Are Some Businesses Raising Prices Unfairly?

Leann

Leann

Traveler
I know the US is dealing with scorching inflation and shrinkflation (the process of items shrinking in size or quantity, or even sometimes reformulating or reducing quality, while their prices remain the same or increase. https://en.wikipedia.org/wiki/Shrinkflation). But honestly, I think some businesses are raising prices just because they can and the public will accept it.

Case in point, I had a manicure and pedicure two days ago. I have been to this salon before so I'm familiar with the fees they charge for their services. There was a smallish sign up on one wall that stated that they had increased their prices by another 10% (this was after they had already raised them 10% a short while ago). When I went to pay I asked what had gone up in cost so dramatically to necessitate another 10% increase. The woman said that supplies were getting more expensive. So, what used to cost $65 now costs $78 plus tip. Thankfully I had a $50 gift card so my out-of-pocket was only $28 but this is just one example of gouging (in my opinion).

Have you had any similar experiences where you felt that prices had been increased beyond an expected rate?
 

It's going to happen. It's happening with property really bad in my area. If they can ask the price and people (or corporations and investors) buy, then it keeps happening.

I'm far from an expert on gas prices but I've read and heard that they will increase gas when any crisis happens when the gas on hand was manufactured at a lower price. But the price immediately jumps.

Feel free to correct me, without attacking me, if I got this incorrect.
 
Leann said:
But honestly, I think some businesses are raising prices just because they can
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Yes, I agree. And from what I've read on the internet this is typical behavior. It won't last because people will cut their spending and then businesses will need to have sales and such to encourage people to buy. What I read said that when people buy extra now because the price is expected to be higher in the future, that increases demand and reduces supply and then businesses can up their prices just because they can. Ugh.

I was looking at the inflation for the past hundred years, and apparently this current situation isn't all that bad comparatively, and this too shall pass.

I guess I shouldn't have been buying more packages of dates than I need (the price went up a lot at Walmart so I started buying extra at Kroger) because I've contributed to the situation, sorry everybody!
 
yes seen it everywhere here in England this last few weeks. Classic example.. as you will no doubt have read me say that our Petrol and Diesel is at an all time high in price, reaching £1.70 per LITRE for petrol..and more than that for diesel .. last week.. so people were up in arms and rightly so. The chancellor made an announcement in Parliament at the spring budget on Wednesday , that petrol was to be reduced by 5p a litre from 6pm that evening and for at least 12 months.

I was driving mid afternoon when I heard the announcement on the radio and just co-incidentally passing a large supermarket fuel garage which had their prices at £1.69 per litre, so I decided I wouldn't get any fuel until the next day when it would be 5p a litre cheaper.

Instead what happened was the fuel companies immediately after the chancellors announcement RAISED their prices for the next few hours, so by the time 6pm came ..they were back down to the price they were charging earlier in the day... :mad:..but even worse, was that many didn't even pass on the 5p saving to the consumer instead just reducing the price by 2.5p per litre instead of the 5p.. so in essence and in reality, RAISING the price by yet another 2.5p on the litre..
 
Beware, the business world is out to get us but good. Two examples:
1. Bought some Quaker "Harvest Crunch". I noticed that the older box had 510 g but the newer one had 400 g. More space for the expensive air. LOL
2. Checked out the air flight ticket to fly from Winnipeg to Edmonton return. I used several sites and they all quoted me in the area of $1,200 or $1,300 Canadian. My goodness. It was just a while ago that I could fly from Winnipeg to Sydney, Australia via Calgary and LA International and return for around $2,000 if I got a good bargain.

My advice is be stingy and hang on to your wallet because they will try to pry the cash out of you one way or another. I think of that old saying, "A Fool and His Money are quickly parted. By the way, this refers to "her" money too.
 
Leann said:
Are Some Businesses Raising Prices Unfairly?
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No, prices are simply a reflection of supply and demand, nothing fair or unfair about it. Right now the demand for a lot of goods and services has outstripped supply so prices go up.
Leann said:
So, what used to cost $65 now costs $78 plus tip.
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If you and others stopped buying at $78 the prices would drop, but if the shop can get customers to pay $78 you can't blame them for charging it. Just the way business works.

If you could get more from your employer or pension or social security wouldn't you take it? Most people would.

It would take someone with a whole lot more economic expertise than I to say why we are seeing a lot of inflation now, all I can do is speculate. I think a lot of it is driven by the increase in money supply from all the Covid grants coupled with reduced available labor again driven in part by generous Covid handouts. Throw in some supply chain things that were also Covid related and I think you can explain a lot of it. More cash chasing fewer goods and services...
Packerjohn said:
My advice is be stingy and hang on to your wallet because they will try to pry the cash out of you one way or another. I think of that old saying, "A Fool and His Money are quickly parted. By the way, this refers to "her" money too.
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Good advice, if we can slow demand prices will respond.
 
The gas prices are going crazy and in my State our Governor Larry Hogan has at least stepped up for a 30 day period and suspended the gas tax until I believe April 16th.
 
My experiences with Amazon have been excellent. Don't mean to suggest otherwise. But I have seen some game playing on there.
 
Pappy said:
I noticed that yesterday Jon. I was looking at past purchases and most items have gone up a dollar or more.
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oh, that I hadn't noticed. What I have noticed is that products which are in short supply sometimes jump up dramatically.

So, there is a cat food that my cats like.

Regular price would be about $13. I have seen it for $25. And I have also seen crazy prices...like $40 or $50....


I have seen various things like that...real theft. And I barely caught it, because I wasn't paying attention...
 
