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Cheeseweasel

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Everything posted by Cheeseweasel

  1. Truth. Windfalls happen during surging prices depending on who is holding the right inventory at the right time. But I can also point to you the dumpster full of inventory done on speculation that didn't sell. You take the good with the bad.
  2. 99% of the time, you are correct @jimmyjazz and supply/demand smashes any massive fluctuations in the market but Covid was truly a black swan event. It disrupted the supply chain (and thinking) in unmeasurable ways. Think about the first time you flew after 9/11. It was fucking weird. Covid had the same effect on purchasing. It's fucking weird right now.
  3. I don't know how the egg market works, but uncertainty is a bitch. It might have been 10% in the end, but they may have been getting indicators that it was going to be more or longer lasting.
  4. I'd assume that if you are producing less, much of your variable costs (chicken feed, power, etc.) would be reduced so you don't need to make up all of the lost costs.
  5. I'm so glad I'm at the end of my career instead of the beginning.
  6. You are a beating, man. Curious, what do you do for a living?
  7. Yeah, at what point are you killing the other people and using their lungs as carbon monoxide filters?
  8. Here's a different way to think about it. Let's say you manufacture baseballs. You set up your business to produce 1 million baseballs per year by employing enough people to produce that number. You stock enough raw material inventory to produce 3 months worth of balls and continually replenish it. Today you go to work and the global cork supply has been hit by a disease that will cause them to lose a 3 months worth of growth. For the next 3 months, you can continue to produce balls, but in the next three months, you will likely produce minimal amounts (or nothing). If you are smart, you raise your price to cover the lost overhead during that 3 month "down" so you can continue to pay your employees, rent, light bill, etc. knowing that supply/demand will allow you to do it. You can call that "price gouging" if you'd like, but you've also likely saved jobs and kept your business afloat.
  9. That's fair, @troph. Inflation is a complicated creature that impacts everyone. I appreciate everyone's input, but I do get tired of those who simplify it and point the finger of blame at one group (regardless of that group). There are too many levers that cause inflation to boil it down to one point. And when it comes to business management, pricing/costing, and inventory management I get hyperfocused. It's been my life and my area of expertise for 30+ years so I know a thing or two about it. I don't suffer fools who think they know what they are talking about in the same way that you wouldn't if I tried to tell you how simple being a lawyer was. "Oh, just file a few papers, boss a few judges around, and WHAMMO, case dismissed. Easy peasy!" The Ukraine thread is great because Surly has a few experts that know their shit when it comes to the battlefield. On this thread, we don't have that luxury.
  10. Bingo. It's a very selective group (read monopoly) that can "price gouge". The rest of are managing our inventory knowing that the pendulum will swing back hard when inventory needs to be replaced. Anyone who thinks differently is an internet warrior who's never had to deal with the reality.
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