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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1) Price Competition. If there are more (willing) buyers than the suppliers, the suppliers can charge more and still sell all they have. As a seller, they’re running a business to maximize profits and should attempt to sell their finished goods at the highest price that would clear their inventory.
2) Ongoing business consideration. As a business, the price sold today has to cover the cost of repurchasing raw materials TODAY. It doesn’t matter if the existing finished goods were produced using lower cost materials, if the business doesn’t obtain revenue sufficient to repurchase new raw materials, then it goes out of business.
Bottom line: businesses don’t sell goods at the lowest price possible.
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