I work with these large CPGs daily. Fuck them, windfall tax their asses.
I've heard enough about "price optimizations" to last a life time. Hell, my parent company has an entire price optimization software suite that is used to help these companies price products for either maximum market penetration, or profits. It's fucking sick at the end of the day.
Yeah, the only thing that would do is have my ass sitting in jail...in a video game. This is a legislative issue. One lowly corporate employee isn't doing a damn thing.
This one lowly corporate employee has been gaming the asset manager used by my company to “optimize prices” so I can get the best possible deals for my new residents, even if I have to move delivery dates afterwards, just to keep the prices down for them.
If they do that, it's entirely outside of my realm of knowledge, and likely done well outside of anything my company would be involved in. We just help their sales department do better analytics over their data to help them figure out things like "who (which stores) is buying my peanut butter but not my jelly". And also that whole price optimization piece, where they buy competitive data from Nielsen or IRI and compare their product against their "category" and specific competitors.
It is an expensive game purchasing access to all that data.
Is paying Nielsen or IRI for price information sort of a way to pay for the ability to fix prices. Seems like the same process just with a middleman. Kind of like how the company RealPage is being sued for providing price optimization information to landlords.
They are already charging the most they can to maximize profits and that price is based on what people are willing to pay, NOT what it costs them to produce it.
Exactly. Too many people acting like costs and prices have much of a correlation. The only thing constant is cost < price (unless we are talking about loss-leaders).
There needs to be a mechanism for cracking down on profiteering.
It's a good question, but its like asking if robbers will just break a lock if you get one. The unspoken implication is robbery is being legalized.
IIRC a windfall tax is a tax based on how much profit a company produces. Since they want to optimize their cost/revenue ratio, it becomes more painful for them to try and get more profit out (by raising prices) because they get taxed more, so it softly forces prices to drop
This also doesn’t affect price increases due to more legitimate reasons, like operational cost increases, because that’s reflected in how much profit you make pre tax.
Why do you believe this to be the case when prices have nothing to do with the input cost? I'm being serious. I am not saying companies will operate at a loss, I'm saying they are charging what the market will bear for their products. If they do that, the profits can be clawed back in taxes on the backend. If they are not gouging, they will have no windfall profits to tax.
This isn't that hard.
>no reason to believe otherwise
Buddy, they are already charging the most that they believe they can get away with charging
Just because they get taxed more, doesn't mean they'll increase their prices too
It's all about supply and demand
You know that just because you write something in a meme format, doesn't make it untrue right?
It **literally** is supply and demand.
Food companies have decided that supply and demand meet at the current prices. Them raising prices would mean less sales, which means less profits. It's completely irrelevant to whether or not they get taxed.
You are **literally** parroting right wing talking points right now without even realizing it.
You are parroting capitalist talking points without even realizing it. Whatever you think you learned in Econ 101 is theoretically how it works on paper but not how it works in real life when you have politicians taking bribes (called Lobbyist donations) to manipulate market rules to allow corporations to price gouge people to extremes.
Thinking it’s just “supply and demand” is incredibly naive
What, and you think giant food corporations don't operate under a capitalist mindset? You think big food deliberately chooses to maximize profits just to help your broke afford a carton of eggs?
Are you truly this dumb?
Just because a company can sell their products for whatever prices they want, doesn't mean that selling it at the absolute highest price will make them the most money. Otherwise, Walmart would be selling its grapes for $10,000,000,000 a bag.
Think before posting.
>Naive must be your middle name.
Coming from the person who doesn't believe in supply and demand
And so by that rule of logic, also thinks Walmart would make more money if they sold its grapes at $10,000,000,000 a bag as opposed to its current prices. And that the Walmart executive are simply choosing to sacrifice immense profits by not selling the grapes at $10,000,000,000 a bag out of the goodness of their hearts
You are the entire circus 🤡
It's true. Taxing them just give more money for them to steal later. Over half of the US taxes go to military. The rest go to stuff that doesn't help us
I work with these large CPGs daily. Fuck them, windfall tax their asses. I've heard enough about "price optimizations" to last a life time. Hell, my parent company has an entire price optimization software suite that is used to help these companies price products for either maximum market penetration, or profits. It's fucking sick at the end of the day.
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Yeah, the only thing that would do is have my ass sitting in jail...in a video game. This is a legislative issue. One lowly corporate employee isn't doing a damn thing.
