Welcome home, fellow Gator.

The Gator Nation's oldest and most active insider community
Join today!
  1. Hi there... Can you please quickly check to make sure your email address is up to date here? Just in case we need to reach out to you or you lose your password. Muchero thanks!

Greedflation

Discussion in 'Too Hot for Swamp Gas' started by gatorchamps960608, Dec 15, 2023.

  1. NavyGator93

    NavyGator93 GC Hall of Fame

    1,963
    759
    2,663
    Dec 4, 2015
    Georgia
    It was yoga mat material, believe it or not.
    Again, I def don't eat chicken but when I did, chic-fil-a was way better than subway IMHO.
     
    • Agree Agree x 1
  2. antny1

    antny1 GC Hall of Fame

    5,466
    2,849
    2,698
    Dec 3, 2019
    In my opinion the publix sub cult started in the 90s when subs were ridiculously inexpensive and still loaded with meat and veggies. They really used to be a great value but I agree now. They are solid but not worthy of the crazy following they have now.
     
    • Agree Agree x 1
  3. l_boy

    l_boy 5500

    13,024
    1,742
    3,268
    Jan 6, 2009
    I understand the concept of elasticities. Essentially you are saying companies should price at some other point than the intersection of the supply and demand curves, which can potentially lead to stock outs. If supply decreases, in the short term, for such reasons as pandemic constraints, and demand increases, due to government stimulus, the resulting equilibrium price is going to increase. You are suggesting they should not price at the efficient market price, which would be a dereliction of duty towards the shareholder-owners.

    It is odd you use the concept of elasticity to support steady prices. If the demand is inelastic small supply movements cause big price swings, which can easily be seen in the price of gas. So short term inelasticity should cause price hikes and longer term elasticity lead to lower prices. So the market is working exactly like it is supposed to.
     
    Last edited: Aug 24, 2024
    • Agree Agree x 1
  4. gatorchamps960608

    gatorchamps960608 GC Hall of Fame

    4,520
    942
    2,463
    Jul 4, 2020
    And every time I go shopping at Publix, it makes it clear you don't understand greedflation and how economics is irrelevant when bad actors subvert the system.
     
  5. l_boy

    l_boy 5500

    13,024
    1,742
    3,268
    Jan 6, 2009
    You don’t have to shop at Publix. There are places that are cheaper. You seem to demand a premium experience but aren’t willing to pay for it.
     
    • Winner Winner x 1
  6. BLING

    BLING GC Hall of Fame

    8,948
    882
    2,843
    Apr 16, 2007
    Subway is notoriously one of the cheapest franchises to get into, they basically have no standards and don’t care so long as people pay franchise fees and buy their marketing/branded materials.

    As far as the private equity dropping the $5 footlong and driving prices to $14, not sure I’d blame that aspect as franchises were probably getting squeezed by the $5 price point anyway. Unless they did something else like raise the franchise fees or commitments, which could also be true apart from that key promotional offer. Ultimately there’s a lot of competition out there and Subway is bottom of the barrel on quality. Their only real selling point for basically their entire existence has been convenience, and assuming they are still a cheap franchise to get into today that would still allow them into locations other franchises might not go.
     
    Last edited: Aug 24, 2024
    • Informative Informative x 1
  7. rivergator

    rivergator Too Hot Mod Moderator VIP Member

    35,670
    1,793
    2,258
    Apr 8, 2007
    I'm not that hard on them. One reason there are so many is that they can go anywhere because they don't fry. And that required a much more complex vent system, etc. I guess they've started slicing meat to order a few years ago. I think lots of states have minimum age to operate a slicer. So it use to have that restriction.
     
  8. gatorchamps960608

    gatorchamps960608 GC Hall of Fame

    4,520
    942
    2,463
    Jul 4, 2020
    We do actually but you can't get everything at those places you can at Publix. And while they used to be 20-30% higher on some items than the competition, they are now 40-60% higher on them for no good reason.
     
    • Agree Agree x 1
  9. gatorchamps960608

    gatorchamps960608 GC Hall of Fame

    4,520
    942
    2,463
    Jul 4, 2020
    The $5 thing was quite a while ago. They were $6-$8+ before this $14 madness.

