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It's not a crime if we do it with an app

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Re: It's not a crime if we do it with an app

#131
The article referenced in there about Lamb Weston and MvCain foods and goes into a lot of detail about how prices get determined in this market.

The “behave themselves” comment was certainly juicy, but the entire multi thousand word article is about how these companies are in an intense competition in a low margin industry. Here’s an example:

> Former VP of International at Lamb Weston Well, McCain came in at a better incentives than Lamb Weston, and Lamb Weston maybe felt complacent and said, no, we're going to keep this account, and they lost it. That was a blow to their ego. They lost the Wendy's business. They lost the majority of their Wendy's sales to Cavendish Farms, which was 200 million pounds plus. So they've lost some major accounts. Tegus Client Because they refused to concede on the price mostly? Former VP of International at Lamb Weston That's correct. They could have kept the business if they conceded on the price. But there's a cost to conceding on the price as well. I mean there's a cost, but there's also cost to not to concede. I'm not sure when they're going to get the Aramark's business back or if they ever get it back. They've got to pay us to get Aramark's business again. They're going to have to do exactly what McCain did, try to maintain it. Tegus Client Right now, this sounds more like a good competitive market. So how does this tie back to just Lamb being silent on the price increase and McCain like leading again? Former VP of International at Lamb Weston Well, they felt that they're not going to give McCain Foods the price increase. The price increase never happened. Even though it did get announced, it never did happen. So this is one of those battles that may be short-lived, but it could be long-lived. It could be a couple of years because McCain, a privately held company, they're not subject to the stock market or the analysts asking them difficult questions, even though most of them don't ask difficult questions to Lamb Weston. So they're independent. They can do what they want to do. The 2 major shareholders are the second generation, Scott and Mark McCain. Their EBITDA exceeds $1 billion a year, not bad for 2 young men that inherited the business. So they're not really in any hurry to concede to Lamb Weston or to say, okay, I'm just going to forget this. It could be tit for tat down the road, could be. Or they may just say, let's not go there, let's just try to raise the price. If Lamb tries to raise their price in September, you asked the reason why would they raise prices if they had a cost reduction on potatoes, they're going to raise prices because inefficiencies in the plant, COVID costs, they're going to mention that. They're going to talk about ingredients, oil consumption, cardboard up and all. So their COGS have increased even though potato prices would have been reduced.

https://app.tegus.co/guest/document/view/67Hf3DiMGQ944SkfpRh...

Re: It's not a crime if we do it with an app

#132

This is the way our world works. If you steal a potato, you will be arrested immediately and the case will be resolved in a few weeks or months. If you illegally fix the price of potatoes and steal billions from the market, you will be allowed to operate for years in the open while a lengthy civil procedure eventually may ask you to give 1 or 2% of what you stole back in fines. Don't blame the potato theives or potat…

A real world example: wage theft in the US is bigger than all other forms of theft combined. How often do you hear about it? We hear endlessly about shoplifting rings and lax enforcement by lefty prosecutors. When was the last time you saw coverage of workers not being paid what they’re owed? When was the last time somebody went to jail for not paying their workers what they’re owed?

Re: It's not a crime if we do it with an app

#133

What a terrible article. The title and the first paragraph talk about how new business models are circumventing existing laws, which seems fair enough and actually quite an interesting subject. Then, there is a switch to the most traditional of businesses with the most traditional business models. Who, the author argues, are engaging in price gauging. In the second paragraph he claims that apps cause this inflation (…

> Then, there is a switch to the most traditional of businesses with the most traditional business models. Who, the author argues, are engaging in price gauging. In the second paragraph he claims that apps cause this inflation

He is saying that the traditional businesses use an app that allows for a legal way of price gauging.

> The last paragraph portraits a stunning lack of economic knowledge, as companies raising prices in line with inflation obviously would not lower prices after the source of the inflation is gone.

The author claims, that these companies raise prices more than inflation based cost increases in production would allow for.

