Magico Pricing

[Michaels HiFi]

It’s very simple yet so complex for some to grasp because tax cuts and low interest rates mean “free money”, never mind the artificial nature. And in the long run, it costs many times more.

I didn't realize being given "permission" through tax cuts (you mean "lowering to a more reasonable rate") to keep MY MONEY that I EARNED ON MY OWN by working my ass off should be considered "free" money. Funny how others think they are owed my property/money simply buy their mere existence and desire to waste it.

 

[a.wayne]

Yup. That's why people have effectively been going backwards in real wages the last 2.5 years - their raises can't keep up with the inflation.

Good news is you can do well in the used market. I just sold a bicycle I bought 3 years ago for exactly what I paid for it as it now sells for $1500 more than when I bought it.

Actually last 30 yrs

 

[a.wayne]

Really Mike?

What is the inflation rate in the US last 10 years?
US monthly inflation rate: 2012 – 2023

The average inflation rate for the past 10 years is 2.65%. The Federal Reserve sets target inflation at 2% for medium term economic stability.

Those numbers are total fiction ...!

 

[Michaels HiFi]

Actually last 30 yrs

Per Axios for the year 2019:

"Wages for nonsupervisory employees — who make up 82% of the workforce — are rising at the fastest rate in more than a decade, the Wall Street Journal reports.

Why it matters: It indicates that the benefits of a tightening labor market and a time of historically low unemployment rates are finally being passed along to most workers.

The big picture: Workers at the bottom of the pay scale have been feeling positive effects on their wages at the end of 2019 — especially when compared to those at the top.

Pay rates the bottom 25% of wage earners rose 4.5% in November from a year earlier, while wages for the top 25% of earners rose only 2.9%, per data from the Federal Reserve Bank of Atlanta.
The bank also found that the rate of pay rises for low-skilled workers matched those for high-skilled workers last month for the first time since 2010."

Inflation rate in 2019 was 1.81%. Funny how all those tax cuts didn't create real inflation of 30% like we see today. Remember what the most terrifying 9 worlds in the English language are.

 

[XV-1]

A 10 year average has nothing to do with current realities, or in this case, the past 24 months. The past two years inflation has gone from 1.5% to 8%. The CPI average has risen nearly 13% in the past 2 years. Butter and Eggs have risen 51% and 54% respectively. Bread is up 23%. Must be all those greedy farmers huh? They’re in cahoots with those audio manufacturers. Bread, butter, eggs and speakers!

All raw material costs, including aluminum has sky rocketed. Add to this wage increases. Admittedly, they are lagging inflation as a whole, but we were seeing 8% increases in wages, something unheard of 2, 5 or 10 years ago.

The bright side? I think inflation fears are beginning to ease as its meteoric rise has begun to ease. But the Skelton lurking in the closet is interest rates. It has literally halted housing sales. We need interest rates back down around 4% or a wee bit lower.


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Mike. I 100% agree that inflation has nothing to do with Wilson, Magico and co jacking their prices up to cope with ever decreasing volumes. They put their prices up when the globe had deflation.

large increases in eggs costs us maybe 60 cents. With Wilson and Magico we are talking about 10's of thousands of $$. Assuming dealer margins stay the same, increased profit with increased prices.

so much for more efficient and effective manufacturing.

 

[XV-1]

Those numbers are total fiction ...!

US govt fiction?

or do we have to rely on China and co to continually reduce prices due to good manufacturing vs US manufacturing?