DesideriScuri
Posts: 12225
Joined: 1/18/2012 Status: offline
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quote:
ORIGINAL: tamaka quote:
ORIGINAL: DesideriScuri FR, Any cost added to the cost of doing business, ultimately gets borne by the consumers. FirstEnergy (parent company of Toledo Edison and the Davis-Besse Nuclear Power Plant, etc.) were fined for an issue where the stainless steel dome over the reactor had pits the size of footballs in it and some of those pits left the dome with less than a 1/2" of steel. The fine was hefty, and came with the caveat that it couldn't be passed down to "ratepayers." So, who paid for those fines? All those fines got rolled into the prices that were paid, not by ratepayers, but by bulk buyers of excess power. While the direct customers of FirstEnergy's power companies didn't pay for those fines, secondary customers did (through the increased costs of bulk power sales). A company such as FirstEnergy isn't going to go out of business because of a fine. A grocer isn't going to slice into its already thin profit margins absorbing the cost. It's going to raise prices so customers ultimately pay for those "taxes." Or cut payroll. Or cut benefits (hire more part time & less fulltime) Or cut marketing 'extras' A grocer can do all or any of those 3 things you mentioned, but will likely only do so as long as it doesn't hurt the business. A business owner is always in the position of optimizing profits, even when margins are slim. If cutting payroll or hiring fewer FT and more PT workers will optimize profits, then a business is going to do that. I wouldn't be surprised to find out that many businesses have already done those things, making further added costs less likely to be dealt with via hiring changes. As far as advertising goes, it's, again, about optimizing profits. If an ad campaign isn't going to drive sales and/or profits, it will likely be cut anyway. If a marketing plan has proven itself to be worth more than it costs, adding costs to a business isn't likely to result in not spending $ on that marketing plan.
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What I support: - A Conservative interpretation of the US Constitution
- Personal Responsibility
- Help for the truly needy
- Limited Government
- Consumption Tax (non-profit charities and food exempt)
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