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To an extent costs did rise. All sorts of materials are costlier. Rent is higher. Labor is paid more. Pre pandemic was what 6-7 years ago at this point, thats a

• insane_dreamer 2y ago
  Not expecting prices to be flat. But the cost of raw materials did not rise 50% to 100%, neither did wages. Residential rents jumped, but commercial rents -- which is what would affect cost of business -- did not. So there's not really any way to explain this other than companies along the chain realizing that the prices are sticking (meaning customers are still buying) so there's no reason to go back. But the reason that the customers are still buying is because in many cases, as the article brings out, there is serious consolidation of the market which means that there's not enough competition to push prices back down. > If companies like trek were making appreciable more profit margin today than 7 years ago, it should be apparent in their quarterly reports no? Trek is private so we can't know. But in the original article the author cites examples of companies with a monopolistic position increasing profits. Also, it may not be the consumer-facing company -- Trek -- that is taking the bulk of those profits, but a supplier with a hold on the market (i.e., Shimano-SRAM duopoly) that is.