What i don’t understand that why the price goes up for finished products, it is already made, raw materials used and manufacturing is paid.
If the store already has 10 TVs in the store, why the price go up?
If you have a given amount of packaged bread already in the store why the price goes up?
Edit1: Lightbulb from many: Restock… You need to restock on current price, if you don’t follow the price you gonna lose money
However the “willing to pay” argument is kind of maddening, because with basic necessities like food “willing to pay” is reversed, controlled by seller and transformed to “have to pay and going to do so”
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Because a store can’t just sell 10 TVs, or 100 loaves of bread and call it good. If they want to stay in business, they need to buy new inventory to replace the stuff they sold.
Let’s say a grocery store buys bread at $0.95 a loaf and sells it at $1. From that $1, they’re going to spend $0.95 to buy another loaf and keep the extra $0.05. This might not sound like a lot, but they sell a lot of loaves so it adds up.
Now, let’s say there’s a natural disaster or a war, and the supply of grain shrinks. The bread makers still need the same amount of grain to make their bread, so they start out-bidding each other to get the available grain. This is an increase in cost that they’re going to pass on to the grocery stores.
Cut back to our grocery store owner/manager, who sees the price of grain going up. They know that this is going to increase the cost of bread to them. Since most of the money they earn from a loaf goes to pay for the next loaf, they must increase their price now so that they will have enough money to buy the more expensive loaves they know are coming.
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