Are current business models setup for failure?

[Stryker Ryker 188]

Every year, a company determines how much growth & profit they’ve had that past year. However, a company can’t keep growing & gaining profit every year without raising costs. Eventually, they price out their target audience in the quest of ever improving profits. So how do they keep up with their growth? Raise prices. We are seeing this ALL over America. Just take a look at McDonald’s. 1 meal costs you almost $20 if not that. People that eat McDonald’s aren’t going to be spending that kind of money there. Especially when it’s almost as expensive for places like 5 guys. I just don’t see how this model is sustainable. Seems like we are due for a collapse because everything is going up except wages

[Baker Boy 1,710]

32 minutes ago, Stryker Ryker said:

Every year, a company determines how much growth & profit they’ve had that past year. However, a company can’t keep growing & gaining profit every year without raising costs. Eventually, they price out their target audience in the quest of ever improving profits. So how do they keep up with their growth? Raise prices. We are seeing this ALL over America. Just take a look at McDonald’s. 1 meal costs you almost $20 if not that. People that eat McDonald’s aren’t going to be spending that kind of money there. Especially when it’s almost as expensive for places like 5 guys. I just don’t see how this model is sustainable. Seems like we are due for a collapse because everything is going up except wages

It is called inflation.

The continued raising of the minimum wage and countless government regulations also add to the cost of the product. The current green regulations are crippling our businesses.
 

It’s not the businesses it’s the government.

[Stryker Ryker 188]

10 minutes ago, Baker Boy said:

It is called inflation.

The continued raising of the minimum wage and countless government regulations also add to the cost of the product. The current green regulations are crippling our businesses.
 

It’s not the businesses it’s the government.

I’m not talking about inflation. I’m talking about how every company wants growth & more profits every year. If they don’t have any, they consider a failure. They could make billions in profit & the following year make the exact same thing but be upset & trying to figure out what went wrong. Nothing went wrong but they look at it as failure. Which is fine until you hit a certain point. And say the growth was 3% last year but is only at 2% this year. That’s failure in their eyes. THAT is what I’m talking about. Every year can’t be a record breaking profit year but that’s exactly what companies are doing. If you wanna call it man made inflation then you can do so. But at some point, in the pursuit of record breaking profits every year they’re starting to lose customers cause they’re pricing them out. You REALLY think McDonald’s cost are cause of inflation? A hashbrown used to be 2 for $1. Now it’s a little over $3 for one. That isn’t inflation. That’s them trying to increase profits so they can have another record breaking year. At some point it’s going to fail. 

[Baker Boy 1,710]

7 minutes ago, Stryker Ryker said:

I’m not talking about inflation. I’m talking about how every company wants growth & more profits every year. If they don’t have any, they consider a failure. They could make billions in profit & the following year make the exact same thing but be upset & trying to figure out what went wrong. Nothing went wrong but they look at it as failure. Which is fine until you hit a certain point. And say the growth was 3% last year but is only at 2% this year. That’s failure in their eyes. THAT is what I’m talking about. Every year can’t be a record breaking profit year but that’s exactly what companies are doing. If you wanna call it man made inflation then you can do so. But at some point, in the pursuit of record breaking profits every year they’re starting to lose customers cause they’re pricing them out. You REALLY think McDonald’s cost are cause of inflation? A hashbrown used to be 2 for $1. Now it’s a little over $3 for one. That isn’t inflation. That’s them trying to increase profits so they can have another record breaking year. At some point it’s going to fail. 

You really don’t understand how the economy works do you? I suggest you take a few economic courses, but I don’t think that will help.

[Stryker Ryker 188]

6 minutes ago, Baker Boy said:

You really don’t understand how the economy works do you? I suggest you take a few economic courses, but I don’t think that will help.

