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You can always raise prices for the products you sell, but it’s very difficult to cut those prices later.
by irrational 5y ago
You can always raise prices for the products you sell, but it’s very difficult to cut those prices later.
- bruce511 5y agoEh? Your logic seems backwards to me. Who's going to complain if you lower your prices (or have a never ending special?) So perhaps you are suggesting that you cannot practically reduce prices because you become addicted to the extra income?
- irrational 5y agoGas went from $3.50 - $5 overnight where I live. I guarantee it will not drop back down to $3.50 that quickly. Did my income rise to cover the extra $45 it now costs to fill up my truck? No. Same with everything else. Prices are going up like gangbusters, but my income is static. Those rising prices MAY come down someday, but probably not back to where they used to be.
- bruce511 5y agoAh, I understand, you're saying that from a consumer perspective prices go up, but are slow to come down. That is clearly the case. Ultimately inflation works by driving prices up. So the extra $45 will ultimately be made up on your income side, basically by you putting your prices up, thus fueling the cycle. Inflation on basic necessities like energy and food have more knock ons than non essentials. Ultimately the fuel vendor is covering not just the increase in fuel to him, but also the increases needed for his staff.