Since there was so much interest, I did the calculation just for fun.
This years increase represents a 16.1% price increase, in the price of
each bag, before sales tax. Feel free to double-check. I think that the
extent of the effective price increase will not be noticed by more
shoppers (which of course, I think is part of the strategy of
implementing it this way). I've typed this the following sentence in
other forums: When our nations corporations "go to war" against it's
citizens, we can be less proud as a nation.
You forgot that you only got 28 bags this time instead of 30. I
computed the change in the price per bag (not the change in the price
per box), which is what we mostly care about. Feel free to double check.
The other things that confounds the comparisons is that there are often
production methodology changes, or subtle changes to the products that may
or may not be noticeable but that do impact the production costs that are
reflected in prices being held the same for longer periods of time.
Regarding trash bags, for example, that might include a different
composition to the material or different features on the bags such as
shorter tying ears. We also cannot ignore price changes by competitors, the
cost of suitable substitutes, and simple supply and demand (the latter which
may be influenced by the product's image as compared to other similar
products) as factors too! Yup... its easy to compare!
Check out a book by James F Lincoln called "Incentive Management".
Written in the 1930's, describes management practices used by Lincoln
Electric to be completive and still be profitable.
One of Lincoln's basic theorems involved cost savings.
Any cost savings derived from a process improvement was to be shared
3 ways. 1/3 to the customer, 1/3 to the employees and 1/3 to the
Lincoln's annual Christmas bonus program was infamous for it's secrecy
bonus amounts greater than one's annual salary were reported.
The point is that the customer shared the wealth of cost reductions.
Was a change of sentiment required to help achieve 8-digit CEO salaries?
It seems like things may no longer be running in accordance with "the
book" you mentioned.
Internet technology at our fingertips, such as is facilitating our
conversation, might be an exception.
It is better to be a CEO than to work for one.
From 1978 to 2013, CEO compensation, inflation-adjusted, increased 937
percent, a rise more than double stock market growth and substantially
greater than the painfully slow 10.2 percent growth in a typical
worker’s compensation over the same period.
The CEO-to-worker compensation ratio was 20-to-1 in 1965 and 29.9-to-1
in 1978, grew to 122.6-to-1 in 1995, peaked at 383.4-to-1 in 2000, and
was 295.9-to-1 in 2013, far higher than it was in the 1960s, 1970s,
1980s, or 1990s.
Thanks. For what it's worth, I'm actually pretty interested in stock
trading. But watching my guesses has kept me on the sideline. My
philosophy boils down to what goes way up is bound to come down a bit,
and vice-versa. But I watched NFLX (NetFlix) go up 45 yesterday in
after-hour trading (thinking that it might be a good quick short, or
opportunity to buy a put), and then it went up another 45 today. Geeze.
Maybe not "exactly", but (hopefully) you get my point. Or even better,
let's just drop it. I don't wish to offend any full time traders or
But it seems like the easiest way to trade is to get into congress,
where you are allowed to trade on inside information (I find this
repugnant). I'll stand up against that if you like.
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