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I think price-gouging laws could also have something to do with this. Suppliers have increased their prices in what is essentially protracted inflation from dem
by tarikjn 6y ago
I think price-gouging laws could also have something to do with this. Suppliers have increased their prices in what is essentially protracted inflation from demand. But in most states retailers are not legally allowed to increase price tags which was triggered in March when most states entered a state of emergency/declared disaster [1]. So the results is that retailers have to stop stocking these or they lose money; and the increased demand doesn't fully reach suppliers which means that in turn, manufacturers have also less incentives to increase production.
[1] https://www.natlawreview.com/article/price-gouging-laws-and-overlapping-states-emergency https://www.natlawreview.com/article/price-gouging-laws-and-...
- mistrial9 6y agoPlease clarify ".. So the results is that retailers have to stop stocking these or they lose money .. "
- tarikjn 6y agoCiting from https://www.patriotsoftware.com/blog/accounting/price-gouging-laws-by-state/ https://www.patriotsoftware.com/blog/accounting/price-gougin... > New York's Consumer Protection Law prohibits price gouging during an emergency: What is considered price gouging: 10% or more price increase. When price gouging laws apply: During an emergency. Products or services the law applies to: Necessities. Say your gross margins on said masks were 50%, you paid $1 per mask and sold them $1.50 plus tax. Now the same branded masks are $2-3 from the supplier and you cannot legally sell them without losing money.
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- deleted 6y ago[deleted]
- dillonmckay 6y agoThe market rate for a single N95 mask in the US is approx. $18.