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A retailer would be irrational to let stock run out instead of continuously raising prices.
by xnx 2y ago
A retailer would be irrational to let stock run out instead of continuously raising prices.
- ARandumGuy 2y agoFor stuff that people need and will buy at heavily inflated prices, sure. But there are a lot of non-essential items that people probably won't buy if the price increases significantly. And for those items, I suspect a lot of stores will just let the shelves stay empty instead of spending a lot of money for inventory they can't sell.
- ModernMech 2y agoCandy bars for example. They want to charge $3 for a single candy bar now, but no one wants to pay that much so they're selling them 2 for $5. But retailers have studied that this trick isn't going to last because not everyone wants to buy candy bars in bulk, and they won't spend more than $3 for a single candy bar, which means if it goes any higher they won't by any candy bars at all.
- 9rx 2y agoThe customer will only bear so much, though, so at some point the businesses that keep buying stock and raising prices will be left with stock that cannot be priced any higher, leaving it to be unloaded at a loss. That can be a far worse situation than not having any stock at all. Either way, it is an uncomfortable gamble.
- duxup 2y agoDepends on the product and if your marketing is low prices do you want to be the one to first crank them up and get Trump all upset?
- teeray 2y agoNot enough greed: Stockpile in a back warehouse and raise prices on the two or three items per day you allow on the shelves.