    As for those praising their food, most of the cold cuts are made from turkey and then flavoring is added to make it taste like salami, pepperoni, etc. They were sued in another country for having no part of any tuna fish in their tuna fish subs.
     
    • Informative Informative x 2
  10. BLING

    BLING GC Hall of Fame

    8,948
    882
    2,843
    Apr 16, 2007
    I probably haven’t actually tried a Subway sub for at least 20 years lol. Yeah, their quality was never particularly good in the first place. Weren’t they also one of the fast food places with “yoga mat material” in their bread?

    Indeed they were.

    Subway Wasn’t the Only Chain to Use the ‘Yoga Mat Chemical’ in Its Bread
     
  11. Gatorrick22

    Gatorrick22 GC Hall of Fame

    89,009
    26,839
    4,613
    Apr 3, 2007
    I wonder what the few people on the top rung of a communist country would do in their (greedy business people's situation) place. Nothing, because they have nothing extra to sell and no one ever even makes money except for the few at the top... and their cronies.
     
  12. 108

    108 Premium Member

    18,109
    1,224
    803
    Apr 3, 2007
    NYC
    Bump

     
    • Informative Informative x 3
    • Winner Winner x 2
    • Like Like x 1
  13. antny1

    antny1 GC Hall of Fame

    5,466
    2,849
    2,698
    Dec 3, 2019
    Coca Cola admitted openly they wouldn't change their pricing until they saw consumer behavior change. They initially blamed increases on aluminum shortages but my beer barely went up in comparison and off brand soda is still half the price of Coke.

    Now I think that's their prerogative to do so in their case because soda isn't a necessity and if people choose to be slaves to their habits then so be it but my wife and I have simply stopped buying it along with a number of other things we don't see value in. And while inflation sucks, we are doing much better than many others despite not making huge salaries. Our pay has kept up with inflation although obviously not as much as we'd like and retirements are doing great after years of living modestly and investing.

    People need to change their buying habits.
     
    Last edited: Aug 28, 2024
    • Agree Agree x 2
    • Winner Winner x 1
  14. l_boy

    l_boy 5500

    13,024
    1,742
    3,268
    Jan 6, 2009
    Kroger Annual Net Income
    (Millions of US $)

    2024 $2,164
    2023 $2,244
    2022 $1,655
    2021 $2,585
    2020 $1,659
    2019 $3,110
    2018 $1,907
    2017 $1,975
    2016 $2,039
    2015 $1,728
    2014 $1,519
    2013 $1,497

    Someone explain to me how this is greedflation.
     
  15. channingcrowderhungry

    channingcrowderhungry Premium Member

    9,252
    2,085
    3,013
    Apr 3, 2007
    Bottom of a pint glass
    I'm not here to defend or admonish Kroger. But net income isn't going to be a good indicator. If they gave massive bonuses to executives, or something like that it, it would not show up on their net income. So they could be price gouging, making shitloads of money, and just moving it around before it hits their bottom line. No clue unless you dive deeper into the numbers.
     
    • Like Like x 1
  16. l_boy

    l_boy 5500

    13,024
    1,742
    3,268
    Jan 6, 2009
    I’d be shocked if bonuses were so high that it materially affected financial results.
     
    • Winner Winner x 2
  17. gatorpa

    gatorpa GC Hall of Fame

    11,907
    1,168
    698
    Sep 5, 2010
    East Coast of FL
    Go to Aldi, Super Walmart, Super target and avoid Publix if you think they are screwing you.
    Publix isn’t subverting anything they are creating a better shopping experience and people are willing to pay for it.

    It’s like comparing the price you pay for a steak at Ruth Chris and Sizzler.
     
    • Agree Agree x 1
  18. vaxcardinal

    vaxcardinal GC Hall of Fame

    7,640
    1,133
    2,043
    Apr 8, 2007
    Seems like their income far exceeds any non-profits I know of
     
  19. gatorpa

    gatorpa GC Hall of Fame

    11,907
    1,168
    698
    Sep 5, 2010
    East Coast of FL
    On that large a scale. Very unlikely.
     
  20. channingcrowderhungry

    channingcrowderhungry Premium Member

    9,252
    2,085
    3,013
    Apr 3, 2007
    Bottom of a pint glass
    True. I was just saying in general. There would be better indicators than just net income.