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Strange that having to raise prices boosts profits. I guess that’s how inflation works.
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I remember watching a special on the effects Wal Mart has on some businesses. Where at first the companies see getting into Wal Mart as God send, then come to regret it later.Yah I don't have a problem with a grocery store raising prices after paying higher wages locally; that money comes back to the community in large part, and those stores have a skinny margin to begin with.
But the behemoths are another story. If you know how Walmart, for instance, works to entice and then entrap suppliers by first offering them a huge market for their goods but then insisting on keeping the price it pays them low, it's pretty hard to forgive the giant when it jacks up the retail price at its own outlets. I mean Walmart is not even passing on supplier-price increases to consumers, it's refusing to let its suppliers increase those prices to begin with. Walmart is throwing its squeeze-power around like one of those ninja shuriken, since both its suppliers and consumers are getting hit.
The Wal-Mart You Don’t Know
The giant retailer’s low prices often come with a high cost. Wal-Mart’s relentless pressure can crush the companies it does business with and force them to send jobs overseas. Are we shopping our way straight to the unemployment line?www.fastcompany.com
Steve Dobbins has been bearing the brunt of that switch. He’s president and CEO of Carolina Mills, a 75-year-old North Carolina company that supplies thread, yarn, and textile finishing to apparel makers–half of which supply Wal-Mart. Carolina Mills grew steadily until 2000. But in the past three years, as its customers have gone either overseas or out of business, it has shrunk from 17 factories to 7, and from 2,600 employees to 1,200. Dobbins’s customers have begun to face imported clothing sold so cheaply to Wal-Mart that they could not compete even if they paid their workers nothing.
“People ask, ‘How can it be bad for things to come into the U.S. cheaply? How can it be bad to have a bargain at Wal-Mart?’ Sure, it’s held inflation down, and it’s great to have bargains,” says Dobbins. “But you can’t buy anything if you’re not employed. We are shopping ourselves out of jobs.”
The gallon jar of pickles at Wal-Mart became a devastating success, giving Vlasic strong sales and growth numbers–but slashing its profits by millions of dollars.
I remember watching a special on the effects Wal Mart has on some businesses. Where at first the companies see getting into Wal Mart as God send, then come to regret it later.
And yet we still get people defending the billionaires. “If you tax their wealth… average people will be next!” Is literally the kind of stupidity put forth by such defenders. Um, wake up. Average people ALREADY pay a higher percentage of their income in taxes than billionaires, by a large margin.Yes, this is still very much a thing
https://www.twitter.com/i/web/status/1492279107111067648/
https://www.twitter.com/i/web/status/1490426080360112130/
https://www.twitter.com/i/web/status/1491188788886126592/
Also with this rise in profits in the name of inflation, unionizing is gaining traction which is something even the most 'woke' corporations can't have.
https://www.twitter.com/i/web/status/1491495461886193670/
Last month, Procter & Gamble — which manufactures or distributes a wide range of cleaning and hygiene items as well as food, snacks and beverages — said on Wednesday that the company expects profits to increase into 2022, even as the cost of labor, freight and raw materials continues to rise, according The Wall Street Journal.
"The consumer is very resilient and very focused on these categories of clean home and health and hygiene," P&G finance chief Andre Schulten told the Journal.
If their costs go up $1, they charge $2 extra. Since people are already experiencing inflation, they use this opportunity to make some extra profit. If their costs go down by $1 later, they can reduce their price by $.50... so they make an extra $1.50 per item in the future. It’s all because we have such little competition these days. Allowing mega-corporations is a huge mistake. I wonder if it’s possible for regulators to ever put the genie back in the bottle? Will we ever see a huge company like Bell Telephone ("Ma Bell") broken up in the future?Yah in related piece in Salon, Proctor & Gamble goes on about how there's still room for profit margin increases via price hikes even as their costs are also on the rise. These mega-corporations do seem to count as an upside their ability to keep raising prices over the drag of higher costs of labor, materials or shipping, just because they're selling products that people need.
Giant food producers are profiteering off inflation — and bragging about it too
Big chains and suppliers like Tyson, P&G and Kroger are fattening profits by raising prices — just because they canwww.salon.com
I got news for him though (or maybe he knows he' s whistling in the wind): some consumers are very focused on making do with what's on hand when prices on stuff start to soar. Or we pitch in to share the cost of a larger size bag or a bundle when the unit price on smaller buys goes through the roof. When prices on microcloths go up, I cut up old thermal unders instead, when it comes time for spring cleaning.
Maybe the average CEO wouldn't burden himself with that info, but the ones who do understand that are careful not to cannibalize their usual array of products... or at least not to the point of ending up having to underwrite a 10-for-$10 sale to get rid of stuff they couldn't rip us off for by jacking the price to $2.19 per single box.
Yah in related piece in Salon, Proctor & Gamble goes on about how there's still room for profit margin increases via price hikes even as their costs are also on the rise. These mega-corporations do seem to count as an upside their ability to keep raising prices over the drag of higher costs of labor, materials or shipping, just because they're selling products that people need.
Giant food producers are profiteering off inflation — and bragging about it too
Big chains and suppliers like Tyson, P&G and Kroger are fattening profits by raising prices — just because they canwww.salon.com
I got news for him though (or maybe he knows he' s whistling in the wind): some consumers are very focused on making do with what's on hand when prices on stuff start to soar. Or we pitch in to share the cost of a larger size bag or a bundle when the unit price on smaller buys goes through the roof. When prices on microcloths go up, I cut up old thermal unders instead, when it comes time for spring cleaning.
Maybe the average CEO wouldn't burden himself with that info, but the ones who do understand that are careful not to cannibalize their usual array of products... or at least not to the point of ending up having to underwrite a 10-for-$10 sale to get rid of stuff they couldn't rip us off for by jacking the price to $2.19 per single box.
Earnings call after earnings call CEOs are bragging about gouging consumers. Lets pretend for a minute that all this inflation is due to increased wages. It’s not, but lets say it is. What message is that sending out? “You thought you were going to get ahead now? LOL. Fuck you.” And apparently plenty of people on the right are perfectly fine telling Americans they are never going to get ahead. So don’t even think about it. We’ll find a way to take it away from you soon after it hits your bank account.
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