Well, companies pass along the increase of prices they have to pay to the consumers. You and me.
They might not pass along the entire amount. They want to find that sweet spot where they can still make as much money as possible on their products without losing too much business.
The bad part is, that the more important the product is to people (food, medication), the more money they can charge.
Luxury goods and semi-luxury goods will see the lowest price increases, because we will just buy less of it.
This is something you can see pretty clearly if you go look at how prices increased during tariffs in the past.
I mean, companies aren't just going to eat this increased cost for them out of the goodness of their hearts.
Well, companies pass along the increase of prices they have to pay to the consumers. You and me.
They might not pass along the entire amount. They want to find that sweet spot where they can still make as much money as possible on their products without losing too much business.
The bad part is, that the more important the product is to people (food, medication), the more money they can charge.
Luxury goods and semi-luxury goods will see the lowest price increases, because we will just buy less of it.
This is something you can see pretty clearly if you go look at how prices increased during tariffs in the past.
I mean, companies aren't just going to eat this increased cost for them out of the goodness of their hearts.
Thank you. And for what it's worth, thus far I have eaten the cost for my customers. My aluminum has risen anywhere from 8-20%. Depending on the type.