TriggerFinger


Supply and Demand, part 3


So I was having a friendly little discussion in the comments on this post about supply and demand and how that interacted with ammo prices.  I thought it was friendly, anyway, but it seems that Reasoned Discourse has broken out.  I'm frankly disappointed.  Here's my final comment that got rejected:

You can bet I would be grateful for $4/rnd ammunition if I didn't have any ammunition and needed some badly.  If I don't need it that badly, and I don't because I have some already, I won't be grateful for it (or mad about it); I just won't buy more at those prices.  Someone else, who doesn't have any laid up against a rainy day, should be grateful to buy some.  By not buying ammunition at the inflated prices, you are reducing demand and sending signals that the price needs to be reduced.

You say I don't want "feedback, consequences, rewards and punishments"; but I haven't said anything like that.  Raising prices in response to demand is feedback and consequences.  It rewards those who can supply the market successfully (by allowing them to make more profit when others are unable to acquire product).  Instead, you want to overlook the consequences for a retailer who has customers coming to his store constantly and not finding the ammunition they were hoping to find, because the only thing that retailer did in response to the demand spike was call in a restock order to his usual supplier.  

I want the retailer to take actions in response to market conditions changing -- trying to obtain more inventory, for example.  If he can only get that additional inventory at higher prices than normal, go right ahead.  Maybe it will sell and maybe it won't -- that's the risk he takes.  It is both reward and punishment.

If I *need* ammunition, I'm willing to pay a premium price for it.  If I don't need it, I'll wait until prices settle.  It's that simple.  I'd like to have that choice available to me -- and reward those vendors who go the extra mile to stock ammunition when it's scarce -- than find myself with money in my pocket when I would rather have cartridges in a magazine.

Of course most people aren't going to come out and cheer for high prices.  Customers want low prices.  They also want to be able to satisfy their demand for products.  They can't always have both.

This entry was published Thu May 30 08:42:12 CDT 2013 by TriggerFinger and last updated 2013-05-30 08:42:12.0. [Tweet]

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