[tharmas]

Some businesses use that as cover to increase prices even when their costs may not have actually been affected by the price of energy. Never waste an opportunity to put the big squeeze on.

Steadily rising prices will be the norm from now on. What will be interesting to see is how fast the corporate elite figure they can boil the frogs without them noticing too much.

$50.00 hotdog is coming.

[arjie]

Is this of any significance? I would imagine most people are like me: we shop based on quality and price and where we want something on that curve. Whether someone raises the price on me “because of inflation” or “because we want to make more money” is indistinguishable.

A rationale for the price rarely affects my choice. If I don’t want to buy something for a price, explaining that the guy won’t be able to survive without pricing it that high won’t get me to buy it. If I do want to buy something for a price, explaining that a guy is charging a hefty profit won’t get me to not buy it.

The only thing that will get me to buy it or not buy it is if it is at the point on the price/quality frontier where I want it.

[autoexec]

> A rationale for the price rarely affects my choice.

This would make you the exception. Companies are constantly increasing prices to see how much they can charge consumers before they feel cheated and stop buying and/or enough customers get priced out to hurt profits.

Consumers tend to feel ripped off if they think a price increase was due to greed but are way more forgiving if they think the price increase was needed because of something outside of a company's control. That's why companies are quick to tell consumers that rising prices are due to things like fuel prices, bird flu, or supply chain problems.

Of course, that tactic isn't as effective as it used to be since consumers have seen companies using those excuses and feed them lines like "We're all in this together!" while those same companies report skyrocketing profits and they've watched as prices remained high or even increased even after the blamed fuel prices dropped and supply chain issues resolved.

[fluoridation]

You're treating what the consumer believes and what is the case as if they were synonymous. How able is a consumer on the street to judge whether a price increase is legitimate or arbitrary? "Feeling ripped off" sounds more like a post hoc rationalization that's applied when a price is pushed just past the threshold.

[autoexec]

"Feeling ripped off" is the immediate reaction to sticker shock. It takes active messaging from companies to get ahead of that reaction and plant in the mind of the consumer a justification that they'll think is fair. Companies have gotten very good about pushing their narrative to the public via social media, news, and even retail signage. Some companies have just outright lied about the reasons behind their price hikes or about how much they were actually impacted by real events, so what consumers are tricked into believing isn't always the truth.

Consumers typically have an idea of what something is worth though, usually based on previous prices. This isn't a problem when prices increase slowly because for every old person who thinks "What a scam! This used to cost 65 cents and now they want $1!" there is a child who never knew any better and for them the cost was always around $1. When prices increase too much or too quickly however that's when people get upset and assume greed unless they are primed to accept it with some excuse. This is especially true when consumers are struggling with high prices while hearing that the companies raising prices, switching to lower quality ingredients, or charging more while giving less are also making record-breaking profits.

[senordevnyc]

When prices increase too much or too quickly however that's when people get upset and assume greed unless they are primed to accept it with some excuse.

Yeah, and then what do they do? I assume they don't stop buying groceries because they're pissed about the assumed greed. Do you really think people are switching grocery stores because they think Kroger is being greedy, but Safeway is altruistic and just raising their prices because of inflation?

[autoexec]

They still need to buy food, but when the price of something goes up too fast they look for cheaper alternatives to what they normally buy or just stop buying certain things entirely. It's rare the cost for the cost of everything to spike all at the same time. It's happened before though when fuel prices were really high, it happened during the early days of the covid pandemic, and it's happening now with inflation being the excuse.

When the cost of everything goes up like it has now people actually do change their habits and shop at different stores looking for better prices (walmart, aldi, costco) when they have the option.

"More than 8 in 10 Americans changed how they buy groceries last year. They hunted for sales, switched to cheaper brands and stopped buying goods they once considered essential." (https://fooddrinklife.com/inflation-grocery-shopping/)

See also: https://www.savings.com/insights/80-percent-us-adults-cut-ba...

[pstuart]

This cannot be emphasized enough. The rise in egg prices was such a thing. Avian flu was an impact, but not to the degree that egg prices increased. Those producers are reporting record profits.

[uep]

A small number of companies control the meat supply in the United States. If you decide that you don't want to buy that $50 hot dog, you likely won't have many comparable options.

[tharmas]

Agreed, which is one reason (there are others) why restaurants are disappearing.