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BA Deere
Honored Advisor

Re: Pizza marketing

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sdholloway56
Senior Advisor

Re: Pizza marketing

If you’ll pay it, fine.

But clearly the price increases are more than the accumulation of cost increases- inputs and labor. They can charge what they want and then make their decision based on volume/margin.

Great insights here, just 180 degrees opposite of what you think.

Everybody used the disruptions to try to expand margins, then it will be up to the market to judge their decisions.

I don’t know about competition for great pizza in Podunk- or how deep consumers’ pockets are there.

But I think I do have an idea about the power of market competition in meat packing, fertilizer, farm equipment, pharmaceutical, consumer products (P&G etc.) and some others will play out- they’ll hold onto a chunk of it.

Should still see SOME market competition come to bear in cars, oil, retail meat margins over time.

Do you guys have anything better to do with your time than sit around being wrong?

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sdholloway56
Senior Advisor

Re: Pizza marketing

If, for example, I could get 50% better margins and only lose 25% in volume.......sure, all day long.

Then I’d get to work on marketing. Probably try to target new customers with discount coupons, hoping I could get them hooked on paying for expensive pizza.

 

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erikjohnson61y
Veteran Advisor

Re: Pizza marketing

Geez, poor SD must not have any friends in the world. Sits in moms basement bitching about some ag people talking about good pizza and the number one problem on people's minds - inflation - after harvest is over and we have a little time on our hands during the holidays.  

Why are liberals the worst people in the world to have any kind of discussion with??  We've got a guy like that at our coffee shop. Ed is ALWAYS mad about something. Has ANYONE on this site ever had SD agree with them about ANYTHING???

Merry Christmas, SD.

k-289
Senior Advisor

Re: Pizza marketing

The  Claw  Back  of  $105,000,000.oo  $everance  from  mickey-donald 's  bigshot  was  interesting  to  observe,  all  the  while , causing  contention  in  how  many  ''' essential '''  employed  day  labors  -  -  -

&   Board  Of  Directors ( arrogance  of  privilege ) grapple  to  invent  excuses of  intent  -   -  -    

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sw363535
Honored Advisor

Re: Pizza marketing

The seeds of social discontent are always in need of replanting.........  And no one can plant them like the tenured

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sdholloway56
Senior Advisor

Re: Pizza marketing

$6 corn is "inflationary", although at the moment it has almost nothing to do with fiscal and monetary circumstances.

Lot of firms- large and small- are testing the waters for the limits of how high they can get away with raising prices- as you would if you could. Only the market and time will tell the tale on that.

But nowhere more so that places where there is excessive market concentration- think meatpacking, fertilizer, pharma, farm equipment. 

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rsbs
Veteran Advisor

Re: Pizza marketing

nutz, if you had passed any econ 101 courses you would understand that $6 corn is a sign of inflation, just like $12000 per acre farmland.

hope this helps.

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k-289
Senior Advisor

Re: Pizza marketing

Maybe  a  hamburger  pizza  would  be  less  expensive  if  those rogue  fat  cattle  would  show  up  in  Washington State - ?  Seeds  of  B  T  O  discontent  -  -  -    

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BA Deere
Honored Advisor

Re: Pizza marketing

I don`t know if businesses are so much seeing how much they can get away with in raising prices,  they`ve "eaten" increased costs on their end for over a year now and are in survival mode.   I still think a lot of people in the workforce didn`t really have to work for economic reasons and Covid made them reassess their lives, so in some industries they just retired early, creating a void in certain sectors.  However, like 2008 meltdown the 401Ks weren`t as valuable as they thought, so early retirements got put on hold.  But look at the antics of the Dow in recent days.  Perhaps in 2022 the gray hairs will come crawling back to their jobs, a 50% correction in the Dow and the other indexes would do nasty things to one`s future plans.

3 years ago we were going broke with sub-$4 corn some of us slower than others, but trajectory wasn`t good.  Still, if you can believe it that $3 corn was buying $10,000 land.  Guy on the other site says 82% of farmland doesn`t have debt, I wouldn`t doubt it, but there`s much more to the story than "$3 corn" .  I still think some farmers are laundering money for the Medellin drug cartel or perhaps this pizza eating, under-achiever didn`t get the memo on how to manage money.  

$6 corn wouldn`t be $6 if the world was awash in corn, regardless of inflation rates.  There was a dime worth of corn in a $4 box of cereal now it`s 20¢.  Corn going from $3 to $6 raised the price of growing a pound of pork 12¢, so if the farmer has any "blame" a 1 lb pork chop shouldn`t be 12¢ higher, I`m not a pork consumer, but I take it that pork chops are much higher in the past year?    

2.7 gallons of ethanol are made from a bushel of corn and it yields 17lbs of DDGs, too many variables for me to make a napkin calculation, but ethanol plant margins are doing quite well, thanks to high priced gas.