Author Topic: Owner of 40 restaurants installing Obamacare Surcharge  (Read 1583 times)

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Offline BballTim

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Re: Owner of 40 restaurants installing Obamacare Surcharge
« Reply #30 on: November 17, 2012, 04:16:59 PM »

If people don't want to pay this self imposed price increase for "Obamacare" just shop elsewhere. Those places will still be providing health care WITHOUT the extra charge so....


  That's pretty wishful. Add to a company's employee costs and they aren't just going to eat the loss in profits, they'll either raise prices or cut back on the wages they pay somehow. Denny's and Papa John's might be the only ones who directly attribute their price increases to the ACA but they're obviously not the only ones that will raise their prices.

Whats Wishful about it? Companies will be required to provide the health care. If a company chooses NOT to increase price, and you shop there then you are supporting a place of business that is NOT surcharging for obamacare with your consumer dollar.

If anything is "wishful" it is your assertion that no company will find it an effective strategy to maintain price and make up their "lost profits" by increasing unit sales through new business obtained from companies that choose to drive down demand and maintain static profit margins by increasing consumer cost.


Your attempt to make me seem "wishful" is built on the strawman argument that EVERY business in EVERY industry will need to increase prices to a significant degree to cover the new laws, which is a fine republican talking point, but not actually proven in reality to be anything more than that. Will some companies choose to increase prices on their customers? I'm sure they will.

but Companies have other choices as well, such as maintaining price and accepting a slightly smaller profit margin, increasing unit sales, creating increased demand, becoming more inventive in the market place, reducing production costs, ect.

  Obviously I didn't say that EVERY business in EVERY industry will need to increase prices to a significant degree to cover the new laws. Nice strawman though.

  I guess the assumption is that there are a multitude of companies that have ideas to increase sales or profits that they refrain from implementing until they have a rainy day?

So what was wishful about my point that shopping at a place that doesn't increase prices in response to Obama care would be supporting a place of business that didn't surcharge for obama care again? Or are you just not going to address that, and try to turn it around on me instead of addressing the actual point made.

Your counter point was that I was being some wishful thinking person by asserting that some places would not raise prices, in response to the new healthcare laws, and people could support that choice by choosing to employ capitalism to reward those companies for that decision.

I'm still waiting to hear how that was such air headed, wishful thinking barring the assumption that all places have to raise prices in response to this new legislation, and thus it isn't a valid option for a consumer.

It's a clear response. If domino's for instance, doesn't increase prices and papa John's price increase drives customers from them to dominio's, what will happen to domino's profit as a whole?

You think they'll care they are making slightly less per customer if they increase unit sales by a substantial degree do to their competitor pricing themselves out of sales?

  I said wishful, not air-headed.

  You're saying that, while Papa John's will raise their prices by 5%, Dominos will keep their prices the same and that 5% difference will lead to increased sales, increased profits and fewer sales by Papa John's. If that's the case, why doesn't Dominos just drop their prices by 5% now? Are they trying to avoid more sales and higher profits?