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I own a couple of retail businesses. Through Covid I saw supply chain problems move pricing on the retail side. Now, I'm seeing wholesale prices change week to week on products with little past fluctuation. Some of this can be attributed to unusually high demand for freight as economies re-emerge, and tight labor markets. I fear that these reasons however, are hiding immediate inflation problems being signaled in commodities and by a parabolic monetary supply. What happens when prices increase 30% after existing inventory is depleted?

I own a couple of retail businesses. Through Covid I saw supply chain problems move pricing on the retail side. Now, I'm seeing wholesale prices change week to week on products with little past fluctuation. Some of this can be attributed to unusually high demand for freight as economies re-emerge, and tight labor markets. I fear that these reasons however, are hiding immediate inflation problems being signaled in commodities and by a parabolic monetary supply. What happens when prices increase 30% after existing inventory is depleted?

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[–] 4 pts

Industry I work in we use commodities.

Plastic prices in the last year have gone up almost double.

The steel we use has doubled.

Copper is going up 5-10% every other month.

Biggest issue is availability and fluctuations.

Let’s take Best Buy as an example of what we deal with. You want a particular TV, you go to Beat Buy to get it. They don’t have it, none have it in stock. Can order from manufacture but cannot guarantee when or if it will ship. Okay, well get me one with the same specs. Alright that one is $100 more. Call the wife/end customer/whoever to make sure a change is okay. They approve. You tell Best Buy you will take it but the price went up in the time you made the phone call. They can’t guarantee the price for longer than a few minutes (for what we do it’s 3-4 days on the items we order but same process) Now you are in a situation where you were contracted to give a TV at a price, the price of the TV changed because availability and the customer accepted a change with an expectation to pay $100 more, who pays for that last price increase? This is where it’s getting extremely difficult for small businesses in cut throat industries to continue to operate. It’s difficult for any business to be profitable and competitive with the supply chain broken.

[–] 3 pts

I worked with a bunch of Romanians years ago, right after their run with hyperinflation through the 1990s. That dynamic sounds very similar to the stories they told.

[–] 1 pt

I'm an electrician. A few weeks ago, every time i visited the supply house, i had to ask if they could sell me wire. Now they have all the wire i could need but the price has gone up 400%.