Price gouging in Florida

[Belsnickel]

Just saw this on the news. If anything should be labeled as deplorable this year, this is it.

http://www.nbc-2.com/story/33336596/1800-floridians-file-price-gouging-complaints-during-matthew

Saw images of gas up to over $9 a gallon, hotel rooms increased too 200%, case of bottled water didn't even look like a 24 pack) was $30.96. State AG is investigating it all because it is illegal, especially on a state of emergency.

[GMDino]

(10-07-2016, 09:26 AM)Belsnickel Wrote: Just saw this on the news. If anything should be labeled as deplorable this year, this is it.

http://www.nbc-2.com/story/33336596/1800-floridians-file-price-gouging-complaints-during-matthew

Saw images of gas up to over $9 a gallon, hotel rooms increased too 200%, case of bottled water didn't even look like a 24 pack) was $30.96. State AG is investigating it all because it is illegal, especially on a state of emergency.

They are just taking advantage of the current market.  It makes them very, very smart and good businessmen.   



No, no.  I kid.  They are awful people who reflect all that is wrong with humanity.  

[*michaelsean*]

I don't know how people expect to even get away with that. Hopefully the names of the companies become well known, and nobody ever patronizes them again.

[GMDino]

(10-07-2016, 09:32 AM)michaelsean Wrote: I don't know how people expect to even get away with that.  Hopefully the names of the companies become well known, and nobody ever patronizes them again.

Because people will patronize them again when they have lower prices.

In our industry I had a great customer (this was 10 years ago) that was getting 100% screwed by one of my competitors because there was a shortage in of our product.  EVERYONE'S prices had gone up, but in this case the supplier was sticking to my customer because he wasn't a big buyer and he wanted to sell to the bigger company that had more money.  So he would charge them more, take longer to get him the product and/or just not deliver for months.

We took care of the situation because we had done business with them for years before all this happened too.

My customer cursed that other guy every time I talked to him.

As soon as the market stabilized (and actually got bad for a few years) my customer went right back to the guy who screwed him because they turned around and undercut our pricing (as it was going back down) by a few dollars.  He still complained about the quality and all the same problems he had...but hey..he save a couple bucks per product.

To this day it pisses me off.

But just like I won't gouge anyone I won't kiss their ass and lose money just because the other guy will.

For too many people they don't care how they are treated as long as they can save a buck.  So they'll forgive and forget and next time get screwed again.

[Benton]

(10-07-2016, 09:37 AM)GMDino Wrote: Because people will patronize them again when they have lower prices.

In our industry I had a great customer (this was 10 years ago) that was getting 100% screwed by one of my competitors because there was a shortage in of our product.  EVERYONE'S prices had gone up, but in this case the supplier was sticking to my customer because he wasn't a big buyer and he wanted to sell to the bigger company that had more money.  So he would charge them more, take longer to get him the product and/or just not deliver for months.

We took care of the situation because we had done business with them for years before all this happened too.

My customer cursed that other guy every time I talked to him.

As soon as the market stabilized (and actually got bad for a few years) my customer went right back to the guy who screwed him because they turned around and undercut our pricing (as it was going back down) by a few dollars.  He still complained about the quality and all the same problems he had...but hey..he save a couple bucks per product.

To this day it pisses me off.

But just like I won't gouge anyone I won't kiss their ass and lose money just because the other guy will.

For too many people they don't care how they are treated as long as they can save a buck.  So they'll forgive and forget and next time get screwed again.

Who knew the wholesale sex toy market was so competitive?


As to the OP, if you take away a company's ability to grossly overcharge for a product, you take away their First Amendment rights. Free speech says I can say "you owe my $16 for this bottle of water" if I think you'll pay it.

[GMDino]

(10-07-2016, 10:48 AM)Benton Wrote: Who knew the wholesale sex toy market was so competitive?


As to the OP, if you take away a company's ability to grossly overcharge for a product, you take away their First Amendment rights. Free speech says I can say "you owe my $16 for this bottle of water" if I think you'll pay it.

That market at least never has a bad year due to the global economy! 

I have a broker that while working in our industry also owns a beer distributor.  He says when times are good people drink beer...and when times are bad people drink beer.

[NATI BENGALS]

I would say it is unethical. I dont see why it would be illegal though. Supply and demand. Isnt that what they teach in econ 101? High demand low supply. Price goes up.

[Benton]

(10-07-2016, 11:39 AM)NATI BENGALS Wrote: I would say it is unethical. I dont see why it would be illegal though. Supply and demand. Isnt that what they teach in econ 101? High demand low supply. Price goes up.

My stance on price gouging has changed a bit the last few years.

We've had some unexpected bad winters. At least two snowfalls that pretty well shut down my area each year for 3-5 years. And right before it happens, you can't get into a gas station because everybody has a generator and everybody has 17 gas cans they "have" to fill up to make it 2-3 days in case the power goes out. And you can't get into a grocery because everyone can't go 2-3 days with 4 gallons of milk, 70 bottles of water, 12 lbs. of bacon, 10 bags of Lay's, and four loaves of bread.

It goes back to the ice storm we had a decade or so ago. People were unprepared because we didn't normally have weather like that. So their answer now? Hoard. Make sure you get all the gas, water, food, etc., in case you have to go 10 hours without Netflix or a bacon and mayonnaise sandwich. Which strains the rest of the network.

I don't agree with 4-5 times increases, but I'm a lot less against doubling prices.

