Is gouging ending?
Another word for inflation is gouging. When stores and companies get wind of issues, they use it as an excuse to charge more. Well! Everyone else is doing it! Their excuses? Wage increase. OK, you gave your worker fifty cents more an hour so that gives you the right to up your price ten dollars. Higher building costs. Maybe try shutting off most of those lights at night when no one is there. Cleaners can turn on the lights in the area and room they are in..the whole building doesnt need to be lit up. Look at any city at 3am. It looks like there is a party going on. Security? Ever hear of the invention of motion activated?Taxes went up. So maybe cause your profits did? Shipping is higher. That is due to all the rest going up.
Basic greed tells companies to gouge. Walmart is now hurting. Have you checked inventory? Those you use all the time..out. Impulse buys..tons. Easter is ahead. Does anyone needs 500 different types of plastic eggs? Or the ton of other decor junk that few want to fill their house with. And store? Or toss in the landfill to re-buy next year. Walmart started out as a bulk buyer to provide goods to lower incomes. It was a success. So grew and grew and expanded areas not offered before. Then greed set in. Look at all those shoppes going to department stores to shop. Places with designer brands and higher prices like Target. Kohls, Macys, Old Navy, etc. Now..the CEO brigade thought...we need to pursue those shoppers because those poor slobs tend to buy necessities and limited items. Lets invent some of our own designers, increase prices and try to move up-town. FAIL! Quality didn't go up. Prices did. Your basic, boring, garment now is 25,30 or 50. Now the poor cant afford them. And the up-town crowd is no impressed and not shopping where the Wal-martions shop.
The government helps too. A bird tests for bird flu..so lets kill off a thousand chickens so there is a shortage of meat and eggs. Demand stays the same. So lets gouge and charge $4 for 12 eggs. I wonder how much of that the farmer sees.
Every time a refinery shuts for a week, gas goes up for 3 months. Gouging.
Now, lets look at waste. Dollar Tree now is selling No Boundary belts. Know who's brand that is? Walmart. The tags are still on with the $6 or $8 price tags. Instead of not gouging and selling that belt that China sold them for .25, they could sell them at 2 and not have to dump them to a re-seller. Or did those come from a failed Walmart?
One issue I see is the good old lost inventory, tax write off, damages, theft and other means the government provides companies. Why sell at a lower price when you get a tax break. The gouging mentality also tells them the fools who pay the high price, make up for the dumpster tosses.
But, inflation is not propelling so much. People are saying up yours, keep it. So desperate companies are starting to lower prices. It will snow ball. They cant sell high, they wont pay high. Those middle men who sign the bill of lading as that semi drives through their lot will find out they cant gouge. The trickle down will slowly work. Of course..if fools pay the high price, nothing will change.
Comments (7)
We are waiting to see how much our grocery stores provit are this time around........
As for budget stores these will be the most impacted by inflation. Vanity doesn't suffer through inflation but if what you're selling is at cost, and costs go up, then prices will go up more with proportion.