Shortages caused by refusal to raise prices
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Shortages caused by refusal to raise prices
If this topic has already been discussed elsewhere on this forum, sorry for the duplication.
Basically, I think stores keep selling out of certain items simply because they refuse to raise the prices on those items to properly balance supply and demand. The predictable result is empty shelves.
Is this because the store managers never learned the law of supply and demand in high school economics, or because they don't want the inevitable negative PR and accusations of "price gouging" that would result from pricing their items to balance supply and demand?
Basically, I think stores keep selling out of certain items simply because they refuse to raise the prices on those items to properly balance supply and demand. The predictable result is empty shelves.
Is this because the store managers never learned the law of supply and demand in high school economics, or because they don't want the inevitable negative PR and accusations of "price gouging" that would result from pricing their items to balance supply and demand?
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Re: Shortages caused by refusal to raise prices
Tough one. Ever go to a shrink ray grocery website? Catalogs all items that have been reduced in size but same cost. “New look, same great taste” is a giveaway. One pound pasta, now 14 oz. one pint ice cream, 14 oz. one gallon ice cream not a gallon. And so on.
But off topic sort of. That is hidden inflation. What you are questioning I don’t think any retailer can do that and not get slammed in this case.
But off topic sort of. That is hidden inflation. What you are questioning I don’t think any retailer can do that and not get slammed in this case.
Re: Shortages caused by refusal to raise prices
Meaning people prefer empty shelves with low prices to stocked shelves with higher prices.Cortopassi wrote: ↑Mon Mar 30, 2020 5:22 pmWhat you are questioning I don’t think any retailer can do that and not get slammed in this case.
Re: Shortages caused by refusal to raise prices
The positive way to look at it is that for many products supply is not fixed. They can make more to meet increased demand, but it takes time to ramp up manufacturing and fill the supply chain. That's why things like cleaning supplies were impossible to get for a few weeks but now are a lot more common. Demand didn't die down. Supply just finally caught up.
IMO, not jacking up the price in the meantime while millions are losing their jobs is a good thing. I'd much rather stores deter hoarders by limiting purchases rather than pricing essential items out of reach for most people.
Re: Shortages caused by refusal to raise prices
Same at my local stores. Yet they are still consistently selling out of TP and various other paper and cleaning products. The rationing may be helping somewhat, but it still isn't preventing them from consistently selling out.
What about the supply of TP and hand sanitizer? The supply of those items still hasn't caught up in most places. And my local grocery store is still consistently selling out of most beef and chicken as well.Tyler wrote: ↑Mon Mar 30, 2020 6:20 pmThe positive way to look at it is that for many products supply is not fixed. They can make more to meet increased demand, but it takes time to ramp up manufacturing and fill the supply chain. That's why things like cleaning supplies were impossible to get for a few weeks but now are a lot more common. Demand didn't die down. Supply just finally caught up.
When someone has just lost their job, I tend to think that not allowing them to buy an item at any price (empty shelf) is crueler than letting them buy the item at a higher-than-usual price.
- dualstow
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Re: Shortages caused by refusal to raise prices
I overheard an older woman asking a grocery clerk about the availability of some items. The clerk said “We’re only ordering essential items right now.” Which makes sense. This morning, half of the items I wanted were just cleaned out: canned stews, canned tuna, pasta, lactose-free milk and a few other things. Bare shelves in all these areas.
Most of what I did find was the crappiest version or an unknown brand.
At least there were vegetables.
Some of that may have been my timing. My wife went to a different store today, an hour earlier, and found it fully stocked as if the hoarders don’t go there.
We’re both afraid to go to our beloved Trader Joe’s, because there are just too many shoppers there. Maybe in 2021.
Most of what I did find was the crappiest version or an unknown brand.
At least there were vegetables.
Some of that may have been my timing. My wife went to a different store today, an hour earlier, and found it fully stocked as if the hoarders don’t go there.
We’re both afraid to go to our beloved Trader Joe’s, because there are just too many shoppers there. Maybe in 2021.
