Japan Companies To Increase Prices:

 Article Source:

 https://mainichi.jp/english/articles/20221127/p2g/00m/0bu/018000c

Ideas:

Its not a surprise that companies are considering increasing prices.For a long time companies were reluctant to increase prices and maybe they were afraid to lose too many customers.

Maybe at this time, the weak yen as just pushed material costs too much and now they have no choice. As before they probably absorbed the increased costs, but now maybe its too much for many companies.

23 percent are thinking about price increases while 49 are undecided, which indicates still many companies might be reluctant to increase prices.

Again, if the yen had not depreciated as much but shipping and material costs had risen in normal way, maybe companies wouldn't be considering prices hikes.

As prices have increased the highest since 1982, its inevitable that there are going to be some price hikes. For example 13 percent said they haven't raised prices, while 29 percent said they had once, while those who increased prices prices twice were 14 percent. 

Those who increased prices four times were at 3 percent and those who did five or more time were at 4 percent. 

Also of note, of the companies that increased prices, they could only expect to retrieve 70 of the increased costs, which means They know they are not going to get a full return on the increased costs.

For example one company president said its inevitable that there will be decrease in sales volume.

The same company plans to increase prices by more than 20 percent,which of that 20 percent increase in prices the company might get maybe 14 percent return in their price increases.

With regards to wage increases, only 6 percent plan on increasing wages because of the higher commodity prices, while companies thinking of wage increased stood at 18 percent, and 3 percent said they are not going to increase wages.

The survey said 30 percent  are not sure of wage increases while 33 percent didn't say what they are going to do .

There were 107 companies in the survey, so that is a very small or respondents who plan to increase wages despite the pleadings of Prime Minister Kishidas pleading for companies to increase wages.

Many companies might be thinking about wage increases and or they would like to increase wages, but because their profit margins are too thin to think about it.

And or perhaps Japanese companies are too concerned with shareholders these days and not so concerned with employees. 

Eventually the market might have something about as some companies begin to offer good salary increases and and or they understand in order to keep good employees they have to offer wage increases on a timely manner.

Have a nice day and be safe!