[*wildcats forever*]

(10-07-2016, 09:26 AM)Belsnickel Wrote: Just saw this on the news. If anything should be labeled as deplorable this year, this is it.

http://www.nbc-2.com/story/33336596/1800-floridians-file-price-gouging-complaints-during-matthew

Saw images of gas up to over $9 a gallon, hotel rooms increased too 200%, case of bottled water didn't even look like a 24 pack) was $30.96. State AG is investigating it all because it is illegal, especially on a state of emergency.

Price gouging laws aside (whatever they may be). it's the consumer that drives the issue every bit as much as the vendor. Mega storms bring hysteria with them and the crowd plays along by fighting over that last loaf of bread. Those that complain about the gouger then return to do business with them afterwards is just another sign of life in America. It's all about the dollar.

[*michaelsean*]

(10-07-2016, 12:10 PM)Benton Wrote: My stance on price gouging has changed a bit the last few years.

We've had some unexpected bad winters. At least two snowfalls that pretty well shut down my area each year for 3-5 years. And right before it happens, you can't get into a gas station because everybody has a generator and everybody has 17 gas cans they "have" to fill up to make it 2-3 days in case the power goes out. And you can't get into a grocery because everyone can't go 2-3 days with 4 gallons of milk, 70 bottles of water, 12 lbs. of bacon, 10 bags of Lay's, and four loaves of bread.

It goes back to the ice storm we had a decade or so ago. People were unprepared because we didn't normally have weather like that. So their answer now? Hoard. Make sure you get all the gas, water, food, etc., in case you have to go 10 hours without Netflix or a bacon and mayonnaise sandwich. Which strains the rest of the network.

I don't agree with 4-5 times increases, but I'm a lot less against doubling prices.

Yeah I always like when people run out before a snowstorm.  First of all, the massive storm usually doesn't develop, and secondly, I can't remember it ever being more than 24 hours after a storm where the main roads are not only snow/ice free, but completely dry, and the smaller streets are easily passable. 

[GMDino]

(10-07-2016, 01:49 PM)michaelsean Wrote: Yeah I always like when people run out before a snowstorm.  First of all, the massive storm usually doesn't develop, and secondly, I can't remember it ever being more than 24 hours after a storm where the main roads are not only snow/ice free, but completely dry, and the smaller streets are easily passable. 

Worse part is if it falls on our normal shopping day and we're buying TP, Milk, Bread, etc and everyone is staring us down!  LOL!

[Rotobeast]

I'm kind of torn on this issue and I think it hinges on the type of and size of the business.
If it's a guy with a large store selling shingles (and gouging) after the storm, the I feel them to be an opportunist.

If it's a small mom & pop grocery store, I can forgive it.
With the small store, it is essentially a surplus for the grocer and their loved ones.
They are gambling by selling that commodity, so I can see the price going up to compensate for lesser peace of mind.

Sent from my SM-S820L using Tapatalk

[JustWinBaby]

I'm not so sure about the hotels - I travel a lot, and I frequently see 100% increases in rates during peak periods. Even 1-2 star hotels going for $200-$300 a night. Part of that is taking advantage of the "price insensitive" Mon-Thurs business traveler. But the other way of looking at it is if the hotel has 1 room left, and someone with the money is willing to pay $500 for the night then why shouldn't it be somewhat of a bidding process?

The other stuff WOULD be justified if the price increases had the desired outcome of rationing limited supplies. But I'm not sure it does, and it's hard to ever say $5 for a bottle of water (that isn't Fiji ) isn't gouging.

[*TheLeonardLeap*]

Obviously $31 for a $4 case of water is ridiculous, but there is supply and demand. If they kept it at the normal price, some A-Hole will buy it all, the store will be sold out, and that A-Hole will be selling cases of bottled water out the back of his truck for $10-20.

So I don't mind if stores raise prices a little in the case of a hurricane or something. Afterall, supply lines might be strained or blocked and then the stores have anything to sell.

So yeah, guess I am okay with price raises prior to disasters, but within reason. $4 case of water for $8? Sure. But $31? That's not okay.

[*michaelsean*]

(10-07-2016, 02:18 PM)GMDino Wrote: Worse part is if it falls on our normal shopping day and we're buying TP, Milk, Bread, etc and everyone is staring us down!  LOL!

 Never thought of that.  Like joining a gym on Jan 2.

[Rotobeast]

(10-07-2016, 06:40 PM)JustWinBaby Wrote: it's hard to ever say $5 for a bottle of water (that isn't Fiji ) isn't gouging.

Pfffttt......

It's 2016, drink Voss.

[*Nately120*]

(10-07-2016, 06:46 PM)TheLeonardLeap Wrote: Obviously $31 for a $4 case of water is ridiculous, but there is supply and demand. If they kept it at the normal price, some A-Hole will buy it all, the store will be sold out, and that A-Hole will be selling cases of bottled water out the back of his truck for $10-20.

So I don't mind if stores raise prices a little in the case of a hurricane or something. Afterall, supply lines might be strained or blocked and then the stores have anything to sell.

So yeah, guess I am okay with price raises prior to disasters, but within reason. $4 case of water for $8? Sure. But $31? That's not okay.

That's pretty much the "consumer's fault" side of the coin.  If the apocalypse is coming and you keep cans of corn the same price they are when the world isn't ending, one guy buys all the corn and then you're all like "Woah, save some for everyone else" and he's all either like "No way, I'm going to eat all of this myself!" or "I'll sell it to them instead of you!"

People ruin everything.  The movie The Night of the Living Dead was all about people's insatiable need to fight each other, declare themselves the "leader" greedily snatch up resources, and wreck everything as soon as a panic hits...and you though the ZOMBIES were the monsters!  Tsk tsk.