Firstly, businesses have to maintain a profit margin in order to survive. That margin takes precedence over actually providing their product or service.
Secondly, public corporations are expected to take that margin and somehow magically increase it year-over-year. The pandemic and inflation was the perfect cover for public supermarket chains’ greed. Across nearly all sectors, the profit margins inflated on top of the input costs.
businesses have to maintain a profit margin in order to survive.
This is quite irrelevant. The only goal of a public company is to bring maximum value to their shareholders. If they think raising prices will bring in more profit they will do it. So if people are paying $10 they made a good move.
Maybe not a good long-term move. But that is much more complicated.
It’s not too complicated.
Firstly, businesses have to maintain a profit margin in order to survive. That margin takes precedence over actually providing their product or service.
Secondly, public corporations are expected to take that margin and somehow magically increase it year-over-year. The pandemic and inflation was the perfect cover for public supermarket chains’ greed. Across nearly all sectors, the profit margins inflated on top of the input costs.
This is quite irrelevant. The only goal of a public company is to bring maximum value to their shareholders. If they think raising prices will bring in more profit they will do it. So if people are paying $10 they made a good move.
Maybe not a good long-term move. But that is much more complicated.