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Re: Shortages caused by refusal to raise prices
What I find the most hilarious thing is that whenever you go to the Ramen isle without fail it's sold out of every flavor BUT shrimpdualstow wrote: ↑Mon Mar 30, 2020 7:02 pmI overheard an older woman asking a grocery clerk about the availability of some items. The clerk said “We’re only ordering essential items right now.” Which makes sense. This morning, half of the items I wanted were just cleaned out: canned stews, canned tuna, pasta, lactose-free milk and a few other things. Bare shelves in all these areas.
Most of what I did find was the crappiest version or an unknown brand.
At least there were vegetables.
Some of that may have been my timing. My wife went to a different store today, an hour earlier, and found it fully stocked as if the hoarders don’t go there.
We’re both afraid to go to our beloved Trader Joe’s, because there are just too many shoppers there. Maybe in 2021.
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Re: Shortages caused by refusal to raise prices
Yeah, but it also stops a lot of people from eating.
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Re: Shortages caused by refusal to raise prices
I know you meant to type ‘aisle’, but what a pleasant thought. It there were a Ramen Isle I’d vacation there.
Well my wife doesn’t know anything about investing, but she quietly bought rubbing alcohol, paper products and especially ramen before people started getting a little nutty.
She bought the ramen in bulk online. It is the cat’s favorite open-top cardboard box to date.
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Re: Shortages caused by refusal to raise prices
When I was last out, two weeks ago tomorrow, that was also the last day I bought food. I'd asked someone working there about the zero frozen vegetables available that day. He told me the whole store had been wiped out the prior Friday. Except for the fruit and vegetables section (where I do almost all my regular food shopping). The most health promoting food in the entire place!dualstow wrote: ↑Mon Mar 30, 2020 7:02 pmI overheard an older woman asking a grocery clerk about the availability of some items. The clerk said “We’re only ordering essential items right now.” Which makes sense. This morning, half of the items I wanted were just cleaned out: canned stews, canned tuna, pasta, lactose-free milk and a few other things. Bare shelves in all these areas.
Most of what I did find was the crappiest version or an unknown brand.
At least there were vegetables.
Some of that may have been my timing. My wife went to a different store today, an hour earlier, and found it fully stocked as if the hoarders don’t go there.
We’re both afraid to go to our beloved Trader Joe’s, because there are just too many shoppers there. Maybe in 2021.
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
Re: Shortages caused by refusal to raise prices
Haha, yeah the Ramen Isles sound like my kind of place!dualstow wrote: ↑Mon Mar 30, 2020 7:17 pmI know you meant to type ‘aisle’, but what a pleasant thought. It there were a Ramen Isle I’d vacation there.
Well my wife doesn’t know anything about investing, but she quietly bought rubbing alcohol, paper products and especially ramen before people started getting a little nutty.
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Re: Shortages caused by refusal to raise prices
Anyone for the islets of Langerhans?
DNA has its own language (code), and language requires intelligence. There is no known mechanism by which matter can give birth to information, let alone language. It is unreasonable to believe the world could have happened by chance.
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Re: Shortages caused by refusal to raise prices
I’m in agreement with the other two people who have already +1’ed Trader Joes’ solution of limiting items to 2 per customer. If it’s Lamborghinis we’re talking about, raise prices. Groceries during a crisis caused by an exogenous event, nah.
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Re: Shortages caused by refusal to raise prices
Is Trader Joe's managing to keep TP on their shelves right now? I'm genuinely curious to know.
Right, you've already established that you'd rather a person be given an empty shelf with a lower price than a stocked shelf with a higher price. That was my signal that the discussion couldn't last much longer since it wasn't based on logic.
Re: Shortages caused by refusal to raise prices
I don't have a source, but I saw a reference this last week to an Italian store with a clever middle-ground idea. Roughly explaining it from memory:
1st bottle of hand sanitizer: $5
Every bottle after the 1st: $150
Anyone can buy as many as they want.
1st bottle of hand sanitizer: $5
Every bottle after the 1st: $150
Anyone can buy as many as they want.
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Re: Shortages caused by refusal to raise prices
As I stated very clearly, we haven’t been going there.
Don’t be a dick. It’s unbecoming.Right, you've already established that you'd rather a person be given an empty shelf with a lower price than a stocked shelf with a higher price. That was my signal that the discussion couldn't last much longer since it wasn't based on logic.
