Quote:
Originally Posted by Tim Ayers
So, a few of you here who have posted own your own business. Have you ever raised your prices in order to keep up with salary, inflation, cost of raw materials, shipping? I would certainly hope so.
I have a good friend is one of the top chefs/names in prime steaks. He said, for the first time ever, his cost of shipping is the same as the cost of product.
|
This is the definition of a free market. Costs peculiar to a specific business certainly do play a role in price increases, but need not be isolated to do so. More significant are the overall inflation levels of the economy and the supply and demand of the product in question. Markets also adjust pricing in anticipation of future conditions, such as the movement of home prices in anticipation of changes in mortgage interest rates and availability. It's not a conspiracy, it simply reflects the need to stay competitive in a free market.