Why You Shouldn't Rake Prices

Businesses want to maximize profits, and so the reason you don't keep raising prices is eventually you lose sales. But if all your competitors are facing the same cost problems that you have when you raise prices, other people have to raise prices too. And then what happens is businesses end up reducing capacity so they can achieve their profitability at a lower scale. Then prices really start to go up because now supply is coming nown because fewer businesses are providing these products or services.

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