this post was submitted on 03 Apr 2024
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Economics of scale.
The end consumer doesn't give two shits about that small an increase.
But the CEO sees that as $0.10 across a billion dollars gross revenue...
That could be 100 million in profit.
Even tho the money is hypothetical still, he ain't letting go of it.
The option wasn't giving up 10 cents per pizza though, it was raising the price.
Exactly...
If they raised the price ten cents to pay for healthcare and/or a living raise, they don't view it as costing them nothing.
They see it as losing the money they aren't even currently getting.
I feel like I'm just repeating myself, but it's hard to make it any simpler.
Don't worry I understood what you meant (and am slightly confused by the other comments — maybe they think they'd sell less pizza and therefore make less over all?)