Civilized said:caryking said:hokiewolf said:
Good for them, not every company is going to be able to do that though.
I'm not eating a 5% increase in door security devices and fire alarm devices, I'm just increasing my estimate.
Hokie, that's the company the employs me! BTW, yes, every company can do that. We had a will, then we made a way.
where do you guys fit?
No, every company very clearly cannot do that.
The companies that can and will are fortunate and are operating on higher margins than agriculture, basic manufacturing, commoditized retail, and many other lower-margin industries. Luxury goods, specialized tech, others have more cushion.
My electrician that runs two three man crews in a competitive labor landscape isn't eating copper price increases. He's just not. He can't. He doesn't have the size or the margin. There are thousands of other companies like him that can't or won't.
This argument about "good companies will eat costs and bad companies won't" is untethered from economic and practical realities.
Good companies offset the costs and avoid passing them to the customer. Good for a lot of reasons, but one is they are thinking long term. They offset cots by eliminating waste. I know your company has no waste but most have over 80% of what they do as waste. Lazy companies just pass it on to the consumer. The consumer is also lazy by accepting the additional price.
Want to talk about economic realities, both you and Hokie said that inflation had not increased due to companies stock piling inventory. Deep dive into that. What you both are saying is that suppliers were able to increase output basically overnight meaning they had a lot more "Supply". Basic economics is based on supply and demand. If supply is high prices should decrease. Meaning that the supply (capacity) being there should mean we are paying more than we should for products.