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Who doesn't have cost increases?
by heliodor 4y ago
Who doesn't have cost increases?
- orra 4y agoI’ll rephrase what the other user said: businesses are not typical consumers. And CPI measures typical consumer price inflation. Hence, it's disingenuous for businesses to put up prices by CPI. In fact, businesses putting up prices is often a driver of CPI. Businesses face their own changes in prices, yes, but not by CPI.
- whimsicalism 4y agoBusinesses price at willingness to pay.
- zeroonetwothree 4y agoThey also have the PPI, which measures costs to businesses. It's roughly equal to CPI: https://www.bls.gov/ppi/ https://www.bls.gov/ppi/
- orra 4y agoUsing PPI is probably more honest than CPI. But the other problem remains, that a 'typical' measure doesn't reflect each individual business.
- suzzer99 4y agoA buddy of mine works for a company that makes industrial lighting. He said they raised prices 3x last year and their costs didn't go up at all.
- williamcotton 4y agoWhat about their competitors? Can't they undersell them and capture most of their customers and still have great margins?
- suzzer99 4y agoNo idea. Might be some soft collusion going on. I can't imagine the industry has a ton of players. Or they just took the opportunity when customers are expecting price hikes anyway.