The reason publicly traded companies continually raise prices is the pressure from Wall Street to continually make more money than you did last month, last quarter, last year.
Say you sell 1,000,000 hamburgers and make a 20% profit on it.
Unless you make more money next year, selling that same 1,000,000 hamburgers, Wall Street is going to punish you. They don’t care that you’re profitable.
The reason publicly traded companies continually raise prices is the pressure from Wall Street to continually make more money than you did last month, last quarter, last year.
Say you sell 1,000,000 hamburgers and make a 20% profit on it.
Unless you make more money next year, selling that same 1,000,000 hamburgers, Wall Street is going to punish you. They don’t care that you’re profitable.
You either sell more burgers or raise prices.
Thank Jack Welch and Milton Friedman