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 it will sell for that higher price.
That’s really it.
Like let’s say those 10 TVs are currently selling for $100 each. and because of shortages the store WILL sell all of those. That means they can make $1000 and after than they are done, they can’t get more TV’s if anyone else comes by they have to go “sorry, we don’t have any TV’s” Running out of stock you *could* have sold is basically the worst thing that can happen to a retail company.
But they could raise the price to $120 and STILL sell all of them maybe a few people that would only pay $100 don’t buy but there’s more than 10 people willing to spend $120 on a TV. Now they made $1200 before running out of TVs and having to turn people away.
Not raising the price by $20 basically means they would lose out on $200. That is not a very good business decision.
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