How Companies Raise Prices Without Raising Prices

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Companies hope that by making price increases hard to see, they can escape notice and avoid a customer backlash

The demand curve imposes its tyranny on every business. Raise prices and sales will begin to falter. Cut prices and customers will flock to you. It’s usually either higher sales or higher profit.

The holy grail of pricing strategy is in finding ways to circumvent this seemingly ironclad economic law, to raise prices without losing sales. That becomes even more crucial at times like now, when input costs are increasing quickly, and raising prices is necessary just to keep the business running.

 

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This is the 'inflation' we are seeing right now. Corporations know that they can deceptively invoke the 'supply chain problem' and the 'labor shortage' (which is really just the result of low wages) to rationalize price increases they would have pushed anyway.

In which case, they've been doing it for years.

You mean like putting sugar in 4 lb pkgs instead of 5 lb pkgs? For the same price?

good

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They've been doing that for years. Coffee used to be sold by the pound. Now its 12 oz.

This is nothing new

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Except that we DO see it!

Remember when Soda was 20oz…me too Also known as 15.5% less soda hiddeninflation

I went to Kroger to buy some bacon and the price was a dollar higher than the previous week ha,ha,ha,ha !!

Those companies are just been dishonest then...the purpose of commerce is for sellers to be truthful about what they're offering and that includes the price.

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