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Tafkam Hokie
Joined: 10/07/1999
Posts: 40,227
Likes: 21,984
Tafkam Hokie
Founder Subscriber

While I get what you are saying, "price gouging" is a weird term.

Any business has a duty to their ownership to maximize profits as legally and ethically as possible. That includes finding the price point for their products that balances supply and demand to get them the most profit. Too low a price and you may sell a ton, but you risk selling more than you can make and not optimizing your profit. Too high a price and customers walk away and look for alternatives. They need to find the price that is between too low and too high that optimizes profit based on how elastic the demand is. The point is, their duty is not to find the lowest price possible that still makes an "acceptable" profit (whatever that is, and whoever gets to decide that that is). Their duty is to find the right price that optimizes profit. And yes, that price will be too high for some of their potential customers. Is that really price gouging? Many companies found the demand for their product was less elastic than they thought. Increases in price did not materially affect their sales volume. So why not leave prices higher? Sure, some things really are tough for consumers to change their consumption habits, and there is a "meanness" to high prices (energy, housing, and medical care immediately come to mind). But something like grocery store prices are more under consumer control than we think. If a price gets too high, don't grumble about it, instead don't buy it. When companies find they can't sell products at that price point, prices will come down. Drink more tap water, buy store brands, cook more meals instead of buying packaged foods. We have the power to drive prices down. It doesn't happen overnight, but it does happen.
Posted: 08/14/2024 at 12:05 PM ET
(In response to this post by NokieHokie)

Thread Replies (72)

