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Prices increase when costs go up. If you’re selling widgets and your wholesale price goes up, you have to increase the retail price or your margins drop.
by chongli 3y ago
Prices increase when costs go up. If you’re selling widgets and your wholesale price goes up, you have to increase the retail price or your margins drop.
- kcatskcolbdi 3y ago> Prices increase when costs go up I'd contend that costs going up is _a_ cause of price increases. The reason a soda costs more from a movie theater than a supermarket is not because a soda costs more to make in the movie theater, for instance.
- Naijoko 3y agoFor example the price of Art is judged by the buyer. There is no production cost or whatever.
- burkaman 3y agoPrices increase when a seller increases them. That could be because their costs went up, but it also could just be because they felt like people would pay more.
- chii 3y ago> because they felt like people would pay more. but if that was true, why did it happen only during the pandemic and not before? At any point in time, if a business felt like their customer could've paid more, the business should be increasing that price. So the recent price rises cannot be explained with this train of argument. Unless, of course, the pandemic somehow made it so that people could pay more.
- burkaman 3y agoIt happened all the time before the pandemic, I'm not sure what you mean.
- creer 3y agoSure, sure but why did the costs go up? You can blame a price increase on everyone else but that does not answer the question.