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Barbing • yesterday at 9:35 PM • 1 reply • view on HN

Wonder the margins on those $9 boxes of Cheerios at major California grocers.

They did promise to increase the cost of breakfast a couple years ago.


Replies

to11mtm • yesterday at 10:33 PM

Well, for whatever it's worth, I think the closest manufacturing facility for those would be in Iowa. They had a plant in California but it closed in 2015.

AKA, the decade where everyone bought way too much into the 'Just do JIT supply chain for the manufacturing location to warehouse tail and pretend we are Amazon' bullshit.

I put it that way because it is short-sighted to not consider that transportation costs will always increase over time (i.e. fuel prices, wages of drivers) and shipping a final product over that long of a distance (i.e. at least half of the country, and instead of shipping grain to process it is finished boxes which is less efficient for volume) and yet they made that choice.

Where it got nasty is that when the average consumer base decided it was fine to pay dealer markups on cars because of the parts issues that industry saw from their JIT shortsights, everyone saw dollar signs instead of a problem to fix.

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