It's a lot of things.
It's higher prices on goods.
It's higher wages.
And yeah - it's good old fashioned Gordon Gecko greed.
It's higher prices on goods.
It's higher wages.
And yeah - it's good old fashioned Gordon Gecko greed.
M
member 1013
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The fuck are you talking about?
M
member 1013
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You stole my post!It’s just supply and demand guys! -@Hauler
View: https://twitter.com/TorontoStar/status/1512174632232787970?t=PcKalL4pnUdJa2jJFcIxIg&s=19
That'll be tree fiddy!
That's my gif, bruh.
M
member 1013
Guest
You can have it in CAD
M
member 1013
Guest
No, I bought it as an NFT!
$ Tree fiddy ???
Tree fiddy semmun... Inflations
Dat dam supply and demand!
M
member 3289
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8.5% from March 2021 - March 2022
Going to have to make some adjustments to get by these hard times.
Done with fast food
No more...
paper towels
paper plates
razor blades....look good in a beard, she can wear pants
expensive dog food......going to try it see what happens
TV dinners and all that microwave stuff
no more trips just for the hell of it....gas saving
try to do everything in one trip.....gas saving
no more Jack Daneils, down to cheap whiskey like AA/Kesslers
no more dog grooming
wife giving up Bible studies that is a weekly 60 mile trip.....gas saving
let the guys who do my lawns go, I own a mower.
That should help us deal with these hard times.
Done with fast food
No more...
paper towels
paper plates
razor blades....look good in a beard, she can wear pants
expensive dog food......going to try it see what happens
TV dinners and all that microwave stuff
no more trips just for the hell of it....gas saving
try to do everything in one trip.....gas saving
no more Jack Daneils, down to cheap whiskey like AA/Kesslers
no more dog grooming
wife giving up Bible studies that is a weekly 60 mile trip.....gas saving
let the guys who do my lawns go, I own a mower.
That should help us deal with these hard times.
If you increase costs and keep margins the same, profits increase.
Let's say your direct costs were $500k and you had a target margin of 30% for a net sell of $715k. After overhead you net $50k in profits.
Now - due to inflation - let's say your costs increased to $1 million for the same finished goods. If overhead remained the same and you kept that $50k profit, your margin just shrunk to 18%
You are spending more to attain the same profit. Your lending partners might have an issue with that.
I'm not saying corporations aren't goosing the prices in an effort to capitalize on the situation - I'm sure they are. But higher costs will lead to higher prices (and profit) if margins are kept static.
The #1 rule in business during inflationary periods is to protect against margin erosion.
M
member 1013
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Just keeping it real.
I've had the same conversation with salesmen who feel guilty when we raise prices. I have one guy who thinks we should just charge $4 over cost for every sheet of OSB we sell.
So if a sheet is $11 cost (it was in 2017)
Charge $15 (27% margin)
And when it jumped to $39 / sheet cost (2021) Charge $43 (9% margin)
In one scenario, $11,220 worth of material cost nets you a gross profit of $4080
In the other, $39,780 worth of material cost nets you a gross profit of $4080
LMAO. I still don't think he gets it. And he's college edumacated.
There are definitely companies taking advantage of the situation to see how far they can push it.
I deal with a few. It's irritating
I mean, that's obvious to anyone who thinks, but doesn't look as good in a tweet. Can you put that in a bar graph?
Sure. I'll get right on that.
Are you going to make it up on your typewriter?
M
member 1013
Guest
Dear, I said it was nice!
I have to stop at the craft store and get some construction paper and elmers glue.