Things Just Get More Crazy

@porwest (112864)
United States
September 16, 2022 3:21pm CST
Inflation has gotten so bad and is happening at such a rapid pace now that you cannot even rely on what price you will be charged. But it's not just the inflation. It's the supply chain too, because lead times have gone through the roof as well. Manufacturers and vendors are now saying, "You will be charged a price according to the date of shipment. Not the date of the order." To me that's ludicrous. Imagine sitting down and ordering a steak that costs $20. By the time they serve it to you the cost has risen to $25. That is exactly what is happening here. You go in and buy a furniture set that is not in stock and place your order in September. You agreed to pay $3000 for it. But by the time it is ready to deliver to you in November, you will be forced to pay $5000, the cost of the furniture set not when you ordered it... But when you receive it. Ridiculous. But it is happening more and more with the vendors we work with on a daily basis, and once it becomes a thing, it may never NOT be a thing. What that means going forward is for a lot of things many people may not have any idea what something costs by the time they actually get it.
11 people like this
13 responses
@CarolDM (203396)
• Nashville, Tennessee
16 Sep 22
This happened here a few days ago. Went furniture shopping. Most everything would have to be ordered and the price would be shared when the item was received. They gave us an average of what the total would be. Crazy times. But nothing to see here, right!
2 people like this
@porwest (112864)
• United States
16 Sep 22
Oh man. Then I stand corrected because I thought this was only happening inside of B2B right now...but already happening to consumers? Crap! We are effing doomed!
1 person likes this
@porwest (112864)
• United States
17 Sep 22
@CarolDM What a load of complete crap.
1 person likes this
@CarolDM (203396)
• Nashville, Tennessee
16 Sep 22
@porwest Oh yes it is real for all of us.
1 person likes this
@much2say (57760)
• Los Angeles, California
16 Sep 22
As @NJChicaa mentioned, that doesn't sound legal - doesn't make sense. I would expect to pay the price I agreed to pay . . . after all, that's the reason why I would agree to it in the first place .
2 people like this
@much2say (57760)
• Los Angeles, California
18 Sep 22
@porwest I would think so too. How is anyone able to have the correct estimates/pricing for anything. Instead of passing on the savings, it's passing on the extra expenses. I can see how some snaky practices could sneak in. This cannot possibly fly at the consumer level!
1 person likes this
@porwest (112864)
• United States
17 Sep 22
Ultimately, I think there is a legal argument to be made. Even when it comes to the purchase orders we submit to vendors, they are essentially a contract, and therefore anything that happens outside of that original agreement, I would consider to be a breach. But I am not a legal expert.
1 person likes this
@porwest (112864)
• United States
19 Sep 22
@much2say The bad thing is that once something like this starts and becomes normal it never goes away. Sort of like fuel surcharges that got started kind of during Obama's term and even when Trump fixed gas prices, the surcharges never went away.
1 person likes this
@kaylachan (84823)
• Daytona Beach, Florida
16 Sep 22
It's simply all about saving money in the future, instead of spending more to make several trips for the same thing. Sure you're spending more, but now you have a product that lasts a while that you'll actually use.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
I agree with your comment, but I am confused how it pertains to the post? Just asking...I could be slow you know. lol
1 person likes this
@kaylachan (84823)
• Daytona Beach, Florida
17 Sep 22
@porwest Maybe. I was referring to where your friend was complaining about having to cart all that product to your place. And how buying in bulk benefits you both.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
@kaylachan Are we reading the same post? Or was that from a comment? I am sorry, I am just genuinely confused here. It may just be me. lol
@RebeccasFarm (91297)
• United States
16 Sep 22
What other evils will befall us I ask? I am not and would not be surprised.
2 people like this
@porwest (112864)
• United States
17 Sep 22
Unfortunately no one knows anymore. The rules have certainly changed, and not for the better.
1 person likes this
@NJChicaa (127159)
• United States
16 Sep 22
That doesn't seem legal. Isn't accepting an order like entering into a contract?
