Something to think about, we have been in an economic down turn since 2007. Since then there has been an explosion of loyalty/rewards cards everyone has them. Liberty gas stations, Price chopper, Kwik Joes and the list goes on. The law of supply and demand has been supplanted by subsidies.... Whether they are government issued or self issued, subsidies have been ruling the economic landscape for almost a decade. Yes there are exceptions to the rule, by in large however this truth holds true. Case in point, Dutchs Mkt in Greentown is opening their new gas station in the parking lot of their store. This is a brilliant way to capitalize on their customer base and re-invest their money. Kudos to them for their smart business sense. However their recently posted gasoline prices are the same as the three nearest competitors. Why? because the law of supply and demand does not matter, They too have a loyalty card! by using this loyalty card in their store you will receive a cheaper price at the pump. They are subsidizing their product with another product. Either way they get paid. This is a good marketing ploy and it has proven successful for many corporations large and small. Including Loews and Home Depot. In years past if you wanted customers, you would have to provide a service that no one else does or provide it at a cheaper price. That my friends is true capitalism. However when I, as a contractor, have to pay $10.55 for a 4X8 sheet of 1/2 drywall because of subsidization then you the consumer foots the bill. The way I get work is by lowering my labor cost there for sacrificing my my margin which ultimately leads to a lower standard of living for myself and my family. I have to compete with other contractors who like me do not have a loyalty program =) In short, providing more for less. Subsidization is the standard today and yesterdays capitalism is gasping for its last breath. Todays capitalism is widening the gap between the haves and the have nots, requiring more of the have nots to be subsidized by the government... can you say welfare? Yes todays generation is for the most part lazy, but those who choose to work for an honest days work cannot afford an honest meal or a gallon of gas...... The more people have to spend the more they will spend and therefore stimulate a dead economy. If I were opening a new gas station, I would be 2 cents cheaper a gallon and have the customers spend that savings in my store.... just saying
Posted on: Wed, 26 Mar 2014 12:54:07 +0000
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