Part of the problem is they are having to make more pennies due to the fact the Zinc Copper ones are self destructing themselves when exposed to things like water when the copper clad gets damaged. They would like have just as good luck with going to the steel/tin version. They switched to the zinc to save upfront costs but it is proving to be a costly decision. Also people stop using pennies for decorations would also help.
Another is that inflation has gotten into everything. I mean things are nearly 5x what it was back in the early 2000's.
But if we eliminate the pennies then everyone would have to adjust in a very expensive way. Every piece of software out there would have to re-written to round to the nearest 5 cents instead of the nearest penny. With most taxes being rounded up to a nickel as the government won't stand for the lost of income themselves.
Otherwords if you buy something that costs 10 cents you be paying 15 cents because they are wanting their sale taxes. This would be a major problem for small transactions as how do we account for paying in sales taxes collected if we have a lot small transactions. I for one do have quite a few small when it comes to hardware. I already have to collect excess taxes on items under $1. The software would have to be adjusted to collect excess taxes on items under $5 to offset the rounding on just those amounts. Even that won't fully collect the owed taxes if they start rounding to the 5 cents level for the sales tax.
What we need is deflation so we lower the cost of everything. Greed is what causing most of the inflation. There is no reason a screw that cost a couple cents to sold for $5 by some of our OEMs. This is why I buy hardware such as screws closer to the source eliminating a lot of the middle men and pass the savings along to my customers. Maybe I should be buying a screw for $0.20 and selling it for $3.50 too.
It is like the Donaldson air filter canister I brought this week places like JD, Kohler, Kawasaki, Briggs, among others are charging well over $100 for them when I got them for $60 or the rain caps for these canisters being $35+ from these OEMs when I got them for $16. The cheapest OEM listed above was JD at $130 for the canister and the lowest for rain caps was Kawasaki at $29. It is everybody wanting to double their money on items that is major problem.
Another example is the seats I got from Sears in July that were $90 that now $180 less than six month later. Pure greed is the factor I'm luckily my distributor is still $90 each for that particular seat. I did have to change the mounting bracket but I am not paying over $300 for a seat for my riding mower I rather just strap on a couple foam chair cushions when I mow.
And if think you think inflation was bad in the past just wait for what is now in the pipeline; unless, the economy crashes a lot worst than in the late 2000's. I see what is coming and have been preparing for it for some time but some of you are so deep in debt it going really bad for you. Credit card debit right now is at record high with a lot the cards charging nearly 30% and some store cards are charging 36%. But I am not the only one that has been preparing as home sales were at there lowest last year since the great recession of the late 2000's.
Even the price files I recently updated my system had huge price increases in the last three months. Very few items went down in price nearly everything went up. So much so that my $85,000 (retail) inventory three months ago is now over $102,000 if I sold everything at list.
That is over a $17,000 increase. One thing I am doing this year is that I am eliminating the 10% discount for senior and military customers as replacement costs are thru the roof. I could sell an item for $15 today but have pay $20 to replace it tomorrow.
