Quote:
Originally Posted by TheDoc
I think... if that raw material costs everyone more, then it's just inflation, something we can define as a direct cause, like the cost of gas going up. Hyper inflation is like our bread costing us $2-$5 and growing, when it sells for $.50 in other places around the world, and holds for the most part.
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Have you bought a loaf of bread lately?
From my vantage point,these historic increases in materiel costs is a short term setback. We are forced to raise our prices. In 45-60 days our receivables will begin to turn those price increases. However, the longer view for the consumer isn't as easy to solve.
Just a few days ago our purchasing manager handed me a memo he received from a supplier in Ningbo,China and they are announcing a 30% price hike in the items we purchase. We have been importing items from China for nearly a decade. This is the first time there has been a double-digit increase on a 6 month blanket order.