Re:Carrefour puts ‘shrinkflation’ price warnings on food to ...
by JumpCrisscross on Friday September 15, 2023 @01:08PM
(#37526168)
> it's estimated that 50% of the inflation in Europe is due to margin
Is this just constant margins being spun as conspiracy?
Say I have a 10% margin on a $100 product. Costs rise 10%, i.e. to $99. If I want to keep a 10% margin, I raise prices to $110. How much of that price rise was inflation versus margin increase? Will someone now claim that 90% of cost rises were due to inflation and 10% margin? (Keep in mind, too, that inflation is forward looking.)
Put another way, how enviable have manufacturers’ margins in Argentina, Turkey or Zimbabwe been?
Is this just constant margins being spun as conspiracy?
Say I have a 10% margin on a $100 product. Costs rise 10%, i.e. to $99. If I want to keep a 10% margin, I raise prices to $110. How much of that price rise was inflation versus margin increase? Will someone now claim that 90% of cost rises were due to inflation and 10% margin? (Keep in mind, too, that inflation is forward looking.)
Put another way, how enviable have manufacturers’ margins in Argentina, Turkey or Zimbabwe been?