KFC prices rise!

KFC prices rise!
Jul 20, 2007 05:24	#11
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	Good question Evening! But we cannot discussthat here, it;s the wrong forum ! haha OK, it goes back to the basics of the free market/market economy or whatever you choose to call it. Suppliers will only proiduce if it is worthwhile, so if their costs go up, they must increase their prices. OK so why do their costs go up... yes it is is a somewhat circular argument, but hold on! Buyers choose how to spend their money, or they can choose to save it. If prices are increasing, people are spending money (and in the western economies borrowing money to do that. Chinese people have exceptionally high levels of savings because of the fear that past problems might return, but they are beginning to think they don't need the savings and are beginning to spend it...so we now have all those savings added to the current earnings chasing the (temporarily) fixed amount of goods and services....so people are competing for the goods and services...and prices go up (you don't see the competing, but it is our behaviour that counts...when prices rise we decide to buy anyway . And that in turn adds to the prices of the suppliers and round it goes... Simple! (If you have been brought up on this stuff in a western economy!)

Jul 20, 2007 05:24

#11

APAULT
Points:
Join Date: Mar 11, 2006
Status: Offline

Good question Evening! But we cannot discussthat here, it;s the wrong forum ! haha

OK, it goes back to the basics of the free market/market economy or whatever you choose to call it. Suppliers will only proiduce if it is worthwhile, so if their costs go up, they must increase their prices. OK so why do their costs go up... yes it is is a somewhat circular argument, but hold on! Buyers choose how to spend their money, or they can choose to save it. If prices are increasing, people are spending money (and in the western economies borrowing money to do that. Chinese people have exceptionally high levels of savings because of the fear that past problems might return, but they are beginning to think they don't need the savings and are beginning to spend it...so we now have all those savings added to the current earnings chasing the (temporarily) fixed amount of goods and services....so people are competing for the goods and services...and prices go up (you don't see the competing, but it is our behaviour that counts...when prices rise we decide to buy anyway . And that in turn adds to the prices of the suppliers and round it goes... Simple! (If you have been brought up on this stuff in a western economy!)

Jul 24, 2007 04:00	#12
EVENING Points: Join Date: Dec 5, 2006 Status: Offline	Fine Analysis, Paul! Seems you are more interested in China's economy. I see many of your posts concerning about it. For a foreigner, you are great to know so much and deep about China.

Sep 20, 2007 20:41	#13
GUEST41163	c'mon, we all love kendeji. 0.5 to 1.0 RMB is nothing, and if they haven't raised prices in 10 years, that's pretty reasonable. I'm sure gonna keep eating at KFC.. unless I start to become a pangzi.

Sep 29, 2007 22:03	#14
GUEST21131	I buy few things to cool the economy~~~ :))

Sep 6, 2010 09:36	#15
GUEST89232	$9 dollars for a fast food place for a small meal, what a rip off.

Sep 6, 2010 20:58	#16
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	A amburger, a small bag of fried chips and a cup of coke cost more than 20 yuan in the KFC. Really expensive. But a lot of Chinese people, especially young guys, love the food.

Sep 9, 2010 04:30	#17
XIAOXIAO Points: Join Date: Sep 17, 2008 Status: Offline	I go to KFC or Mc Donald on occasions. There I order some fried chips and cool drinks. You know why? I am not interested in the food there. The environment there is pretty clean and cozy.

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