No. That’s a whole other animal however they are likely covering a larger risk pool than ever.Quote:
Originally Posted by Xville
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No. That’s a whole other animal however they are likely covering a larger risk pool than ever.Quote:
Originally Posted by Xville
Yeah, there’s no such thing as an equilibrium price point! :)Quote:
Originally Posted by GoMuskies
I probably know less about national and global economics and the things that impact it than I do about the mating habits of starfish.Quote:
Originally Posted by GoMuskies
I can't claim to know much about macroeconomics either. I'm sure my Xavier economics professor would be ashamed. But a corporation's job is (and has been for much longer than three years) to charge the amount for its products and services that will maximize profits. If there is an environment that allows corporations to raise their prices and increase profits, that's (initially at least) an effect of the macroeconomic environment and not the cause of it. Sure, those price/profits increases will have ripple effects, but corporate officers can't just wake up one day and decided to raise prices and boost profits. If they could, they should be fired, because they should have raised prices earlier.
It isn't that they discovered it, it was that Covid gave them an excuse to jack the prices up at the same time as their competitors without it looking like price fixing. Now companies are slow to reduce their prices as people have got used to paying the higher prices and they are seeing more profit from it.Quote:
Originally Posted by GoMuskies
If a corporation's leadership team suggested a pricing strategy that was expected to reduce their profits, that leadership team should be fired.
Not sure there’s evidence to back that up.Quote:
Originally Posted by STL_XUfan
It is however hard to ignore the effect the record levels of inflation the last 2 years have had on prices. In fact, it’s lazy to blame Corporations for being “all corporationy”.
Just because you lower prices doesn’t mean you lower profits.Quote:
Originally Posted by GoMuskies
Volume/growth strategy.Quote:
Originally Posted by Xville
However I’d imagine most companies have switch to an EBITA model considering the current borrowing rates.
If you find where I said it did, I'll go back and correct myself.Quote:
Originally Posted by Xville