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Message
re: Price gouging laws predictably lead to shortages
Posted on 8/31/17 at 12:35 pm to Ace Midnight
Posted on 8/31/17 at 12:35 pm to Ace Midnight
quote:
The IRS can be relatively generous in these situations - let the store take a huge inventory loss in these cases and store owners can just give food and water away
Wouldn't that be shifting the costs onto other taxpayers?
This post was edited on 8/31/17 at 12:36 pm
1
Posted on 8/31/17 at 12:48 pm to tigerfoot
quote:
Most of these stores arent directly impacted by the storm and in most cases it is business as usual receiving and selling goods. Yes, down the road prices may increase if rail is shut down, ports are shut down for bringing in goods, etc...but that isnt what this is referencing and the govt gouging laws do not prohibit raising your price as your costs change that I know of.
Business owners do not have a crystal ball to tell them if their supply will be reduced in the future or if already reduced when it will return to normal, pricing decisions have to be made based on what is known at the present time. Many stores during Katrina closed once everything was sold and did not reopen for months if ever. The money they made up to the storm was all they were gong to make for months yet they were still responsible for paying their bills after the storm, something that those people who say they will remember who was gouging once the disaster over seem to not understand.
Posted on 8/31/17 at 12:49 pm to weagle99
quote:
Wouldn't that be shifting the costs onto other taxpayers?
It is, but buying emergency supplies at cost, with no other expenses associated with storage, transportation and distribution is a pretty good deal.
Most of the actual cost will be picked up by the insurer - which is shifting the cost onto other policy holders (as it should be).
Like I said, you can't do that all the time, but you can make extraordinary gestures during extraordinary times.
Posted on 8/31/17 at 1:31 pm to RogerTheShrubber
quote:Reduced supply and reduced demand isnt always the time to raise prices.
So you don't think with a reduced supply and possibly a reduced customer base, raising prices is sometimes necessary to be able to keep the doors open?
Posted on 8/31/17 at 1:43 pm to EA6B
quote:I have been in distribution for forever, if these folks in disaster prone areas have not secured the needed supplies to run their businesses do we really want to reward them for their incompetence.
Business owners do not have a crystal ball to tell them if their supply will be reduced in the future or if already reduced when it will return to normal,
My best customers across my entire customer base never have issues, they pay attention, they negotiate early, they pay on time or early, and they are prepared for storms and other disasters.
If you are talking about a storefront that is having to be abandoned because of evacuations or reduced population centers, I dont think one time corrections on 1x inventory are going to make a hill of beans difference. The hay is long ago in the barn.
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