The market will sort it out.

I don't really believe that a well-run business will charge any more than its customers and competitors allow them to.

I've stopped buying a few things because they don't seem to be a good value for me but it doesn't mean that those higher prices are not legitimate.
 
I really noticed the increased prices at the garden center. Plants that used to be say $4.95 were now $7.95 - others that were $12.95 are now $19.95. Gee, has fertilizer gone up that much?! I just decided not to buy much this year. After all, who likes being ripped off. Think increased prices will automatically make us more "prudent" about what and how much we buy, especially of non necessities.
 
Folks, here in America, what has historically made our economy the strongest in the world is our strong belief and commitment to Free Market Capitalism. In schools they used to teach about this and how it all works, but they stopped some time ago. Do any of you recall a guy named Adam Smith, he lived a long time ago? He talked about the "invisible hand" in economic systems and how it controlled price exploitation through freedom by the masses of choice. (e.g., If you don't like the price or quality of a good or service, you will purchase from someone else or choose not to purchase it at all.) This freedom of choice is the magic that, in the long run forces, companies and producers of goods and services to make good quality and produce it so they can sell it at acceptable prices. The market 'invisible hand' will fix this problem. Unless of course, our government jumps into the market and manipulates prices, capacities, and/or quality.

In theory, you cannot have it both ways, we either have a 'Free Market' or we have a 'Centralized Controlled Market (Socialized)'! In reality today these are never 100% in any market but the closer you get to a Free Market, the better the market operates satisfying all. The closer you get to a Central Controlled Market, the worse the market gets at satisfying the needs of the market. If prices are going up, look to what government is doing to manipulate market(s), and you will find the cause (e.g., Limiting production, putting in price controls, etc.). If prices are good and the economy is improving, look and see what government has stopped doing that is improving the market (e.g., remove tariffs, remove regulations, etc.).

Prices are crazy now because our government has jumped into the world gas and oil markets, not only limiting US Production, but specifying which foreign markets we buy from. This, of course, is driving fuel and energy costs nationwide for all industries, not to mention the cost of feed and fertilizers for farmers. This has been going on now for over a year and it is going to get much worse.
 
Remy said:
It's going to happen. It's happening with property really bad in my area. If they can ask the price and people (or corporations and investors) buy, then it keeps happening.

I'm far from an expert on gas prices but I've read and heard that they will increase gas when any crisis happens when the gas on hand was manufactured at a lower price. But the price immediately jumps.

Feel free to correct me, without attacking me, if I got this incorrect.
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I have to point out that.........Gasoline prices are increasing in MANY countries around the world, not just in the USA. Petroleum is a world wide trade item. The price per barrel floats on a daily basis, just like the price of gold does. The price of gas in the US is not out of line with prices in other first world nations. JImB.
 
jimintoronto said:
I have to point out that.........Gasoline prices are increasing in MANY countries around the world, not just in the USA. Petroleum is a world wide trade item. The price per barrel floats on a daily basis, just like the price of gold does. The price of gas in the US is not out of line with prices in other first world nations. JImB.
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Yep, that's what happens when one of the worlds largest suppliers (USA) was taken out of the mix! The loss of that volume of gas and oil on the supply volume in the world has created a shortage worldwide. Anytime you have a short supply, suppliers have to raise prices to slow demand, lest they run out of supplies all together...basic rule of supply and demand...Economics 101
 
I saw a news report about people who own small businesses and how much their costs have gone up. One lady owned a bakery which suffered during the pandemic and then the supply chain issue. She said costs for the items she needed had gone up so much that it was hard for her to make a profit at all. I don't remember the percentages but I do remember that a 10% increase would not have improved her profit margin.
I do my own hair and nails so the only services I use are Uber and Lyft, which I haven't taken in a couple of months. I added my son to one of my charge accounts and I get notified whenever rides are ordered, including ones my son orders go get to work in another town. I noticed in the last couple of weeks, his rides have increased by about $5 or $6 each time.
 
oldmontana...I am suspect you are poorly educated! I understand your confusion, but as American's we have the freedom to own land, business, etc. and to ask whatever we want for those items...

Also, we elect our government who decides on taxes, tariffs, etc. Again, we have control! This system is not a democracy, where every individual can choose what they want! We are a Constitutional Republic, where the majority decides who gets elected.

It is not a perfect system, but it is the best in the world!
 
there could be many contributing factors .... supplies / labor/ the places rent etc.... usually if asked a person will pick the most believable item.

Yes, some places will raise prices because no one will think twice considering the inflation we are experiencing.
It is the customers choice to not go back or not purchase some items. if this did start to ease my guess is they will be back to "sales" and promotions that basically will be on sale for the former price before it was raised.
I do not see an end soon but i also am not hoarding items because i think it will go up up up.....
 
Nosy Bee-54 said:
It is the way it is! Capitalism is based on exploitation and squeezing every nickel or pence out of consumers.
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Come-on Nosy! A little common sense hear is needed!

If a company over charges for their product, people will stop buying that product or go to someone else who sells it for less. As time goes by that company loses profits and if they do not drop their prices, they will go out of business. That is basic Free Market Economics, and it ALWAYS works.

Unless your elected officials in Government are involved with that company and/or its competitors (Elections Matter). As an example, the more our government gets involved in manipulating our Oil and Gas industries, the more we will pay for gasoline and natural gas. If American oil cannot be used in Ameria, but instead we are forced to use oil from Russia, and other oil producing countries, then our prices go up...that is exactly what is going on now! So instead of blaming the companies, blame our elected politicians....
 

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