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It seems some people promote price gouging because they thought the laws against it is some kind of "lefty" thing. Here in Florida, GOP is in full control of making and abolishing State laws, and they are firmly against price gouging, having seen it add to the misery of the storm victims.
They are selling water in Houston for $99.00 per case, so there are people who are forced to drink flood water instead. In other places price gouging has prevented people from evacuating, or sleeping under a roof in a motel. Thankfully there are laws in Florida against price gouging when there is a natural disaster.
First off, the hurricane is an act of God, if anyone is forced to drink flood water it's because of naturally occurring circumstance not because a business refused to provide below market value water which it has ABSOLUTELY NO OBLIGATION to do.
Second, if people are paying $99 for a case of water it's because there is no other water available. If that water were $10 a case, the first person in line would snap it up, not the most needy. The person who needs the water the most will pay the hundred for the water or trade a good or service of equal value. That is an efficient market. If you have artificial price controls the less needy hoard all the supplies and the really hard up are drinking your flood water because THERE IS NO WATER AVAILABLE AT ANY PRICE
Nobody has incentive to ship water? What? If that is the case then WHY DO THEY DO IT? The truth is that they can't wait to re-stock because demand is through the roof. This is the reality. Where are you getting this idea they wont restock unless they can charge $99? I ask, because it sure is not from the real world. I have been through many hurricanes to know better.
On the other hand, if they can charge $99 for water, then why bring in more, when you are making a fortune without restocking? If supply runs low, just raise the price to $199, and then $299, and then $399.
I never said it has to be $99 for the companies to have incentive.
That's up to the companies to decide.
Why keep restocking? Because they aren't stupid. If the demand is high, you bet your behind that the competitors will eat into their market.
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
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Quote:
Originally Posted by BlakeJones
First off, the hurricane is an act of God, if anyone is forced to drink flood water it's because of naturally occurring circumstance not because a business refused to provide below market value water which it has ABSOLUTELY NO OBLIGATION to do.
Second, if people are paying $99 for a case of water it's because there is no other water available. If that water were $10 a case, the first person in line would snap it up, not the most needy. The person who needs the water the most will pay the hundred for the water or trade a good or service of equal value. That is an efficient market. If you have artificial price controls the less needy hoard all the supplies and the really hard up are drinking your flood water because THERE IS NO WATER AVAILABLE AT ANY PRICE
I believe in first come first serve, rather than charging prices that almost nobody can pay 😒
Then explain why stores replenish their stock as soon as they can, when you insist they have absolutely no incentive of doing so unless they can price gouge.
Why keep restocking? Because they aren't stupid. If the demand is high, you bet your behind that the competitors will eat into their market.
You said they have no incentive. Worse, you said they would not sell anything, even if they had stock, and instead simply watch you die.
That is YOUR argument, but it never occurs in real world.
Quote:
In the real world, when you implement price control,
1. People would just watch your dehydrated person die rather than sell the water.
2. Nobody has any incentive to ship water to you. More people die.
3. Nobody has any incentive to stock up water before the disaster. Even more people die.
And yet, that IS NOT what happens. It other words you are WRONG.
You said they have no incentive. Worse, you said they would not sell anything, even if they had stock, and instead simply watch you die.
That is YOUR argument, but it never occurs in real world.
And yet, that IS NOT what happens. It other words you are WRONG.
Of course, I am right. Whether or not a company restock, it depends on whether or not they can make a profit. If they can make enough profit to justify restocking, they will do it at whatever price it is.
These posts reek of misinformation and a lack of understanding as to how a capitalistic system works.
Quote:
Originally Posted by lifeexplorer
I don't think anybody is arguing with that, but price fixing or control is still stupid and hurts people.
Companies should choose what they want to do with their products. If Company A is selling water for $99/bottle and B is giving for free, nobody would buy from Company A. So it works great!
For the last time, we are talking about a DISASTER AREA... not a run of the mill day down at the fresh market. When Company B runs out of water, and citizens cannot afford the water from Company A one of two things will happen. 1.) People will die or 2.) (the more likely one) people will loot and/or kill the store owner to survive. What good did trying to gouge prices do? There is no scenario where it works for a business owner in a disaster.
Quote:
Originally Posted by lifeexplorer
First of all, I didn't compare that to hoarding houses.
In the real world, when you implement price control,
1. People would just watch your dehydrated person die rather than sell the water.
2. Nobody has any incentive to ship water to you. More people die.
3. Nobody has any incentive to stock up water before the disaster. Even more people die.
But you are totally OK with that as long as you aren't paying $99/bottle.
1.) Wrong.... People who don't price gouge are more apt to help their community.
2.) Wrong again... The incentive for a company to ship in supplies is twofold. A) They have provided a humanitarian service to a community, B) They are marketing for themselves by putting their name out there (think of Budweiser during Katrina when they began canning water instead of beer). These are tax write offs for the companies. They aren't losing money.
3.) Wrong again.... Stores stock up because they are providing for their community, continuing to maintain their gross margins (not trying to artificially boost them), and positioning themselves in the market as the go-to store in the future.
Quote:
Originally Posted by Rakin
Anytime I go to a concert or sporting event I pay $5 for a bottle of water, an $8 hot dog and a $12 beer.
What's the difference?
Overall a regular store should treat their customers well.
The difference is that you have the CHOICE to do that. If you don't like the price, you can go somewhere else and grab a beer and a hotdog. In a disaster you are often stuck with minimal options available to you and have no option to go elsewhere for your necessities. Have you ever been in a disaster? I lived through multiple hurricanes (Andrew and Ivan come to mind first) and a few instances of extremely violent tornadic events in North Alabama and it is extremely difficult to navigate without adding price gouging to the list of problems.
Quote:
Originally Posted by lifeexplorer
Of course, I am right. Whether or not a company restock, it depends on whether or not they can make a profit. If they can make enough profit to justify restocking, they will do it at whatever price it is.
Again, you haven't learned anything.
You should really go spend some time with business owners. While profit is the name of the game, most business owners also want to be responsible owners who look out for their community. Without that community, there is no business. Most understand this dynamic and support it however they can. They understand that a quick dollar today could backfire on them for years to come. Again, YOU haven't learned anything.
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