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A higher margin increases the incentive for people to make more, though.
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Probably not, right? Demand is already there. The factory is already incentivized, it’s just damaged and needed time to get back to full capacity. A contender isn’t just going to spring up because prices are temporarily high.

Even if you already had a factory that could easily be converted to this product, you’d have to factor in the switching cost, opportunity cost, shipping, marketing and regulatory stuff. This likely offsets the consumer’s willingness to pay extra during the shortage, and as soon as the original factory is back, they’re going to price you back out. They’re already operational, as per the article.

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In the longer run, maybe, but if the factory is already working to rebuild then arguably that incentive is already met and it's more just the time it takes to get capacity back up, which is not as flexible with spending money on it as people would like.
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Would you make a hard bread factory if the price was higher? How high?
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I'm not a hard bread expert but at high enough prices, I know plenty of enterprising people with kitchens.
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Cool are they licensed for commercial use?
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That implies that everything with a price is always out of stock.
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It implies no such thing.
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The presence of a price "selects who can access it", hence there's not enough stock to give it away for free. (Sometimes deliberately.)
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There’s plenty of stuff you couldn’t get rid of if you gave it away for free. You seem to be ignoring demand.
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I considered that. It's a fair point, there are things that you couldn't give away, but almost always somebody would want them, if the price was zero. Hard bread, for example, would become like a natural resource, full of calories, to be turned into nicer bread.
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Wut? That makes no sense.
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Which part? You see this depends on your prior assumptions about how much stock there should be, and those are based on the state of affairs that you're used to and that you consider to be the natural order of things. But if you imagine that the proper natural order of things is for everybody to have as much of everything as they like, to squander profligately, then there's always a shortage of everything, relative to that state. On the other hand, if you consider the natural order of things to be that hard bread is very expensive, then raising the price (to stop it being too cheap) would indeed remove the shortage. You see? I'm saying that declaring a shortage is a kind of mild Chauvinism, an assumption that what you're used to having is proper and correct. But of course that might be true, in a way.
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No, it implies that everything with a price and a supply issue will likely still face that supply issue even with a higher price.
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Everything with a price has a supply issue.
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No, it doesn't.
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Oh, OK.
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I'm really glad we sorted this out.
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I don't know where you got that honestly.

The situation here is that there is a temporary supply shortage. If you raise the prices to drop sales and guarantee you have stock it means you priced out most of the people. You narrowed your market only to the few who can afford it and those few are slowly going through that stock.

How does that help the situation? At the end of the day some people will have the bread (because they were in the store early, or because they have money) and other won't.

Raising prices in this situation only helps make more profit, extract more from the existing market. It does nothing to solve the problem of people having bread.

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Of course it helps, pricing increases make it more attractive to build more supply.
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Not in this case. You're citing Economics 101 without addressing the situation from the article.

The current primary supplier had a temporary setback caused by a fire in mid-March and operated at reduced capacity, before going back to full capacity in July. Whatever flexibility competitors had to increase capacity with little to no investment was probably captured. A few months of marginally improved prices won't incentivize any competitor to invest. Hard bread isn't the kind of product that can command a big price before customers lose interest.

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It doesn't increase supply, but it slows down how fast the supply sells out. This allows there to always be supply available for purchase.
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> it slows down how fast the supply sells out

This is not the goal. The only mitigation that could make sense is to impose limits per person or household to avoid someone hugging all the supply.

> This allows there to always be supply available for purchase

By the very few who can afford it, by definition of raising the prices until the products barely sell. If you have 100 items and 1000 people you guarantee that at least 90% of people won't get an item. It doesn't matter if it's because there is none left, or because it's too expensive. If you're hungry because the shelf is empty, or the shelf is full but you can't afford it, what's the practical difference for your stomach?

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>This is not the goal.

It is what the stores are having a hard time accomplishing.

>the shelf is full but you can't afford it

From the store's perspective it is still in stock and supply is available. How much people eat of it is separate from what the article is discussing.

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> It is what the stores are having a hard time accomplishing.

It's a proxy for what the stores have a hard time accomplishing. The goal is to fulfill demand. Do you genuinely need the explanation why a store's goal is to sell not "have on shelf"?

> From the store's perspective it is still in stock and supply is available

I guess I do need to explain. Now I'm starting to think this is intentional hard headedness :). If the goal was just "have X on the shelf" they'd put one item and price it like gold. Or put it really high on the shelf. Goal achieved. When the authors of these articles say "have on shelf" they assume the reader is reasonable and intuitively makes the connection to "fulfilling demand, people able to buy".

> How much people eat of it is separate from what the article is discussing.

You're right. What the article is discussing is how much people can buy. If there is no supply then people aren't buying. But make no mistake, the buying is important, not the being on the shelf. Maybe some stores put the breads in a basket ;).

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