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are price increases sustainable

badbetty
Grafter
Posts: 31
Registered: 25-09-2008

are price increases sustainable

Prices going up - not just with PN's voice/phone stuff but elsewhere in other services too to be fair.
Trouble is, my wages are not going up at all - in fact they are worth less in real terms.
How can it be justified to keep increasing prices when the economy is poor!    I know that sometimes the word 'investment' is used, but if prices go up beyond ordinary folks' means to pay then who buys the service - or by that time is the business so rich it doesn't have to care... i guess so.
Mind you, there are a lot of things I don't understand these days!  ;-)
23 REPLIES
Community Veteran
Posts: 13,920
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Registered: 01-08-2007

Re: are price increases sustainable

It doesn't matter. Poor people are a cash battery. If you don't have the money you're supposed to bust a gut to keep your moral obligation of paying those you owe money to. Those at the top just continue to put up the prices and justify themselves by saying you'll have to work harder, setup a payment plan etc.
Of course that only works for so long and then the workers start suffering health problems, lack of motivation, laziness etc and then decide to go on benefits instead. At the end of the day our survival is not important as long as the rich survive without loss  Roll eyes
Nothing has changed in all the hundreds of years that things are supposed to have improved.
I need a new signature... i'm bored of the old one!
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: are price increases sustainable

@sprite
Can I advise you to do research before posting. If you did you will find the standard of living today is higher now then any decade in the 20th centenary. It may have stagnated or have fallen slightly in the last few years but is still higher than 20th centenary. 
Community Veteran
Posts: 13,920
Thanks: 514
Fixes: 7
Registered: 01-08-2007

Re: are price increases sustainable

Yes it is but the attitudes at the top haven't really improved.
I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 5,336
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Registered: 23-09-2010

Re: are price increases sustainable

Never mind I'm sure the next set of figures will show that inflation has dropped to some unfeasibly low rate.
You're not supposed to notice that some prices seem to have doubled in the last few years.
Just whistle a happy tune and all will be well with the world. Crazy
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: are price increases sustainable

The way I see it, prices are going up because of fuel prices going up.  If a few years ago it cost a company £1,000 to transport goods from point A to point B and now it costs £1,500 then the cost of the goods being carried has to raise by £500, because the price of goods goes up inflation goes up, pretty much the cost of everything goes up so people need more money but we're not getting as much because of the double dip.  That incoming 3p/litre increase is going to further increase the costs of moving goods from point A to point B which, naturally, means the prices are going to have to go up again, but people are going to cut back on travelling because it's getting so expensive and it's a vicious circle.  Truckers went on a demonstration when it was £1/litre, it's around £1.37 a litre now so where are the demonstrations?
Community Veteran
Posts: 5,316
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Registered: 21-03-2011

Re: are price increases sustainable

I think probably the best solution is for the Government to reduce inflation by halving the duty on petrol/diesel. There would of course have to be a corresponding reduction on welfare payments (housing benefit, state pension, etc) and an increase in income tax to avoid any increase in Government borrowing.
Now Zen, but a +Net residue.
itsme
Grafter
Posts: 5,924
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Registered: 07-04-2007

Re: are price increases sustainable

Make you wonder how £pound shops manager it if transport costs are the main cause of inflation.
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: are price increases sustainable

They do it like any other business by reducing the size of their packets.  Interesting programme last week on the three big High Street chains.
itsme
Grafter
Posts: 5,924
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Registered: 07-04-2007

Re: are price increases sustainable

Good thing reducing the size. Save on packaging and able to pack more into the same space. Or do you mean they reduce the weight but keep the package size the same? If so this has nothing to do with the outlets but the manufacturers deceiving the consumer.
kmilburn
Grafter
Posts: 902
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Registered: 30-07-2007

Re: are price increases sustainable

I'ts generally done by reducing weight and via subtle changes to the package so you don't notice  (e.g. keep height/width the same, but reduce the depth slightly).
Also, reducing the size has a negative effect due the amount of wasted space within each pacakge,  thus requiring more room in total than the bulkier products.
nadger
Rising Star
Posts: 4,498
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Registered: 13-04-2007

Re: are price increases sustainable

Quote from: artmo
Interesting programme last week on the three big High Street chains.
That was a good programme.
We were in town ( Leighton Buzzard) yesterday and SWMBO nipped into 99p store ( used to be a Woolworths) and it  was packed which says something.
Tanked up car for trip to France/Belgium tomorrow and unleaded was down 2p/litre at Tesco. Still had to put £45's in tank  Cry
Community Veteran
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Registered: 06-11-2007

Re: are price increases sustainable

There was a very interesting program last week about the 99p shop and th £1 shop...  in one place they have opened next door to each other... !.. was interesting to hear the "regular customers" comments after visiting the new shop... they were well impressed , compared to their previous experience....
as for the size issue... one of them, ( can`t remember which one).... said that reducing the "content" of packages helped to keep the prices down....  for example, ( shown on tv )... childrens coloured felt tip pens or crayons.... originally used to be 40 to a display card... now reduced to about 20... still looks like a bargain, and not really a "repeat" buy.... i.e you wont` really know the difference when you go back next time ( 6 months or more) for another pack...
As for purchase price.... many items are bought in huge quantiites, so the purchase price is less than 50%  of the retail price... so still room to make a profit,.... albeit small, you just multiply that small profit by the high sales volume....
nadger
Rising Star
Posts: 4,498
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Registered: 13-04-2007

Re: are price increases sustainable

One part of programme I really found amusing was when one store started selling top 12 items for 50p each and the other bought all their stock and flogged it for a quid.
Community Veteran
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Registered: 16-02-2009

Re: are price increases sustainable

I regularly shop in the £shops. But I find it can be cheaper to buy the same/similar item somewhere else. e.g. fridge/cooker bulbs - £shop 1 off, home bargains 2 pack for 89p = ok you probably don't need 2 of them but keep a spare handy.
Alternately the different £shops all have slightly different stock so it is not always a case of getting the same thing in all the shops. We only have one £shop here but when I go to Edinburgh I can visit a couple of different ones, so getting the best deals. E.g. £world has a better/nice pet range that £land doesn't (locally anyway).
I watched that program and liked the bit were they rich were complaining about the house prices coming down - then queuing up to get in.  Wink