This is why the ACTU has launched a Price Gouging Inquiry. Essential food items up 40%. When companies price gouge they push inflation higher, the Greed-price spiral in action https://www.abc.net.au/news/2023-08-22/food-price-groceries-rise-dairy-frozen-tinned-coles-woolworths/102755276 - ThreadSky

sallymcmanus.bsky.social • 557 days ago

This is why the ACTU has launched a Price Gouging Inquiry. Essential food items up 40%. When companies price gouge they push inflation higher, the Greed-price spiral in action
https://www.abc.net.au/news/2023-08-22/food-price-groceries-rise-dairy-frozen-tinned-coles-woolworths/102755276

Comments

bniel.bsky.social•106 days ago

Price gouging seems to occur most when there is a lack of competition. Companies found guilty of price gouging should be subjected to increased competition. E.g. Government support for a new supermarket chain to break up the duopoly of Woolworths and Coles.

iggy0648.bsky.social•98 days ago

If there's no competition, why does Coles settle for a net profit margin of 2.58% ? Why not push it up to 25% ? They could just increase the price of everything in the shop by 20% couldn't they? . What's stopping them?

bniel.bsky.social•98 days ago

They can only push the prices to the amount people can afford. Push it too high and they would get diminished returns. (It's like OPEC with oil). But in markets where there is more competition, there is greater incentive to lower prices.

iggy0648.bsky.social•98 days ago

Their net profit margin is 2.58% What should they reduce it to, do you think? (That means if your shopping trolley is $400, they make around $10 net profit.)

bniel.bsky.social•98 days ago

Firstly, my argument was about price gouging as a whole; not limited to the instance of Coles. Your argument seems to be that Coles is simply passing on costs. Maybe they are?; although there are lots of reasons why Coles' operational costs went up in 2024.

iggy0648.bsky.social•97 days ago

My argument is that whatever they do behind the scenes, their profit on $400 basket is $10. What would you be happy with? $5, $2?

rollsouth.bsky.social•556 days ago

And yet we’re told it’s wages? Wouldn’t mind a 40% wage increase.

greg-greenwood.bsky.social•105 days ago

The ABC radio had some bloke on today, rabbiting on about wage increases pushing up inflation! We never catch up to what the inflation rate is. We always go backwards!

iggy0648.bsky.social•98 days ago

Net profit margin 2.58%

Comments

Posting Rules

Reply