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Re: Shortages caused by refusal to raise prices
Regarding the idea of rationing like Trader Joe's and also Tyler's example above: It sounds great, and it probably does help, but in practice it's quite easy to game the system. A family of five (or six, or seven...) can enter the store separately and each buy the max amount of the limited item to get much more than their family is supposed to.
In fact, I suspect a lot of that is already happening, which is why things like TP and hand sanitizer are still hard to find even at the self-rationing stores.
In fact, I suspect a lot of that is already happening, which is why things like TP and hand sanitizer are still hard to find even at the self-rationing stores.
I'll make you a deal: I'll stop being a dick if you stop being dismissive and flippant by introducing a Lamborghini analogy in a thread about grocery prices.
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Re: Shortages caused by refusal to raise prices
(Sorry, Saul’s on, so I’ve only been peeking during the commercials)
I’m sure that’s going on and I thought of it, too, but I doubt that makes a dent. The policy still stops a single person from going in and clearing out the entire supply of something, like that guy and his brother did across several states before reselling it at exorbitant markup and ultimately, after being shamed, donating some of it.
I’m sure that’s going on and I thought of it, too, but I doubt that makes a dent. The policy still stops a single person from going in and clearing out the entire supply of something, like that guy and his brother did across several states before reselling it at exorbitant markup and ultimately, after being shamed, donating some of it.
I’m in agreement with the other two people who have already +1’ed Trader Joes’ solution of limiting items to 2 per customer. If it’s Lamborghinis items that people don’t need for survival that we’re talking about, raise prices. Groceries during a crisis caused by an exogenous event, nah.
I'll make you a deal: I'll stop being a dick if you stop being dismissive and flippant by introducing a Lamborghini analogy in a thread about grocery prices.
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Re: Shortages caused by refusal to raise prices
On my resume I'm putting knowledge of the law down.
Better Call Saul seasons 1 to 5. That's got to be at least half a law degree there.
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Re: Shortages caused by refusal to raise prices
Thanks, that's a step in the right direction.dualstow wrote: ↑Mon Mar 30, 2020 8:15 pmI’m in agreement with the other two people who have already +1’ed Trader Joes’ solution of limiting items to 2 per customer. If it’s Lamborghinis items that people don’t need for survival that we’re talking about, raise prices. Groceries during a crisis caused by an exogenous event, nah.
Now, would you be so kind as to answer the following question seriously, without dismissiveness or humorous deflection?
During a crisis caused by an exogenous event, which is preferable regarding an item people need for survival: (a) An empty shelf with a low price, or (b) a stocked shelf with a higher-than-normal price?
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Re: Shortages caused by refusal to raise prices
That actually seems like wisdom of Solomonic proportions!
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Shortages caused by refusal to raise prices
What percentage of families are actually of that size? And, of that percentage, how many would be sufficiently organized to pull it off? Are they all paying cash? Shuffling the family credit card to young children to use?Tortoise wrote: ↑Mon Mar 30, 2020 8:06 pmRegarding the idea of rationing like Trader Joe's and also Tyler's example above: It sounds great, and it probably does help, but in practice it's quite easy to game the system. A family of five (or six, or seven...) can enter the store separately and each buy the max amount of the limited item to get much more than their family is supposed to.
In fact, I suspect a lot of that is already happening, which is why things like TP and hand sanitizer are still hard to find even at the self-rationing stores.
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Shortages caused by refusal to raise prices
Is the premise behind a) that 1) people are hoarding or stocking up 2) resellers are buying in anticipation of reselling at a higher price somewhere down the line and b) takes care of each?Tortoise wrote: ↑Mon Mar 30, 2020 8:49 pmThanks, that's a step in the right direction.dualstow wrote: ↑Mon Mar 30, 2020 8:15 pmI’m in agreement with the other two people who have already +1’ed Trader Joes’ solution of limiting items to 2 per customer. If it’s Lamborghinis items that people don’t need for survival that we’re talking about, raise prices. Groceries during a crisis caused by an exogenous event, nah.
Now, would you be so kind as to answer the following question seriously, without dismissiveness or humorous deflection?
During a crisis caused by an exogenous event, which is preferable regarding an item people need for survival: (a) An empty shelf with a low price, or (b) a stocked shelf with a higher-than-normal price?
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."