2 people like this
@porwest (112864)
• United States
16 Sep 22
This is my thought as well. A purchase order in business is exactly that. A contract between a seller and a buyer that agrees on specified parameters of the original agreement. If the terms change at the time of receipt, to my mind the contract has been breached. But I am not a legal expert of course, so I don't know what rule or law or whatever else they (the vendors) are using to justify the policy.
1 person likes this
@NJChicaa (127159)
• United States
16 Sep 22
@porwest Consumers need to nip this in the bud by refusing to patronize companies that try this.
1 person likes this
@porwest (112864)
• United States
16 Sep 22
@NJChicaa So far it doesn't seem to have spilled into the consumer side. But trends start somewhere and if it starts in B2B, eventually it could carry over. I still think there is something to be said about a "contract," and this idea even for B2B may run into some problems.
1 person likes this
@Nakitakona (59987)
• Philippines
4 Oct 22
It's also happening here. Our price control council isn't doing their job. The prices of basic commodities here are soaring high.
1 person likes this
@porwest (112864)
• United States
6 Oct 22
Luckily we do not have a "price control council." We have a free market and that works best. Even when it sometimes fails.
1 person likes this
@porwest (112864)
• United States
10 Oct 22
@Nakitakona It does not seem to be working if you think about. Free enterprise and being able to sell things for what they are worth helps more people than controlling prices does. No one wins if the government sets the rules based on what they "think" rather than what things actually cost or should cost.
1 person likes this
@Nakitakona (59987)
• Philippines
9 Oct 22
@porwest Price control by name for it's doing its mandate for people's welfare.
1 person likes this
@DaddyEvil (174558)
• United States
16 Sep 22
No, you won't be "forced" to pay the higher price. You can walk away and find something in your price range or, wait until the downturn and buy the same furniture for pennies on the dollar. Just like what happened in 2008.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
Well, I certainly agree that the consumer has greater power. You would think that it would be the same for B2B, BUT, retailers have to stock shelves and companies like the ones I have to sell to need their trucks on the road to pour concrete. They will pay whatever they are asked, ultimately, since they can't operate without the parts. Our company has talked about adding an automatic additional 13% markup on anything with a longer lead time. In that sense our customer will pay the price we quote. But we'll pay the difference.
1 person likes this
@1creekgirl (44560)
• United States
16 Sep 22
That is crazy! It should legally be the price you signed for. But nothing really shocks me anymore.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
I think the same. I have mentioned that our purchase orders are essentially a contract. To my mind, to have any other outcome than what was agreed upon is a breach of said contract. There MUST be a legal argument to be made.
1 person likes this
@moffittjc (128837)
• Gainesville, Florida
18 Sep 22
That is the stupidest thing I've ever heard, but unfortunately is the reality of what we're dealing with these days.
1 person likes this
@moffittjc (128837)
• Gainesville, Florida
21 Sep 22
@porwest It's just absolute craziness no matter how you look at it. We are living through some very interesting times right now.
1 person likes this
@porwest (112864)
• United States
19 Sep 22
It is really getting nuts. I don't even know where to go with any of this anymore. And of course this kind of stuff will potentially eat into my commissions because I have to sell at the agreed upon price regardless of what my cost is when the part gets in to ship it. Ugh.
1 person likes this
@Deepizzaguy (122232)
• Lake Charles, Louisiana
17 Sep 22
I know what you mean since our world right now is beyond bizarre.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
...and getting more bizarre every day. Nothing seems to be off the table anymore.
1 person likes this
@LindaOHio (222527)
• United States
17 Sep 22
When I bought my recliner, I had to buy it off the floor because the owner refused to order anything in. First of all, they don't have enough workers to make the furniture; and the cost increases every time she orders anything.
1 person likes this
@porwest (112864)
• United States
17 Sep 22
It's crazy. It used to be that price increases happened regularly about once a year. Now we get price increase reports at work every single week, and it's not different products or vendors. It's everything. It's all going up weekly.
1 person likes this
@Kandae11 (57230)
16 Sep 22
It is happening everywhere. I find l am spending almost triple the money that l spent on some items a year ago.
1 person likes this
@Kandae11 (57230)
16 Sep 22
@porwest. Well , the same prediction was made on a religious program called "The World Tomorrow".