You really don’t understand what I’m trying to say do you? Even though I spelled it out so that a fifth grader could I’d highly suggest YOU take an economics course as well as an English course otherwise intelligent conversations that require critical thinking are lost on you like this one is 

[Stryker Ryker 188]

Not that hard to understand. If a company thinks they should have record breaking profits every year & don’t they fire the ppl, lower operating costs, & raise prices so they can get back to it. Sure some has to do with inflation cause some goods are naturally going up. But if that was the case, hashbrowns at McDonald’s would cost $1 for one. NOT $3 (using them as an example). It has zero to do with inflation & 100% to do with the model that if you aren’t growing & having more profit than last year then the business is failing. At some point in the pursuit of profit, they’re going to destroy their business cause no one is going to go there. 

It’s easy to be an ignorant moron like baker boy & just say “oH iTs InFlAtIoN” when that is incorrect. Thought someone here would have an ounce of intelligence but I keep forgetting most of those guys don’t post here anymore & im left with just the retards that love to circle jerk in political threads. Not sure what it is with some ppl here wanting to argue or act like a d1ck every time yall post but it’s getting old & aggravating. Makes yall look like you’re losers in real life & have no friends, family, SO’s, kids, etc.

[The Psychic Observer 498]

Makes sense.  Surprised more people aren't talking about it.  Wouldn't be shocked to see most businesses fail in the next few years 

[weepaws 3,320]

That’s the government plan, it’s to destroy this country inside out.  Agree with the OP, I don’t know how people can keep these business open, while prices go up, McDonald’s is a great way to show that, we have a foster gathering in the winter time at one, to let the kids play together, I usually buy a ice tea, but looking at the menu board and seeing how darn expensive their food is makes it seem impossible for them to be able to lose customers. 

[IGotWorms 4,063]

[Stryker Ryker 188]

1 hour ago, The Psychic Observer said:

Makes sense.  Surprised more people aren't talking about it.  Wouldn't be shocked to see most businesses fail in the next few years 

It came up at work yesterday when a coworker went out for subway & spent $15 just on her sandwich. It would be different if prices were raised JUST for inflation. They actually wouldn’t be that bad. Problem is every company’s business model has it to where if they didn’t do better than the previous year then it’s a failure & they need to recoup what they could’ve had. Which in turn does nothing but destroy their chances at getting profits cause they’re pricing their customers out. Why would I go get low quality, cheap food when going to a restaurant with better quality is just a few dollars more? 

[Gladiators 2,031]

I disagree

[TimHauck 3,291]

Why am I not surprised digby doesn’t understand the concept of elasticity of demand

[cyclone24 1,935]

8 hours ago, Stryker Ryker said:

Every year, a company determines how much growth & profit they’ve had that past year. However, a company can’t keep growing & gaining profit every year without raising costs. Eventually, they price out their target audience in the quest of ever improving profits. So how do they keep up with their growth? Raise prices. We are seeing this ALL over America. Just take a look at McDonald’s. 1 meal costs you almost $20 if not that. People that eat McDonald’s aren’t going to be spending that kind of money there. Especially when it’s almost as expensive for places like 5 guys. I just don’t see how this model is sustainable. Seems like we are due for a collapse because everything is going up except wages

Yeah, but what customers are they pricing out? If they are still hitting the revenue marks, I could argue that they don’t have their prices high enough couldn’t I?

[nobody 2,869]

Raising prices isn't the only way to have growth.

You can grow by expanding and gaining more customers.  You can grow by developing more products.  Those things can be done organically or by acquiring other companies.

 

[TimHauck 3,291]

7 hours ago, Stryker Ryker said:

Sure some has to do with inflation cause some goods are naturally going up…It has zero to do with inflation 

Lol

[Baker Boy 1,710]

21 hours ago, Stryker Ryker said:

It came up at work yesterday when a coworker went out for subway & spent $15 just on her sandwich. It would be different if prices were raised JUST for inflation. They actually wouldn’t be that bad. Problem is every company’s business model has it to where if they didn’t do better than the previous year then it’s a failure & they need to recoup what they could’ve had. Which in turn does nothing but destroy their chances at getting profits cause they’re pricing their customers out. Why would I go get low quality, cheap food when going to a restaurant with better quality is just a few dollars more? 

No, the problem is if you miss your estimates.