Argie Economics:reduced Sales Increase Prices.constant Rev.

[Rich One]

Clarin published an Article on the subject, defying Supply and Demand Economics...!! Less demand so Increase Prices.

Consumer market;

http://www.ieco.clarin.com/economia/Suben-precios-perder-facturacion-ventas_0_1632436863.html

Increase Prices to maintain Revenues , due to decreased sales.

Consumerism:
Is the strategy used by the majority of sectors researched by Focus Market, a private consulting group for 2016 . With increases of up to 40%.

 

[EJLarson]

Clarin published an Article on the subject, defying Supply and Demand Economics...!! Less demand so Increase Prices.

Consumer market;

http://www.ieco.clarin.com/economia/Suben-precios-perder-facturacion-ventas_0_1632436863.html

Increase Prices to maintain Revenues , due to decreased sales.

Consumerism:
Is the strategy used by the majority of sectors researched by Focus Market, a private consulting group for 2016 . With increases of up to 40%.

I've heard this over and over through the years. If you're Argentine, trying to sell something and no one's buying, raise the price! Guess things do go upside down south of the Equator.

 

[Rich One]

I've heard this over and over through the years. If you're Argentine, trying to sell something and no one's buying, raise the price! Guess things do go upside down south of the Equator.

It makes some sense .... they need a higher level of income to be able to vacation with the family in Mar del Plata...!!

A case of InElastic demand...??... Classical Texts mention Gasoline demand is Inelastic...? Not Here prices of Gas went up 40 % sales went down 10 %, Revenue went Up....??

Poor Adam Smith...!! and Professor Samuelson .

Marketing Myopia or Price collusion..??

 

[UK Man]

Ah yes, for some strange reason the 'there's a mug around every corner' business strategy seems to work here.

 

[Noesdeayer]

It is price collusion or price setting and has been a fairly common practice in Argentina for about 75 years.Especiall during Peronist govts.Many papers have been written on this subject.

 

[artigas]

Lets not forget to give credit to the present government´s economics team which has borrowed large amounts of Dollars which have artificially propped up the Peso while leaving much of the old government´s restrictions on imports in place, raising real prices on local goods. Take butter as an example, there now appears to be a butter ¨shortage¨ in Argentina which can apparently only be ¨solved¨ by higher prices for Argentine consumers. However, world butter prices continue to fall and fellow Mercosur neighbour Uruguay has more butter than it can sell due to the collapse of demand in its traditional Brazilian and of Venezuelan markets. Why are basic food products for consumers in the ¨agricultural superpower¨of Argentina more expensive than in Europe or the US? Why does the government mandate that petroleum prices ( and thus local nafta prices) must be 50% higher in Argentina than on world markets? Break up the local crony price fixing monopolies and open the market to imports and prices will go down and quality will go up, its not that difficult a concept to grasp, unless you are an Argentine minister with a prestigious foreign MBA but beholden to the protectionist crony capitalist class in Argentina.

 

[RodalfoWalsh]

I've heard this over and over through the years. If you're Argentine, trying to sell something and no one's buying, raise the price! Guess things do go upside down south of the Equator.

My toilet flushes backwards at least.

 

[Noesdeayer]

artigas:
Please,don't take us for fools-,"no nos tomes por pavotes".Breaking up the local price fixing monopolies" is exactly what the 2 previous K administrations did not do because they were beholden to the local customary Peronist populist protectionist economics in force since 1945.
Aranguren didn't incurr Nestor's rath for no reason at all.
It was the previous K gov't that mandated that local petroleum prices had to be higher than international prices not the current one.

 

[camberiu]

Lets not forget to give credit to the present government´s economics team which has borrowed large amounts of Dollars which have artificially propped up the Peso while leaving much of the old government´s restrictions on imports in place, raising real prices on local goods.

But...but...but people here guaranteed that Macri was a different type of Argentine leader. That he was way more than just a return to the pre-K Argentina.
Of course you must be wrong.

 

[artigas]

I make no claims that the previous government(s) were any better economic managers than the current government. I do, however, believe the current government's economic team, full of supposedly neo-liberal American trained MBA's, bankers and industry executives have not put effective economic reform policies in place. Whilst the K' s never claimed to be anything but hard core Peronista's, the M's claimed to be modern economic reformers, but have seemingly put in place their own version of Peronismo-lite, rewarding some sectors previously out of favour such as big agriculture, oil, energy and fInance while doing little to reform the egregious practices in such non competitive local monopolies such as electronics, automobiles, clothing and basic consumer foods and products, let alone opening Argentina up the global market or even Mercosur imports. Just sad that this was but another lost opportunity. It looks like, at least economically, Argentina is a country of the past and always will be.