1 person likes this
@porwest (112864)
• United States
17 Sep 22
@Kandae11 It's stuff like this, happening today, that makes me think another Great Depression could be a very real thing. Let's hope that can be avoided.
1 person likes this
@porwest (112864)
• United States
16 Sep 22
What scares me is that this is a practice right now in business to business. Will it ever spill over onto consumers? I don't know. I'd say a purchase order, even business to business, is a contract that is being breached if different terms are a condition of receipt than were present on order. But that's for legal experts to hash out. For retailers, a practice like this could be a nightmare because there would be a lot of cost adjusting to occur, PLUS, retailers could not take advantage of lower prices to order overstock to try and navigate against future inflation. The whole thing could wind up being a very big mess.
1 person likes this
• United States
16 Sep 22
I got chewed out by a friend yesterday, I bought 12 cans of my favorite iced tea, it was on special for 68-cents. Normally it's 89-cents a can. If I hadn't stocked up on the stuff I did my grocery bill would have been at least triple what it usually is. A lot of the "inflation" is simple greed. Each link of the chain expects to make a profit. So, if you figure that a can of soda costs 15 cents to produce and bottle, you can add at least another 25 cents for it to be shipped to the wholesaler. So, that makes the cost 40 cents. The wholesaler is going to charge another 40 cents to the retailer for them to purchase the stuff to sell. After all they need to make a profit too. You're looking at 80 cents for the can of soda before it hits the shelves. The retailer is going to charge a dollar more for the soda because of their cost, which includes their employees who are asking for a raise. So, when you finally get to the cooler to pick out your soda your cost is going to be $1.80 PLUS the recycling fee of 10 cents per can, and sales tax. I haven't paid attention to California's sales tax which is a whopping 8.75%. Oh, and don't forget the bag charge of 10 cents per bag. So, for that can of soda you're looking at a grand total of $2.17!!! So, when I can get my beverage for a discount of 21-cents per can I'm going to stock up. That's not figuring in the other things I needed. I don't have a vehicle, so I have to depend on others for a ride. The friend grumbled a LOT, but as I told him I don't have a car myself and what I bought couldn't be carried on the bus. I didn't go into how much it costs to ride the bus or to do my laundry. He just didn't understand that I was avoiding the chain of greed. I have taken business classes and the instructors would emphasize the chain of greed and the fact that the people are needing to make a profit. They didn't emphasize that that a lot of the markup in price was that everyone wanted to make a bunch of money at the consumer's expense. Maybe that's why some of the major chain stores ended up closing their doors and going bankrupt. I keep wondering if instead of raising the wholesale price from 25 cents per item to just 15 cents per item, and the wholesaler doing the same thing, going from raising the price 40 cents to just 20, and the same with the retailer going from a dollar profit to only say, 70 cents per item, wouldn't they still be making money and possibly selling more of their product at an end price of just $1.05. The sales tax would amount to about 10 cents per can. You can't do much about the charge for a bag, but the final price for the product would be $1.25 instead of $2.17. All kinds of excuses can be made for the "inflation", but it still amounts to good old fashioned "greed! The consumer can go suck a hot rock, it's either they come up with the money or do without. Then everyone can complain about the homeless, who ended up that way because they couldn't afford the high rents along with other high costs. The consumer hasn't stopped and added up the price of what their purchasing, and when that livingroom set comes in at a final cost of $5,000, they don't say "Forget it, the price is too high!" they simply charge it and have it delivered. The people who are lower income get to shop yard sales and thrift shops for their furniture (although inflation has hit my favorite thrift shop and prices have increased up to 30% on some items.) and if you want that couch that is priced at $350 (when the month before it might have been at $150) you pay the price. I shop carefully, and when there is something that I use a lot of at an extremely reduced price, I stock up, so it lasts awhile. I'm also very careful about buying new stuff and look for the best price. So, if people like my friend who gave me the ride yesterday doesn't understand my reasoning behind my stocking up when I have someone with a vehicle that can haul my mass of purchases, I'll wait until they cool down and I'll explain it to them again. And again if necessary.