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So, if a company wants to see a specific profit margin and the costs of goods increases from any of the inputs, then they are faced with a choice, close the business/division/brand, sell of the brand or increase prices.
originally posted by: wanderingman
a reply to: SM2
So, if a company wants to see a specific profit margin and the costs of goods increases from any of the inputs, then they are faced with a choice, close the business/division/brand, sell of the brand or increase prices.
Again, you're glossing over the most obvious thing: Re-examine the profit margin and decrease it to reflect the new cost of doing business. Nobody is mandating that they see YOY profits other than the shareholders and board members. THOSE are the people responsible for inflation.
If you make $.01c after the bills are paid (including your salary) - its still a profit. I'm all for making a buck when you can, but if you're doing it on the backs of your labor force and not paying a living wage - you deserve to fail.
originally posted by: wanderingman
a reply to: SM2
So, if a company wants to see a specific profit margin and the costs of goods increases from any of the inputs, then they are faced with a choice, close the business/division/brand, sell of the brand or increase prices.
Again, you're glossing over the most obvious thing: Re-examine the profit margin and decrease it to reflect the new cost of doing business. Nobody is mandating that they see YOY profits other than the shareholders and board members. THOSE are the people responsible for inflation.
If you make $.01c after the bills are paid (including your salary) - its still a profit. I'm all for making a buck when you can, but if you're doing it on the backs of your labor force and not paying a living wage - you deserve to fail.
originally posted by: Cauliflower
a reply to: tridentblue
Modern economics depends on inflation to drive markets and relieve debt.
Who would buy a house if it wasn't going to appreciate?
You could argue the shallower inflation ride pre 1970's was healthier (but probably not to millennials).
originally posted by: wanderingman
a reply to: SM2
So, if a company wants to see a specific profit margin and the costs of goods increases from any of the inputs, then they are faced with a choice, close the business/division/brand, sell of the brand or increase prices.
Again, you're glossing over the most obvious thing: Re-examine the profit margin and decrease it to reflect the new cost of doing business. Nobody is mandating that they see YOY profits other than the shareholders and board members. THOSE are the people responsible for inflation.
If you make $.01c after the bills are paid (including your salary) - its still a profit. I'm all for making a buck when you can, but if you're doing it on the backs of your labor force and not paying a living wage - you deserve to fail.