WSJ’s Sharon Terlep explains the role elasticity plays in a company’s decision on whether to raise prices. Photo illustration: Adele MorganAfter lifting prices to new heights, Procter & Gamble Co.
reported lower quarterly profit and declining sales volumes as the rising costs of Tide detergent and other staplesSales volumes fell 6% at P&G —the biggest quarterly drop in years—with declines at each of the company’s five major business units in the three months ended Dec. 31 compared with a year earlier. P&G increased prices by 10% in the period, helping the company report a 5% boost in organic sales, which exclude currency swings and acquisitions.
OK so the price increases were not the news it was the slippage of sales that was the news. Very sly headline.
Joe Biden strikes again.
P&G got way too expensive compared to Unilever and Henkel, so stopped buying their stuff.
First in last out strategy is hurting retail who was going through the inventory crisis in 21