As a business operator who went through the massive cost increases of the past few years, I have to disagree. Just in one year, we saw various increases from 10-50% with some items completely unavailable or doubling or tripling in price, and our labor costs exploded by 25%, in one year. Labor cost are not just wages, for about 40% of our overall labor costs are related to benefits that include various required insurances, it takes 10 insurances to operate my business, new state required minimum paid sick leave, new federal and state mandated OSHA infection control requirements, routine infection control supplies, routine Covid testing, a full time infection control specialist, all insurances saw double digit cost increases, etc, etc, etc, and everything under the sun went up in price and has not stopped.So primers and Alliant have increased now by what percentage over the last 4 years? There is no way you convince me that material and labor costs has created theses increases. You can add in transportation costs and explain a portion of increase, but they are simply increasing prices because they can.
I understand the escalating costs of doing business. I was a CFO for a small company and ran operations for large companies for many years. It is tough to keep the bottom line in the black with inflation and heavy handed regulatory environments. Fixed costs and overhead continue regardless of sales revenue. Supply and demand drives much of what we have experienced in the past several years. I firmly believe this reset the price point more than any other factor.As a business operator who went through the massive cost increases of the past few years, I have to disagree. Just in one year, we saw various increases from 10-50% with some items completely unavailable or doubling or tripling in price, and our labor costs exploded by 25%, in one year. Labor cost are not just wages, for about 40% of our overall labor costs are related to benefits that include various required insurances, it takes 10 insurances to operate my business, new state required minimum paid sick leave, new federal and state mandated OSHA infection control requirements, routine infection control supplies, routine Covid testing, a full time infection control specialist, all insurances saw double digit cost increases, etc, etc, etc, and everything under the sun went up in price and has not stopped.
With about 200 line items in my budget, it became unsustainable without huge increases to offset such unexpected costs.