I work in medium size industrial and distribution company. I have visibility on ALL purchases for the last 25 years - everything from paper boxes to insurance to professional services, to raw materials to utilities.
For fun, I created a list of about 40 regular items we pay for and went back and checked prices to 2002. Its a crude list, and unlike the BLS or Dept of labor stats, it doesn’t count hedonics, substitution, or improvements from “better” products (for example, faster computers or better mobile phones)
From about 2002-2008 price inflation was about 3-4% per year. from 2008-2020 it went to about 6% per year.
After 2020, we’re still “recovering” from Covid. Prices of many physical goods and transport jumped immediately by 30% or more, and stayed there or only declined slightly. Labor, insurance and other items rose more slowly, but steadily. I estimate inflation since 2020 at about 12%-13% per year.
Our revenue is a lot higher, but with a headcount 20% below 20 years ago. That’s the result of inflation, but also constant improvements and investments in technology and software.
But that’s how inflation is pure government THEFT - we work our asses off to keep costs low, so that the Federal Reserve and Fed.gov can print money to STEAL all our efficiency gains, and more, with debased money
Yes. Bears repeating.
And, it is not just us. Everyone around the world who deals in dollars is being stolen from.
The reason you raised prices is secondary to your demographic. If you can’t afford the cost of rent, go back to the food truck.
Bottom line,if it cost too much, people will not buy! While I sympathizevwith your plight, you have to know what you client can afford.
Many businesses have gone out of business because they jumped on the Civid increase plan, and won’t go back down in price.
If your goal is to provide a good product at a fair price, then everything else has to adjust to meet that goal.
As a businessman,I can tell you many that go out of business, did so because of them being unwilling to adjust their prices to a point their customers can afford.
I hope you make the right decision.
Question: Would your customers object to buying your burritos from a food truck for 11 bucks? If the answer is yes, perhaps it’s the rent or location that is your problem.???
“But that’s how inflation is pure government THEFT - we work our asses off to keep costs low, so that the Federal Reserve and Fed.gov can print money to STEAL all our efficiency gains, and more, with debased money”
Too many people think businesses work to keep costs high. It’s just the opposite. They realize that there a point that the increase in prices will cause the consumer to abandon their product. Many businesses are reaching that cross-point. To stay in business they have to increase prices. However, if they increase prices they lose more customers thus reducing revenue. It is a lose/lose proposition.