Diablo Dude

All true.

If you have dogs or cats the price increases in pet food and cat litter alone have been absolutely ridiculous.
Dont even get me started on what Frito Lay has done with the price of a bag of potato chips . . .
The price gouging has been absolutely shameful.

ipse dixit

Just like college tuition.

Orca911

You happen to have just hit two markets I know a little bit about. I respectfully disagree - for this reason:

Imagine that you have a manufacturing company that sells inputs to a bag of pet food or chips. your labor costs are 20% of your COGS. In 2019 Amazon and Wal*Mart got behind the $15.00-$20.00/hour living wage that ripples up your entire wage structure -- the tide rises-- for your manufacturing company in middle America this means a 25-30% plus increase in labor cost (before healthcare). Right or wrong its just math.

So imagine you sell $1,000 a year with $200 of labor cost. That labor cost just went up to $260.00. The hypothetical Frito Lay has ground you down to 10% margins which barely cover your investment in equipment. You now either absorb the $60.00 and go out of business/cut head count/or stop investing OR you raise prices 6%. Pepsi's 2022 net margin was also a paltry 10.3%...so they are in the same boat. They can either cut back on investment, cut wages or heads, or raise THIER prices 6% to cover your price increase to cover the wage increases we gave so people can afford a bag of chips.

Inflation. (We don't even need to talk about government stimulus weighted to the the lower quintile of our consumer base and the way that spending wrecks havoc with our money supply and causes....inflation)

This is really basic stuff. Why is anyone surprised, annoyed or blaming - the majority of us voted for this policy and now we can sleep in the bed we made.

Porsche is dealing with the same issues with pretty full transparency on their costs and revenue. I am thankful they are doing what they need to do to build a high quality product.

usctrojanGT3

And medical costs and services and utility costs and on and on and on....

mrjbb7

I wonder if the increase in prices for MY24 suddenly make MY22 and MY23 more appealing to people? Or used Porsche prices will hold their values better as demand increases for them over newer vehicles with a higher price tag for the same options. As the base price for new cars increase, there has to (in my mind) be a correlation between rising base prices and used car prices for the previous few years as there are some who will opt out of spending an extra 15k on a new Cayenne (i.e.) and purchase a Certified Pre-Owned MY22/23 with the same options for 20k+ less with identical options.

Just a thought, would be interesting to see how rising base car prices affect the lightly used car market of the corresponding brand. For high priced tag Porsches Turbo's and especially GT cars, that 10% increase is negligible IMO, though I'd hate to feel like I'm being taken advantage of.

shrimp money

I just received my homeowners insurance renewal; increase of 31% from last year.
l’vee never even made a claim before.

WenigerAberBeser

mine was up 92% from 2 years ago.

911

Sorry for the delay. It's a MY 2024 with a Build Date of 9/1/23.

Diablo Dude

Sorry, but I didnt vote for a moron named Jerome Powell or the guy that originally appointed him who had big time buyer's remorse.
And recall that Powell didnt finally do a mea-culpa on his "inflation is transient" narrative until Dec. 2021.
By then, CPI was running at 7.0%

Even then, he continued with QE (tapered) and didnt start raising rates until March 2022.
And the first increase was a paltry 25 basis points.
Moron.

Orca911

You raise an excellent point!