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Profit is a lagging indicator, you can't set your prices based on what supplies used to cost and expect to stay in business. My local pizzeria had their best 2
by dahdum 5y ago
Profit is a lagging indicator, you can't set your prices based on what supplies used to cost and expect to stay in business.
My local pizzeria had their best 2 years ever during the pandemic, yet they still raised their prices this year due to labor and supply cost. I can't really fault them for not wanting to lose a bunch of money this year to somehow make up for that.
- willis936 5y agoYou're describing a static profit margin scenario, which is not what we're observing with the largest companies with the highest profits. https://www.yardeni.com/pub/sp500margin.pdf https://www.yardeni.com/pub/sp500margin.pdf