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It would probably be more meaningful to compare these input prices to the bakery’s final sale price. That is, list the prices they charge for an item with the p

by SilasX 4y ago

It would probably be more meaningful to compare these input prices to the bakery’s final sale price. That is, list the prices they charge for an item with the price of the inputs, and how that changed over time. Food inputs are usually a trivial fraction of retail price. IIRC the restaurant rule of thumb is 1/3. Much lower if not full service (the bakery probably isn’t). I suspect a bigger cause of higher prices would be the bakery needing to charge bigger margins to cover rent increases.

egberts1 4y ago
As a merchant would go, markup is a competitive datapoint and is usually withheld.
QuarterReptile 4y ago
>Food inputs are usually a trivial fraction of retail price. IIRC the restaurant rule of thumb is 1/3. 1/3... So, it's 'trivial' about as much as housing costs are trivial in household budgets.
- SilasX 4y ago
  I was comparing to a case where the figure would be much, much higher than it would be for this bakery. But even then, a 30% increase in input prices would only translate into a 10% increase in food prices, or a $4 bagel becomes $4.40. Woe is us!
  - yunohn 4y ago
    I’m not sure why you’re being sarcastic. Everything is going up 10-30-50%. That is far from trivial and affects my monthly expenditure significantly. When’s the last time you got an unannounced 10% salary bump? Would a 10% decrease in salary not affect you?
    - SilasX 4y ago
      I wasn’t being sarcastic on the core point, and, again, 10% is much higher than the actual figure would be. I regret even mentioning that figure now, since you’ve fixated on it as word of god, when it was only intended as an upper bound. The point is, an X% increase in flour prices not explain an X% increase in bakery item prices, rendering the core premise of the Twitter thread moot. If you want to contribute to this discussion, you could provide relevant information on what the actual figures would be, rather than lecturing me on how painful some bakery-unrelated 10%-price-increases are . Do you agree that might be a better use of your time? The link is about an attempt to explain inflation by flour being 30% more expensive, not an invitation for general thoughts on why 10% inflation is bad.

by SilasX 4y ago

egberts1 4y ago

As a merchant would go, markup is a competitive datapoint and is usually withheld.

QuarterReptile 4y ago

>Food inputs are usually a trivial fraction of retail price. IIRC the restaurant rule of thumb is 1/3. 1/3... So, it's 'trivial' about as much as housing costs are trivial in household budgets.

SilasX 4y ago
I was comparing to a case where the figure would be much, much higher than it would be for this bakery. But even then, a 30% increase in input prices would only translate into a 10% increase in food prices, or a $4 bagel becomes $4.40. Woe is us!
- yunohn 4y ago
  I’m not sure why you’re being sarcastic. Everything is going up 10-30-50%. That is far from trivial and affects my monthly expenditure significantly. When’s the last time you got an unannounced 10% salary bump? Would a 10% decrease in salary not affect you?
  - SilasX 4y ago
    I wasn’t being sarcastic on the core point, and, again, 10% is much higher than the actual figure would be. I regret even mentioning that figure now, since you’ve fixated on it as word of god, when it was only intended as an upper bound. The point is, an X% increase in flour prices not explain an X% increase in bakery item prices, rendering the core premise of the Twitter thread moot. If you want to contribute to this discussion, you could provide relevant information on what the actual figures would be, rather than lecturing me on how painful some bakery-unrelated 10%-price-increases are . Do you agree that might be a better use of your time? The link is about an attempt to explain inflation by flour being 30% more expensive, not an invitation for general thoughts on why 10% inflation is bad.