Enough Is Enough: The Outrageous Reality of Price Hikes

While this topic is outside my usual focus, I felt it was important to share my thoughts on it. And it is business related... not a Facebook topic.

New government fees are hitting certain products, and stores are raising prices accordingly. Not great but businesses need to cover their costs. But here’s what’s really going on: some companies with zero impact from these fees are jacking up their prices anyway. As for those who are impacted, I can’t help but wonder if their price hikes actually higher than the government charges themselves? Honestly, it’s hard to tell!

Here’s my first example: Two weeks ago, I bought my usual chocolate treat, 100% made in the US for $4.99. When I returned to the store last weekend, the price jumped to $7.99, a 60% increase. I didn’t buy it.

Second example: I needed to renew a software from an American company. Last year, it cost $70; this year, the renewal price was $100. This is a 43% increase. Seriously? I called and insisted on a better deal, and they agreed to drop the price back to $70. Sometimes, speaking up really does pay off!

The Opportunistic Grab

It's price gouging disguised as an economic necessity. Some retailers see headlines about government fees and think "perfect cover" to boost their margins on everything… and maybe to recoup lost money from COVID. Yes, it’s still happening.”

This is the same mentality that drives up shovel prices before snowstorms and hotel rates during power outages. Companies are taking advantage of confusion and fear to pressure their own customers.

Why This Backfires

The businesses playing this game are:

• Destroying customer trust

• Training people to shop elsewhere

• Setting themselves up for backlash when things normalize

The Smart Play

Companies with integrity are being transparent about what's actually affected by new fees versus what isn't. They're absorbing some costs where possible and communicating honestly about necessary increases. These businesses will earn customer loyalty while the price gougers burn through theirs.

What's Coming

I hope I am wrong, but this free-for-all won't end well. Ongoing factors like new tariffs, supply chain challenges, and shifting business strategies could still put upward pressure on costs in certain categories.

Some companies are building long-term relationships. Others are cashing in for short-term profit. So, when customers figure out who was taking advantage versus who was being honest, they'll remember, I hope.