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May 18, 2022

Recently when I go to the supermarket, I find myself thinking, "Huh, did I really buy this much?"

Japanese people probably buy raw eggs to eat, but those have also gone up to $5.20 per pack.

Seongju eggs are almost entirely produced in Seongju, but the corn they use as feed is now 2 to 2.5 times more expensive than before COVID-19 . Container costs, gasoline costs, and electricity costs have also increased by 1.7 to 3 times.

The cost of containers has also probably increased by more than 20%. Raw eggs are refrigerated, which means they cost more than room temperature eggs.

Taxis too. ComfortDelGro, the familiar blue taxi company, raised the fare by 22 cents per meter (400m). Grab also increased its fare by 10-20%.

In Japan, people are making a fuss about the price exceeding 170 yen, but the price of gasoline in Seongju is over the official price of $3.20/liter. It's crazy.

Even Daiso is adding the consumption tax (a 7% price increase).

・Pig and Rocket

Last year, there was much talk about the sudden rise in international pork prices.

The president of a pork bowl restaurant says he can't make a profit unless he raises the price of his deluxe pork bowl, which costs 964 yen, to 1,054 yen, which exceeds the 100,000 yen mark!

So I saw a news report that said that price increases meant customers would leave, and that the store was so worried (?) that it went blank within a few days .

What? Even though it's a gorgeous bowl with blooming pork belly flowers inside, it's just a 90 yen price increase, making it look like Rei's head was hit by Raoh's secret pressure point?

"When we raised the price of rice balls by 10 yen, our sales dropped by more than 10%."

As exemplified by the bitter experience of the convenience store industry, in a deflationary society where price cuts are the norm, a 10% price increase is a matter of life and death.

Uniqlo also received a lot of criticism when it raised the price from 1,980 yen to the 2,000 yen range . Zozotown also received criticism when it announced that it would stop offering free shipping, and Maezawa

"There's no way it's free shipping, Yamato is working hard to deliver it."

If they tweet something like this, customers will leave and they will apologize profusely. Then, for some reason, they will start handing out money.

Oh, no, to be honest, Inazo's company's future depends on a price increase of $2 (about 2.5% ) .

I'm always worried about the company going bankrupt. He's got a shaved head and lots of grey hair , like the president of a pork wholesaler .

・What is corporate effort?

In order to avoid raising product prices, Japanese companies (especially small and medium-sized enterprises, which account for 99.7% of the total) are resorting to cost-cutting measures that are as easy as wringing a dry rag.

Mop cloths are basically labor costs.

Those who don't touch on labor costs are raising prices stealthily by increasing the amount from 200g to 180g or lowering the quality by 10%.

"The price of appearance doesn't change"

Companies have no choice but to make such efforts.

On the other hand, Seongju, which has had a 3.6% inflation rate (I think) compared to the previous year, has suddenly raised prices without any prior notice, and at the same time, labor costs have also risen. This kind of Seongju behavior is common in developed countries.

Japan has to kneel down and beg to raise prices by 10% after maintaining them for 20 years , so it's clearly wrong...

Well, this is getting to be a political discussion, so I'll stop here.