Minimum Markup Insanity
There’s a basic flaw in the minimum markup law here.
To understand where I’m coming from, let me first say I’m in favor of minimum markups, in principal. They attempt to keep giant chains from undercutting local businesses, driving them out, and then raising prices back up. They don’t always succeed in that endeavor, but they succeed often enough that I feel the benefits of the “tax” (in the form of slightly higher prices) is worth the cost.
But Wisconsin’s law has a design flaw that current gas prices have exposed. It’s based on percentages, a measure that only people who have never run a business and had to set price levels would use. (more…)