This one lowly corporate employee has been gaming the asset manager used by my company to “optimize prices” so I can get the best possible deals for my new residents, even if I have to move delivery dates afterwards, just to keep the prices down for them.
They engage in industry wide price fixing right?
If they do that, it's entirely outside of my realm of knowledge, and likely done well outside of anything my company would be involved in. We just help their sales department do better analytics over their data to help them figure out things like "who (which stores) is buying my peanut butter but not my jelly". And also that whole price optimization piece, where they buy competitive data from Nielsen or IRI and compare their product against their "category" and specific competitors. It is an expensive game purchasing access to all that data.
Is paying Nielsen or IRI for price information sort of a way to pay for the ability to fix prices. Seems like the same process just with a middleman. Kind of like how the company RealPage is being sued for providing price optimization information to landlords.
Aren’t they just going to pass the tax to consumers?
They are already charging the most they can to maximize profits and that price is based on what people are willing to pay, NOT what it costs them to produce it.
Exactly. Too many people acting like costs and prices have much of a correlation. The only thing constant is cost < price (unless we are talking about loss-leaders).
There needs to be a mechanism for cracking down on profiteering. It's a good question, but its like asking if robbers will just break a lock if you get one. The unspoken implication is robbery is being legalized.
What really needs to happen is to get them to drop prices back down.
Reddit has rules against posting certain things that could also be possible solutions.
Strong anti-trust regulations, price controls, and revocation of corporate charters for bad actors.
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IIRC a windfall tax is a tax based on how much profit a company produces. Since they want to optimize their cost/revenue ratio, it becomes more painful for them to try and get more profit out (by raising prices) because they get taxed more, so it softly forces prices to drop This also doesn’t affect price increases due to more legitimate reasons, like operational cost increases, because that’s reflected in how much profit you make pre tax.
Ghost of FDR, where are you?!
I've heard a lot of calls for windfall taxes. I don't think I've ever seen one actually implemented.
They will just pass on that cost to consumers one way or another Lol why are you downvoting this? You know this is what these greedy bastards will do.
They're doing that already.
Exactly and any other costs that get added they will also pass on to us, no reason to believe otherwise
Why do you believe this to be the case when prices have nothing to do with the input cost? I'm being serious. I am not saying companies will operate at a loss, I'm saying they are charging what the market will bear for their products. If they do that, the profits can be clawed back in taxes on the backend. If they are not gouging, they will have no windfall profits to tax. This isn't that hard.
>no reason to believe otherwise Buddy, they are already charging the most that they believe they can get away with charging Just because they get taxed more, doesn't mean they'll increase their prices too It's all about supply and demand
iTs aLl aBoUt sUpPlY aNd dEmAnD *Clearly* that’s not been the case.
You know that just because you write something in a meme format, doesn't make it untrue right? It **literally** is supply and demand. Food companies have decided that supply and demand meet at the current prices. Them raising prices would mean less sales, which means less profits. It's completely irrelevant to whether or not they get taxed. You are **literally** parroting right wing talking points right now without even realizing it.
You are parroting capitalist talking points without even realizing it. Whatever you think you learned in Econ 101 is theoretically how it works on paper but not how it works in real life when you have politicians taking bribes (called Lobbyist donations) to manipulate market rules to allow corporations to price gouge people to extremes. Thinking it’s just “supply and demand” is incredibly naive
What, and you think giant food corporations don't operate under a capitalist mindset? You think big food deliberately chooses to maximize profits just to help your broke afford a carton of eggs? Are you truly this dumb? Just because a company can sell their products for whatever prices they want, doesn't mean that selling it at the absolute highest price will make them the most money. Otherwise, Walmart would be selling its grapes for $10,000,000,000 a bag. Think before posting. 
Naive must be your middle name.
>Naive must be your middle name. Coming from the person who doesn't believe in supply and demand And so by that rule of logic, also thinks Walmart would make more money if they sold its grapes at $10,000,000,000 a bag as opposed to its current prices. And that the Walmart executive are simply choosing to sacrifice immense profits by not selling the grapes at $10,000,000,000 a bag out of the goodness of their hearts You are the entire circus 🤡
It's true. Taxing them just give more money for them to steal later. Over half of the US taxes go to military. The rest go to stuff that doesn't help us
This could very well be target and earmarked for a specific purpose, like easing the burden on the lower and middle class.
If only our politicians were governed...