The Soapbox

BocaHoo91

Joined: 06/03/2005 Posts: 31264
Likes: 52951


Certainly some industries are more fragmented and competitive than others


But Huggies can't just raise prices because they want to dial up profits without the risk of losing share to Luvs or any host of generic store brand diapers. There is absolutely an incentive for them to try to reduce their cost as much as possible and raise their prices as much as possible. But absent collusion between P&G, KMB, the various store brands (Kirkland, Target), and the smaller "eco friendly" players, they still have to compete for share and can't just charge whatever they want.

The oil and gas market even more competitive (at the retail level.... certainly the market for oil and gas production is not a free market... but not much we can do about OPEC). Average margins are in the single digit range and pricing swings wildly with supply / demand swings. When demand is high and supply is short, like now, prices skyrocket. When demand is soft and supply is strong (relative to demand) like 2 years ago, prices plummet.

(In response to this post by Seattle .Hoo)

Posted: 03/26/2022 at 5:22PM



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