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Started By
Message
1
Posted on 8/31/17 at 10:53 am to tigerpawl
quote:
Is it not also true you're free to hold the line on pricing?
Yes, however the government should not force you to do this.
Posted on 8/31/17 at 10:54 am to BigJim
quote:
I hope you don't mean a government enforced rule? Because that would be fixing a problem created by government interference with more government interference.
Bravo sir.
Posted on 8/31/17 at 10:56 am to HeyHeyHogsAllTheWay
quote:
ALL they have said is if the price was fifty cents a bottle on Friday , hurricane hits and suddenly you're charging $5 a bottle on Monday, we have a problem.
Why is $2 okay but $5 is not?
Posted on 8/31/17 at 10:57 am to weagle99
quote:
Why is $2 okay but $5 is not?
Because our representatives have decided it is not.
I tend to agree.
Posted on 8/31/17 at 10:59 am to TBoy
No it doesn't. Price gouging helps to prevent jerkoffs from buying 40 cases of water when they only need 2.
Posted on 8/31/17 at 11:01 am to Ace Midnight
quote:
Why? If I cannot make a profit, then I won't engage in commercial activity.
Stores selling at normal prices aren't making a profit during a temporary supply disruption due to a storm?
Posted on 8/31/17 at 11:03 am to cwill
quote:
Stores selling at normal prices aren't making a profit during a temporary supply disruption due to a storm?
Not if their supply dwindles and profits cannot support keeping the doors open.
Higher prices or closed doors?
Posted on 8/31/17 at 11:05 am to HeyHeyHogsAllTheWay
quote:
quote:
Why is $2 okay but $5 is not?
Because our representatives have decided it is not.
I tend to agree.
Posted on 8/31/17 at 11:05 am to HeyHeyHogsAllTheWay
quote:
But the government has NOT said you have to sell water for $1 a bottle. ALL they have said is if the price was fifty cents a bottle on Friday , hurricane hits and suddenly you're charging $5 a bottle on Monday, we have a problem.
And only a complete idiot wouldn't understand that very simple concept. If you are charging 50 cents the day before a hurricane and go to $2 the day after a hurricane nothing will be said. You have not violated the law.
Why is $2.00 a bottle ok and $5.00 a bottle is not, what method was used by the government to determine the acceptable price? Only a idiot would not understand that letting the market determine what a bottle of water is worth will result in the most water being available for everyone.
Posted on 8/31/17 at 11:15 am to weagle99
As someone who took a good bit of economics courses, I can honestly say that I'm fairly against businesses being told what they have to charge. However, human nature in me wouldn't increase prices during a shortage unless I had to (suppliers raising prices for me). Also, there is a strong economic argument against raising prices because these places will almost certainly get destroyed publicly after the storm. Insurance almost certainly covers spoilage of items and possibly loss of revenue. Not worth it to raise in my opinion.
Posted on 8/31/17 at 11:31 am to Ace Midnight
quote:I dont think we are limited to those two scenarios.
do you want a situation where the products are available for sale at a (potentially) "gouging" price or not at all?
Posted on 8/31/17 at 11:34 am to tigerfoot
quote:
I dont think we are limited to those two scenarios.
So, you think during a massive crisis you can just expect "business as usual"? What color is the sky in your world?
Posted on 8/31/17 at 11:35 am to tigerfoot
quote:
I dont think we are limited to those two scenarios.
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 11:38 am to RogerTheShrubber
quote:Only if costs to the retailer are increased. In 90% of these cases the retailer is buying at an agreed upon price from the distributor.
Gouging laws lead to shortages
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.
Posted on 8/31/17 at 11:44 am to Ace Midnight
quote:
So, you think during a massive crisis you can just expect "business as usual"? What color is the sky in your world?
Here's some food for thought. If you're gouging customers who are desperately hungry or thirsty, and if they dont have enough cash to simply pay you, you're much more likely to simply be robbed or looted.
Not only that, but the customers who dont loot you will remember you as the a-hole who tried to screw his customers. Is that a smart business plan?
This post was edited on 8/31/17 at 1:14 pm
Posted on 8/31/17 at 12:10 pm to The_Duke
Charity exists. And decent, morality-bound individuals exists as well.
Y'all act like just because the price is allowed to rise, that everyone will uniformly do it without question. Many store owners will choose to keep their prices stable based on their own notions of right and wrong. Others will maintain stable prices because they don't want to threaten their long-term customer loyalty. And on top of that, many concerned, caring souls will send crates upon crates of charitable donations just because they have the capacity and the heart to do so.
But also allowing for the price of the good to rise, for those who choose to do so, allows more of the product to be shipped into the affected area. Preventing any price rise necessarily means that less product will be available.
Neither side presents a perfect solution obviously. That's the nature of a disaster. But if we're worried about getting water to the highest number of people possible, in the shortest amount of time possible, removing price controls will provide the relatively favorable outcome 100% of the time
Y'all act like just because the price is allowed to rise, that everyone will uniformly do it without question. Many store owners will choose to keep their prices stable based on their own notions of right and wrong. Others will maintain stable prices because they don't want to threaten their long-term customer loyalty. And on top of that, many concerned, caring souls will send crates upon crates of charitable donations just because they have the capacity and the heart to do so.
But also allowing for the price of the good to rise, for those who choose to do so, allows more of the product to be shipped into the affected area. Preventing any price rise necessarily means that less product will be available.
Neither side presents a perfect solution obviously. That's the nature of a disaster. But if we're worried about getting water to the highest number of people possible, in the shortest amount of time possible, removing price controls will provide the relatively favorable outcome 100% of the time
Posted on 8/31/17 at 12:23 pm to NYNolaguy1
quote:
Heres some food for thought. If you're gouging customere who are desperately hungry or thirsty, if they dont have enough cash to pay you, youre much more likely to simply be robbed or looted.
Not only that, but the customers who dont loot you will remember you as the a-hole who tried to screw his customers. Is that a smart business plan?
At least ita up to.the owner.
Hed be better off shutting the doors and let inventory sir
Posted on 8/31/17 at 12:26 pm to NYNolaguy1
quote:
if they dont have enough cash to pay you, youre much more likely to simply be robbed or looted.
Meh - I think the character of the folks coming in determines your getting robbed/looted - but you may have a point to a degree.
quote:
but the customers who dont loot you will remember you as the a-hole who tried to screw his customers. Is that a smart business plan?
Personally, I don't think it is. However, I also see the folly of trying to legislate this away.
Posted on 8/31/17 at 12:30 pm to funnystuff
quote:
removing price controls will provide the relatively favorable outcome 100% of the time
And I would use the tax code, too. 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. Not in every case, of course, but that's a way a business owner can do the right thing and combine insurance and tax breaks to make himself whole in the process.
I recall Katrina - we had our own tractors pulling Wal-Mart trailers - Wal-Mart's position was, we (Louisiana National Guard) would do a better job of getting (mainly these were HBA shipments, as I understand it) this stuff where it needed to be than they could at the time or looters would.
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