Re: It's not a crime if we do it with an app

#134

What a terrible article. The title and the first paragraph talk about how new business models are circumventing existing laws, which seems fair enough and actually quite an interesting subject. Then, there is a switch to the most traditional of businesses with the most traditional business models. Who, the author argues, are engaging in price gauging. In the second paragraph he claims that apps cause this inflation (…

Did we read the same article? There are repeated examples of cartels colluding to fix prices which aren't being prosecuted because they're using a third party (app) to coordinate the collusion rather than doing it in a board room.

Re: It's not a crime if we do it with an app

#135

What a terrible article. The title and the first paragraph talk about how new business models are circumventing existing laws, which seems fair enough and actually quite an interesting subject. Then, there is a switch to the most traditional of businesses with the most traditional business models. Who, the author argues, are engaging in price gauging. In the second paragraph he claims that apps cause this inflation (…

I noticed you mistook "gouging" for "gauging", which I agree, would change it to an obviously-wrong essay that failed to back up anything.

There's a lot of other stuff that is unclear (questions in the title? the article says inflation goes in reverse?), but that one thing neatly explains the vibe that might have driven the rest.

Re: It's not a crime if we do it with an app

#136

Funny, whenever any leftists stay in power for a while we see such kind of situation, but somehow it only gets noticed AFTER they are no longer in power.

This is ridiculous. This situation has persisted under all parties, globally.

You think it's left vs right but actually the entire system has been co-opted by this neo-oligarchy.

Re: It's not a crime if we do it with an app

#137
post #18

Don’t react to the Airbnb and Uber: read the article to the end. The core argument is tech empowers oligopolies which in turn drives inflation. There are other damning facts too: > private equity companies have rolled up all the fire truck companies, hiking the price of trucks, creating backlogs and bottlenecks for parts and service, and starving the nation's municipalities (including Los Angeles) Capitalism is dead.…

>The core argument is tech empowers oligopolies which in turn drives inflation. No it isn't. How is potato farming "tech"?

PotatoTrac is an analytics service. Not a farm.

Re: It's not a crime if we do it with an app

#138
> These companies have been hiking prices for years, but really started to turn the screws during the post-covid inflationary period

The only one I found a time series for quickly is Lamb Weston: Their margins steadily went down after 2019, then surged quite substantially, and by the end of 2024 were more or less back at their 21/22 low points [1]

Additionally there's apparently a class action suit against the companies mentioned which was filed in November 2024 [2]

I don't know enough about this market to judge whether something shady happened, but it seems like both of those facts are relevant to this article.

1. https://www.macrotrends.net/stocks/charts/LW/lamb-weston/pro...

2. https://www.hbsslaw.com/cases/frozen-potato-products-antitru...

Re: It's not a crime if we do it with an app

#139

Earlier quoted context omitted.

Don't blame anymore because blame is an act of supremacy. Responsibility says it's shared to varying degrees through various classes of equivalence among all. The thieves are trying to eat or feed people in the context of oppression that capitalism is. Capitalism is a system of oppression that requires poverty to work, so is an economic system of oppression. "Crimes" committed in the context of oppression are require…

Hypothesizing for the moment that all of that is true and accurate, what do you propose the solution is?

Rampant open air community building for learning how to care for one another. Underground railroads for moving people to safety. Learning armed self defense.

We're literally in a country that is setup to become a prison & the fences may already be built and just not fully turned on yet.

Re: It's not a crime if we do it with an app

#140

Earlier quoted context omitted.

You don’t think massive conglomerates have additional advantages they can deploy against competitors in order to retain their cartels?

Do you have some specific examples?

Oh sure: billions of dollars in cash? Hundreds of lawyers? Lobbyists on Capitol Hill? A buddy at USDA or EPA? Lower unit prices on just about every single thing they need to buy? Brand recognition? Strong negotiating positions in 100% of their deals?
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