nope.Anybody selling at a price substantially higher than the prevailing price ante could reasonably be presumed to be price gouging.
"Prevailing prices" change with external events--upward and downward.
nope.Anybody selling at a price substantially higher than the prevailing price ante could reasonably be presumed to be price gouging.
I will disagree because ammo has nothing to do with a respiratory illness; people who do not do their due diligence are their own worst enemy and if they willingly exchange their money for goods, there is no gougingThe classic definition of "fair market value" is "the price at which the property would change hands between a willing buyer and a willing seller, both having complete knowledge of the relevant facts and neither being under any compulsion to buy or sell." In a sudden pandemic, everybody lacks knowledge of the extent and course of the disease. And the resultant panic is a form of psychological compulsion. Under these conditions, it's impossible to establish a "fair" price point, and the normal laws of supply and demand don't apply. Anybody selling at a price substantially higher than the prevailing price ante could reasonably be presumed to be price gouging.
Are we talking ammo, toilet paper, wedding dresses, college tuition or all of the above?Anybody selling at a price substantially higher than the prevailing price ante could reasonably be presumed to be price gouging.
Very common, and usually necessary to maintain a positive cash flow.Some merchants raise prices at their pump based on projected price of the next delivery.
Retail motor fuels purchased at the pump is the best common example I can point to. Some merchants raise prices at their pump based on projected price of the next delivery. Those merchants may lose business to other merchants in that area to those who only change the price at the pump when a new order is purchased and delivered. Similarly some merchants may not decrease the price of their current inventory until the next order is purchased and delivered. Again they may lose customers to other merchants that lower the price of current inventory when market pricing indicates the next purchase will be at a lower price.
Egregious examples are pretty easy to spot. Consider a convenience store with low inventory turnover in non-emergency times for items such as disinfectant wipes and toilet paper has a higher price than such items in a supermarket or Walmart for example will typically have a higher shelf price for such items as that store doesn't have the volume purchasing power leverage as the large chains. But if in an emergency that convenience store increases the prices on those items well beyond the same margin of a replacement order cost, that's price gouging.
Agreed. Different organizations have different capacity for surge in those dimensions.Very common, and usually necessary to maintain a positive cash flow.
They have to raise them for the next order if they want to stay in business.
No, it isn't; he is reacting to market supply and demand and by raising his prices to current market demand levels, he will ensure that only those who truly NEED the product will buy it ensuring there will be a supply.
My wife's utility is running into that now buying PPE things like sanitizer for the linemen. 8oz bottles you can buy in the supermarket for $2 normally are being bought in bulk at a discount price of $6/each. Gouging? Not when you feel you have to have it.
I can tell not too many folks have watched that video I posted.........................
I am talking about what I thought was about gas stations; small owners MUST immediately raise their price when they are told a price increase is coming with the next delivery; otherwise, they will not be able to pay for it and make the necessary profit to stay in business.Not necessarily immediately. Large organizations may have significantly greater ability to dampen out variability in cost of supply over time than a smaller organization. Those differences are acutely displayed in economically volatile times and / or commodities with higher than average price volatility which is the reason I chose motor fuels as that example. Personally I haven't seen that same volatility in the price of engine lubricants, motor oils, mirroring the swings in pricing of motor fuels although petroleum whether crude oil or natural gas is used as feedstock. There are numerous fundamental reasons why that point of sale volatility is different.
Resuming quoted post
Does that video demonstrate the example I just illustrated on difference in point of sale pricing volatility of motor fuels vs motor oils? I'm guessing that answer is "No".
They also have to lower the price according to the market, like they are doing right now.I am talking about what I thought was about gas stations; small owners MUST immediately raise their price when they are told a price increase is coming with the next delivery; otherwise, they will not be able to pay for it and make the necessary profit to stay in business.
True, but they lower prices slower than than they raise them because they paid a higher price for the batch in the groundThey also have to lower the price according to the market, like they are doing right now.
I wouldn't be in a hurry to drop prices at my gas station or ammo store but when the guy across the street does....... A free market works every time it is tried.True, but they lower prices slower than than they raise them because they paid a higher price for the batch in the ground
They also have to consider that they paid a higher price for that load in the ground and they need to recoup that to boot.I wouldn't be in a hurry to drop prices at my gas station or ammo store but when the guy across the street does....... A free market works every time it is tried.
While large volume sellers such as Costco, Sam's Club, and Walmart don't necessarily have to do so and can even use motor fuel pricing as a loss leader as it's not their core business.I am talking about what I thought was about gas stations; small owners MUST immediately raise their price when they are told a price increase is coming with the next delivery; otherwise, they will not be able to pay for it and make the necessary profit to stay in business.
Hopefully gun and ammo sellers are recouping some of the losses they suffered not long ago.They also have to consider that they paid a higher price for that load in the ground and they need to recoup that to boot.
But they do; however, their bulk buying allows them to weather to minor changes on a more even basis. Where I live, Sam's is currently $1.749, while a local place is $1.699; Sam's has been fairly stable........the local market more reactive...............While large volume sellers such as Costco, Sam's Club, and Walmart don't necessarily have to do so and can even use motor fuel pricing as a loss leader as it's not their core business.
Why have you repeatedly chosen to ignore that segment and instead focus solely about gas stations with small owners? What purpose does ignoring that reality that serve, video or no video?
Assuming it is a free market than nothing the buyer does though ignorance, panic, or irrational behavior can makes the seller a gouger. .
Where I live both Sam's Club and Costco pump prices are $1.459 / gal RUL. Quik Trip, a recent entrant to my market that had been undercutting even those sellers, is $1.519 / gal RUL. The pricing only goes up from there here in Military City USA, I wonder if we'll still be ranked 7th largest US city by population when the 2020 census results are tallied? A pretty competitive market, but also the only one of its size not yet requiring boutique blended gasoline and the nearest gasoline and diesel focused refinery is 60ish miles away. You can see these prices via Gasbuddy if you plug in 78233 as a starting ZIP code, then go to map view and scroll around the area.But they do; however, their bulk buying allows them to weather to minor changes on a more even basis. Where I live, Sam's is currently $1.749, while a local place is $1.699; Sam's has been fairly stable........the local market more reactive...............