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They simply let their customers know what is coming, and their customers have their own issues with costs and prices, and they already know what’s coming.īut big public companies that everyone knows are in a different ballgame. Small companies are quietly raising prices of goods and services they provide, without media-savvy announcement. I just eat the higher costs.Īll companies are struggling in their own way with higher costs and are weighing or have already implemented price increases.
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The good thing is that WOLF STREET is supported by ads and donations and doesn’t sell anything, and so there are no price increases, and no shrinking or ballooning profit margins. All the costs around them have gone up: The cost of the mugs, the cost of shipping them on a pallet to my global headquarters, the cost of shipping them individually to the final recipients, the costs of the cardboard boxes, the cost of the special filler material that I so lovingly wrap them in. Heck, even the beer mugs I send out as thank-you gifts for generous donations. In my little bailiwick, all the services I need in order to run my WOLF STREET media mogul empire have gone up in price: the costs associated with the dedicated server at a server farm, the costs of the email service that many readers subscribe to, the costs of the broadband service, which doubled…. Everyone I know who has a small business has either already increased prices, or is now planning and implementing price increases. Small companies also face input cost increases, and they raise their prices for goods and services they provide. Other companies use dynamic pricing which changes prices from minute to minute, and from location to location, such as rental cars, hotels, plane tickets, and the like, and those prices have shot up. The largest auto dealer, AutoNation, disclosed monstrous historic per-new-vehicle gross profits. And profit margins have ballooned at automakers and at dealers.
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But what they’re doing is cutting back incentives, and people just pay a whole lot more for new vehicles. It said that “inflation has been higher than we anticipated.” And that has been the universal truth all year.Īutomakers don’t announce price increases during the model year manufacturer’s suggested retail prices, or MSRPs, are announced at the beginning of the model year. Then a few days ago it said that if would accelerate and fatten those price increases because of still rising costs of ingredients, packaging materials, and transportation. Unilever, which makes products across beauty and personal care, home care, and food and drinks, announced price increases in April. This includes Procter & Gamble, Coca-Cola, Kimberly-Clark, General Mills, Unilever, and many others. Polaris, the Minnesota-based manufacturer that makes the Indian Chief motorcycles, a variety of snowmobiles, off-road vehicles, and other vehicles, raised its prices in May in response to higher input costs, and now, a couple of months later, it is again contemplating price increases.īig consumer-products makers have been announcing price increases, and sometimes sequential price increases, since earlier this year. This stuff is now going on everywhere, all the time, at all levels. This is the transcript of my podcast of last Sunday, THE WOLF STREET REPORT. This combo of massive QE, repressed interest rates, huge government stimulus with borrowed money, and raging inflation is new in recent history.