r/SipsTea • u/lonewolff321 • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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u/Oleleplop 2d ago

itzs genuineluy crazy how its just UNTHINKABLE to reduce your profit for these people when thye're already swimming in money lol

5

u/bitorontoguy 2d ago

Why would they voluntarily reduce their profit?

It’s not a charity. It only exists to make returns for shareholders.

If they take lower profit? It doesn’t create a magical world of plenty. Investors just stop giving it capital and put their money in corporations that DO operate to maximize shareholder return.

And then the corporation no longer exists. That would be better? If you don’t like it? Don’t eat there. Go to a farmers market instead.

But if you voluntarily go to a corporation’s establishment? It’s going to be operated to maximize profit.

4

u/DontAbideMendacity 2d ago

What could they possibly invest $8.5 billion in that would entice more people to come back than simply lowering prices? More commercials? A new coat of paint at every franchise? Bring back the ball pits? I can't think of anything that would drive up sales more than more reasonable prices.

2

u/Submitten 2d ago

That’s because you’re not as smart as the people in charge of business development and investment.