount of current to work. If you put in a 1.2V battery, it still draws the right amount of current to work. If you put in a 0.32V battery, it can't draw enough current and won't work.
On the other hand, if you have an essentially ohmic device, like an incandescent flashlight not electronically controlled, or a poorly designed electronic device, designed for 1.5V, it will not work well with a 1.2V battery.
Why has battery demand gone down? One simple reason: Smart phones have obsoleted dozens of previously separate product categories which were battery-driven. Eliminate these separate products and the demand for batteries drops.
The other factor: economies of scale which only exist at high volume. Drop the demand and volume drops, and you drop out of the scaling peak where costs are minimized so prices go up to maintain the same margins.
Not really surprising.
Rechargeables!
Contractor drill batteries are even more expensive than replacing AAAs... not the savings you think it is.