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> Reckless spending played a part, but a major (if not the biggest) component was every company getting it into their heads to "test the price advantage" of the

by bko 2y ago

> Reckless spending played a part, but a major (if not the biggest) component was every company getting it into their heads to "test the price advantage" of their products What makes 2022 so unique that just now corporations figured out they can raise prices? Why haven't profit margins taken off in 2022 [0] ? These always struck me as bad explanation. Mostly hand waving. I think a more reasonable explanation is that increasing the money supply over 30% in a few years resulted in prices and asset levels going up ~30%. [0] https://www.gurufocus.com/economic_indicators/62/corporate-profit-margin-after-tax- https://www.gurufocus.com/economic_indicators/62/corporate-p...

teeray 2y ago
> What makes 2022 so unique COVID was the omni-excuse. You didn’t have to say “we’re raising prices because we want to make obscene profits.” Instead, you could shrug sympathetically with the customer and say, “well, you know, times are tough. It’s hard to get the things you need, and we’re trying to get this at a price as affordable as we can… oh, also, hit the tip button on the screen from now on because our staff are working so hard through the pandemic and it’s so hard to find help (at the price we want to pay).” Never underestimate a good story.
- bko 2y ago
  So why didn't profit margins go up to "obscene profit" level?
  - bryanlarsen 2y ago
    The article is arguing that they did through royalty fees.
highcountess 2y ago
I don’t know the answer, but I have noticed something clearly rather odd going on in the grocery sector/industry, an industry that was probably the least affected by the lockdown command economy than any industry and by far margin. There is one niche but growing discount grocer that effectively has prices similar albeit elevated, from pre-lockdown prices, while other larger, mainstream general grocers have far higher prices, as measured by staple goods like eggs, milk, beef, chicken, etc.

by bko 2y ago

teeray 2y ago

> What makes 2022 so unique COVID was the omni-excuse. You didn’t have to say “we’re raising prices because we want to make obscene profits.” Instead, you could shrug sympathetically with the customer and say, “well, you know, times are tough. It’s hard to get the things you need, and we’re trying to get this at a price as affordable as we can… oh, also, hit the tip button on the screen from now on because our staff are working so hard through the pandemic and it’s so hard to find help (at the price we want to pay).” Never underestimate a good story.

bko 2y ago
So why didn't profit margins go up to "obscene profit" level?
- bryanlarsen 2y ago
  The article is arguing that they did through royalty fees.

highcountess 2y ago

I don’t know the answer, but I have noticed something clearly rather odd going on in the grocery sector/industry, an industry that was probably the least affected by the lockdown command economy than any industry and by far margin. There is one niche but growing discount grocer that effectively has prices similar albeit elevated, from pre-lockdown prices, while other larger, mainstream general grocers have far higher prices, as measured by staple goods like eggs, milk, beef, chicken, etc.