Monday, May 14, 2012

Paging Milton Friedman.

Several of the local supermarkets are apparently unfamiliar with the concept of supply and demand.

 

In case you failed economics, demand refers to the quantity of a product desired by consumers at a certain price. Supply represents how much product the market can offer. Price, therefore, is a reflection of supply and demand. Pretty simple.

 

In other words, if you own a store, and you are selling quite a bit of one thing at a certain price, the logical thing to do would be to stock more of the product and perhaps raise the price a bit.

 

Not at the local supermarket, Auchon. Here, if they sell out of something, they seem glad to be rid of it.

 

Sold out of all the cheese? Initial reaction here? Glad to be rid of it… Might be a better business model to consider the reason they are sold out is because the village laowai are desperate for some comfort food and would keep buying it not matter how expensive it is.

 

As of now, we seem to have made our way through the village supply of Stoli and Svedka vodka, almost all cheese and butter, tortilla chips, lemons, and avocados.

 

Some of the guys have complained about the absence of vodka though, so I'm hoping the buyer will get the hint to restock and keep us lowly laowai happy.

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