Capitalist Opportunists

Companies use inflation to hike prices and generate huge profits, report says
www.cbsnews.com...


Capitalism, isn't it? If the numbers say that stuff costs 8% more than it did a year ago shouldn't you be charging 8% more than you were a year ago?

Or, as an honest businessman, should you think, "Well, my margin hasn't changed and that's fine with me."

Keeping prices down would seem to offer a competitive advantage. Or is that just long term thinking in a short term world?

originally posted by: Phage
Companies use inflation to hike prices and generate huge profits, report says
www.cbsnews.com...


Capitalism, isn't it? If the numbers say that stuff costs 8% more than it did a year ago shouldn't you be charging 8% more than you were a year ago?

Or, as an honest businessman, should you think, "Well, my margin hasn't changed and that's fine with me."

Keeping prices down would seem to offer a competitive advantage. Or is that just long term thinking in a short term world?

You are thinking back in our days .
This is a new world .
Profit margins and stock values rule the day .
Consumer be damned .
Investors are the new consumers .

Companies had rather sell 1 item at $100 than 2 items at $75 each

a reply to: Phage

Capitalist Opportunists

I'm not sure you can use those two words together , they cancel each other out do they not ?

Capitalism is in and of itself an opportunistic System , The Businessman is meant to take advantage of the Customer in a capitalist system . Now some Businessman may seem more moral than others but at the end of the day the goal is to get the money from the working peoples pocket .

Taking advantage of Inflation is just a knee jerk reaction for any competent business , that does not make it the right thing to do but it's not a surprise by any stretch .

Just take a look at the housing market , there is another bubble just like the last and people are making as much as they can off of it knowing full well it will burst again causing mayhem.

Make what you can while you can and deal with the fall out later and hopefully the next bubble will clean up the last this is the capitalist way and it's always hanging by a thread.

a reply to: Gothmog

Nothing in the market makes any sense or bears much resemblance to the actual state of the economy. Inflation is up and the market is...unsettled.

But it seems that you agree that short term thinking can be problematic. Are you a Buffettist? Nothing to be ashamed of.

originally posted by: Phage
a reply to: Gothmog

Nothing in the market makes any sense or bears much resemblance to the actual state of the economy. Inflation is up and the market is...unsettled.

But it seems that you agree that short term thinking can be problematic. Are you a Buffettist? Nothing to be ashamed of.

I am a realist
Buffett and (of course) Berkshire Hathaway have pulled back somewhat from some of these companies over the years from what I have read.

Edited as the way I put it was too generalized .

Capitalism is different now. Companies like twitter aren't interested in making a profit, because they are essentially state sponsored. So you have to distinguish between regular capitalism and state sponsored "capitalism" like facebook/twitter/etc. State sponsored could also be globalist sponsored. Keep pouring money into something that makes me no money as long as I can censor the people I disagree with, which achieves my larger agenda.

a reply to: asabuvsobelow

Just take a look a the housing market , there is another bubble just like the last and people are making as much as they can off of it knowing full well it will burst again causing mayhem

Not exactly "just like the last". The "last" bubble occurred mostly because virtually anyone was granted a mortgage loan. It's not so easy to do that anymore. I couldn't get a refi (when rates were better) because my D/I isn't quite up to snuff.

My monthly payment (which I have been making without fail for 12 years) would have been reduced but I couldn't get the loan. Why, because some rules were added (restored).

What happened in 2008 isn't going to happen again. Not for the same reason, anyway.

a reply to: Phage

The "last" bubble occurred mostly because virtually anyone was granted a mortgage loan.

"Virtually" ?
You are too nice .
"Homes for everyone" was the motto .
"You bring in $800 a month unemployment ?"
"You are qualified for this low fixed (for 2 years) "floating mortgage" loan for $120,000"
"Sign here"

This is the result of all those wage increases….😂

But seriously, yes, profit numbers have increased.. so have expenses.

a reply to: Bluntone22

The article says that margins have increased.

originally posted by: Gothmog
a reply to: Phage

The "last" bubble occurred mostly because virtually anyone was granted a mortgage loan.

"Virtually" ?
You are too nice .
"Homes for everyone" was the motto .
"You bring in $800 a month unemployment ?"
"You are qualified for this low fixed (for 2 years) "floating mortgage" loan for $120,000"
"Sign here"

Remember when bush jr warned about this very thing?
And Barney frank said he was wrong?

a reply to: Bluntone22

Remember who controlled Congress when banking laws were relaxed?

Capitalism! Unrestrained!

originally posted by: Bluntone22

originally posted by: Gothmog
a reply to: Phage

The "last" bubble occurred mostly because virtually anyone was granted a mortgage loan.

"Virtually" ?
You are too nice .
"Homes for everyone" was the motto .
"You bring in $800 a month unemployment ?"
"You are qualified for this low fixed (for 2 years) "floating mortgage" loan for $120,000"
"Sign here"

Remember when bush jr warned about this very thing?
And Barney frank said he was wrong?

As I say on Memorial Day :
"I remember"

originally posted by: Phage
a reply to: Bluntone22

The article says that margins have increased.

It also said this..

“ It's time corporations finally help shoulder the burden average Americans have taken on throughout the health crisis," Herrig said. "Corporations can start by stabilizing prices for consumers instead of pursuing even higher profits — on top of finally paying their fair share in taxes."”

That’s the government controlling the pricing of private business.
The exact thing that bankrupted the railroad industry in America.

You gotta love the term “fair share” too. 😉


As for the margins..
The environment today is so up in the air that this sort of increase only makes sense. The supply chain is crazy and makes it impossible to predict future expenses. Price quotes from suppliers used to be good for several months and is now only valid for several days. That is if you can even get the parts or materials.

a reply to: Bluntone22

Sounds good.

What the market will bear, and such like. Especially when it comes to things like medicine and fuel.

a reply to: Bluntone22

instead of pursuing even higher profits

The term as used is incorrect.
"higher profit margin" would be the correct term .
"Profit" describes how well a company is doing.
"Profit Margin" only describes how well a company can market .

a reply to: Phage

Phage, first off, glad to see you are still amongst the living.

Second, I run a business. It's not a huge corporation or anything and certainly not on the stock market.

I really resist raising prices as much as possible. I assume when i do i will have less business as a result. We have had to raise prices last year and now i am in the middle of getting the data together to raise them again. It's a pain in the ass to raise prices, because i analyze each thing and the current cost going into it. Then you have to actually go in and change the price in the accounting system. A fair amount of work.

Anyway, we have no choice to raise prices. We are a manufacturing company and the cost of materials and labor have definitely gone up. This cost increase doesn't mean we are going to pocket a bunch of extra profit. It just means maybe we will get to keep in existence.

a reply to: MRinder

Then you are the good businessman I mentioned. You're not raising prices just because you can.

I'm fortunate to work in a building which has a food court on the ground floor. Since I don't make my own lunch I go downstairs each day. I know those businessmen and they know me. It was only this year that they have raised their prices and I don't have any problem with that, I'm pretty sure their margin is as low as it ever was.

But I did start eating a bowl of oatmeal at home instead of buying breakfast there too. Because, budgets and stuff.

a reply to: MRinder

Anyone that is in manufacturing and has to get either raw materials or other finished products to use in production is certainly dealing with supply issues and increased costs.
I would even bet dollars to donuts you are having staffing troubles too.

a reply to: Bluntone22

Do tariffs on foreign products reduce those costs?