Re:It's not a labor shortage – it's a wage and workers right...
by dagw on Monday September 06, 2021 @10:39AM
(#28434103)
raise prices by a buck a pizza. people will absolutely pay it.
Perhaps in some cases, but far from always. Down the street from there are 3 'cheap' pizza places within a ~5 minute walk from each other, that all server basically identical quality pizza at essentially the same price. If any one of those where to raise their prices people would almost certainly not pay and just go to one of the other places instead.
There is also a 4th place that serves much higher quality pizza and charges 50-100% more than any of the other places as it is. If they where to raise their price by a buck then people would no doubt still pay since the people who go to that place have already proven themselves less price sensitive.
Perhaps in some cases, but far from always. Down the street from there are 3 'cheap' pizza places within a ~5 minute walk from each other, that all server basically identical quality pizza at essentially the same price. If any one of those where to raise their prices people would almost certainly not pay and just go to one of the other places instead.
There is also a 4th place that serves much higher quality pizza and charges 50-100% more than any of the other places as it is. If they where to raise their price by a buck then people would no doubt still pay since the people who go to that place have already proven themselves less price sensitive.