What 3 years ago cost $1....now costs $1.20 to the consumer but to companies also. Part of that was inflated costs coming in and the other part is maintaining a profit margin in higher cost structures. Its not hard to have record profits if youre still making 30% but the initial sale has jumped 20%. Ill simplify the math below

So if a good cost $70 and we sold for $100 = $30 profit/42% Profit Margin

Now to make and distribute my good it costs $90. So to maintain i sell for $127.90. My profit margin remains steady at 42% but my net profit jumped from $30 to $37.90 per unit = record profits....

Nobody discusses maintaining margins they only discuss greed. This example is fictional obviously. So much depends on the type of business, the inventory turn rates, shipping projections, parts procurements. Most companies dont get 42% as put out in my expample. They operate on razor thin margins and have to turn over inventory fast...their loans may be flax interest and have increased. A personal story hubby has a 10 year SBA note we were blessed he took before covid. It carried us through but is non-forgivable. No ppp credits here. It has variable rates. When he took it the monthly payment was $1430. Now its $2047 due to interest rate hikes.

If you are projecting a wild growth year then it msjes sense to keep on pushing. However, if you project a slowdown or even a recession you have to be aware of future projection trends. This means that youre employees got paid more during the boom...so you have to let some go and have those making more earn more during the thin.

We run 4 companies. I can promise that not all decisions are based on greedy ceos.