Full Thread →
Inflation is insane. Just one more example
hokiepro • 08/14/24 07:49 AM ET
Free refills?**
CrystalCoveHokie • 08/14/24 04:24 PM ET
If you dine in. Yes.
hokiepro • 08/14/24 04:27 PM ET
Was there a tipping option as well?**
CrystalCoveHokie • 08/14/24 04:29 PM ET
I've found at Subway if you pay with the app, you aren't prompted for a tip
Tafkam Hokie • 08/14/24 04:44 PM ET
lol not yet **
hokiepro • 08/14/24 04:33 PM ET
Wow, this thread sure inflated since I last refreshed a few hours ago!**
pburg_hokie • 08/14/24 01:06 PM ET
Or is it supply and demand? Pretty sure they wouldn't sell it for that
UTPr0sim • 08/14/24 10:42 AM ET
High/equal demand for lower supply (higher supply costs) drives inflation
hokiepro • 08/14/24 03:13 PM ET
Well, people pay it, so that's what the price is.
Chris ColemanAdmin • 08/14/24 10:33 AM ET
I’m stopping. It’s part of my AM routine as I’m not a coffee drinker
hokiepro • 08/14/24 02:04 PM ET
In this specific case, I think it's different
Tafkam Hokie • 08/14/24 11:37 AM ET
Correct. Has less to do with inflation...and everything to do with...
great2bahokie • 08/14/24 11:08 AM ET
I read an article yesterday about how consumer behavior is blunting
Late 80s Hokie • 08/14/24 10:49 AM ET
Wish I could get paid for all the times I've explained supply and demand to
Hokie CPA • 08/14/24 10:41 AM ET
People pay for habits. McDonald’s has increased prices
hokiepro • 08/14/24 03:11 PM ET
How much was the trip there?**
MEHOKIE • 08/14/24 10:01 AM ET
$0; it’s on my way. **
hokiepro • 08/14/24 01:59 PM ET
Not inflation. Corporate greed.
Stork • 08/14/24 09:30 AM ET
To quote the Miller Lite guy - It is both It is both It is both!**
OrlandoHokie • 08/14/24 10:44 AM ET
It’s definitely a combination of a number of factors.
HokieHam • 08/14/24 12:42 PM ET
BINGO!**
NokieHokie • 08/14/24 10:34 AM ET
Inflation caused the increase, greed keeps prices from coming back down.**
HokieNoVA • 08/14/24 09:46 AM ET
Wrong. The prices were raised above the rate of inflation. Was extra profit**
NokieHokie • 08/14/24 10:35 AM ET
Meh, maybe if you're using the government's phony inflation rate.**
HokieNoVA • 08/14/24 11:32 AM ET
Nope. It was corporate price gouging.**
NokieHokie • 08/14/24 11:35 AM ET
While I get what you are saying, "price gouging" is a weird term. ◄
Tafkam Hokie • 08/14/24 12:05 PM ET
I don't disagree. My only point was it wasn't "just" inflation. Prices went
NokieHokie • 08/14/24 12:07 PM ET
Of course - price increases, particularly in FF are mostly labor now**
RTFC • 08/14/24 12:09 PM ET
Or profit.**
NokieHokie • 08/14/24 12:12 PM ET
Are you suggesting we legislate a biased morality with respect to
RTFC • 08/14/24 01:08 PM ET
Interesting you use the example of price hikes during a hurricane
Tafkam Hokie • 08/14/24 02:27 PM ET
I was really thinking in the
RTFC • 08/14/24 04:43 PM ET
Nope. Just pointing out inflation was not just rising costs.**
NokieHokie • 08/14/24 01:09 PM ET
Fair.
RTFC • 08/14/24 01:42 PM ET
You can argue the semantics all you want. I think it particularly applies
NokieHokie • 08/14/24 01:45 PM ET
Not semantics - those were your words quoted
RTFC • 08/14/24 01:55 PM ET
Oh it's capitalism fo sho.**
NokieHokie • 08/14/24 02:01 PM ET
Lordy. **
RoswellGAHokie • 08/14/24 09:45 AM ET
I go to the drive thru almost every time I go through Marathon
Coach McGuirk • 08/14/24 08:58 AM ET
Fast food in general has gone nuts....
JoesterVT • 08/14/24 09:15 AM ET
BBQ prices are out of control too, at least near me
HokieNoVA • 08/14/24 09:27 AM ET
Mission BBQ is good and lots of meat. At least $20+.
TomTurkey • 08/14/24 11:19 AM ET
Yep. Took my Dad to the Cburg Mission Bbq today. He only ordered a pork Bbq
BackInTheBurg • 08/14/24 01:35 PM ET
We went to 5 Guys a couple weeks ago, 2 little bacon cheeseburgers 1 medium
santafe • 08/14/24 02:19 PM ET
I had a burger and two beers at Sharkey's on Saturday and it was similar.
Chris ColemanAdmin • 08/14/24 11:11 AM ET
Try going out with a family instead of just yourself.
Tafkam Hokie • 08/14/24 12:12 PM ET
Yep. Glad I never had kids. That would be waaaay too expensive.
Chris ColemanAdmin • 08/14/24 12:15 PM ET
There’s still time, CC…there’s still time **
BackInTheBurg • 08/14/24 01:17 PM ET
Same, bro. Same.**
NokieHokie • 08/14/24 12:24 PM ET
You realize you just cursed yourself to live to age 99?**
Tafkam Hokie • 08/14/24 12:19 PM ET
Well, my grandma (mom's mom) lived to be 101.
Chris ColemanAdmin • 08/14/24 12:25 PM ET
BBQ is funny to me.
hokiehunter07 • 08/14/24 09:38 AM ET
It's not the raw material costs...
RTFC • 08/14/24 12:04 PM ET
you can smoke 30 pounds of butt with $5 worth of pellets?
JoesterVT • 08/14/24 10:36 AM ET
it tastes like $hit- but that's why it lasts so long- my charcoal -
bigbadbird • 08/14/24 10:47 AM ET
funny haha or funny queer?**
bigbadbird • 08/14/24 10:30 AM ET
Sausage burrito - was $1, now $2.24**
TomTurkey • 08/14/24 08:45 AM ET
Never sausage an increase**
MEHOKIE • 08/14/24 10:07 AM ET
Pedro says HELLO! **
Burruss Writer • 08/14/24 11:56 AM ET
do they make you pay before they hand it to you?**
bigbadbird • 08/14/24 08:24 AM ET
Another example: Publix brand soda.
MP4VT2004 • 08/14/24 08:21 AM ET
And don't even get me started on shrinkflation...
JoesterVT • 08/14/24 08:34 AM ET
Oreo cookies!
SteveInBaltimore • 08/14/24 11:36 AM ET
Stepson picked up a bag of Oreos to take with us on vacation last week
Tafkam Hokie • 08/14/24 11:39 AM ET
TWSS**
bigbadbird • 08/14/24 08:36 AM ET
Note that I've found some inconsistency by franchisee on the drink prices
Late 80s Hokie • 08/14/24 08:17 AM ET
I have run into that only recently.
MP4VT2004 • 08/14/24 08:32 AM ET
If you aren't using the apps for fast food drive thru
hoosnowahokie • 08/14/24 08:13 AM ET
Use the app…got a free sausage egg McMuffin and expected to pay
hokiepro • 08/14/24 09:46 AM ET
eh...That $1 deal was a promo. Large drinks were a couple bucks before that
JoesterVT • 08/14/24 08:03 AM ET
$1 tea was a promo? Tea at McDonald's was $1 for as long as I can remember.
MP4VT2004 • 08/14/24 08:18 AM ET
Don't know about "recently"
SteveInBaltimore • 08/14/24 11:54 AM ET