Profiteering

[Boozy]

I bought a bottle of alcohol-based hand sanitizer back in the summer to have at work. It cost me about $3.

I bought the same bottle yesterday, and it cost $5.49.

I looked for a different brand. ALL the hand sanitizers had nearly doubled in price.

I would bet my last dollar that stores have jacked up their prices on hand sanitizers since the H1N1 scare began. Now that Health Canada has started officially advising everyone to use them, people will pay higher prices. And stores know it.

I'm wondering if there's a law against this. If there isn't, there should be.

[jackfaire]

I'm wondering if there's a law against this. If there isn't, there should be.

Against what specifically? Prices are determined by demand. Saying companies can't charge more when their product is in higher demand doesn't make sense to me.

They aren't making it so expensive that people can't afford it they are simply increasing their profit margin by increasing the price on something everyone wants. If no one wanted it the price would be very low to entice people to buy it anyway.

[Tanasi]

I bought a bottle of alcohol-based hand sanitizer back in the summer to have at work. It cost me about $3.

I bought the same bottle yesterday, and it cost $5.49.

I looked for a different brand. ALL the hand sanitizers had nearly doubled in price.

I would bet my last dollar that stores have jacked up their prices on hand sanitizers since the H1N1 scare began. Now that Health Canada has started officially advising everyone to use them, people will pay higher prices. And stores know it.

I'm wondering if there's a law against this. If there isn't, there should be.

Could it also be since Health Canada made such a pronouncement and therefore people buying it that maybe just maybe there isn't enough to go around and demand is up. Following basic economic prinicples the limited supply and high demand causes the price to go up. Nahhhhh it's gotta be a conspiriacy.

[Nyoibo]

Profiteering only really applies to an essential commodity and is usually the result of a monpoly or collusion (which is a bitch to prove).

[Slytovhand]

Ummm - hang on... aren't you in a Capitalist Economic system???? Now I'm confused!

[crashhelmet]

The rules of Supply and Demand do apply, but I would think that there would be limits up there, just as we have down here in the US. Price gouging is illegal down here, although not always enforced due to politics.

The US Government hinted at hitting up Exxon-Mobile for price gouging when they were charging an arm and a leg for gas, yet posting record breaking profits in the billions a few years ago. Exxon-Mobile said something along the lines of "Come after us and see what we do then." Nothing ever happened, but thankfully gas prices went down.

Ironically, hypocritically, douchebagally (sp?) The US Government jacked up the costs of Passports and Passport renewals after demanding that everyone have one for border crossing post 9/11.

CH

[jackfaire]

Usually though their profit margin has to go over a certain limit before it could be considered price gouging otherwise anytyhing that makes a profit at all would be considered price gouging.

[draggar]

You think that's bad? We buy vitamin C on a regular basis.

Last year - a 500 count, 1000mg capsule (swallowed) cost less than $10.

Now, I saw them at Publix for $25.

And they say price gouging is illegal.

[Fryk]

How do we know that whoever supplies the hand sanitzer manufacturers with the ingredients didn't raise THEIR prices?

[draggar]

Usually though their profit margin has to go over a certain limit before it could be considered price gouging otherwise anytyhing that makes a profit at all would be considered price gouging.

There's a fine line between making a profit and price gouging.

Raising prices solely on the fact that there's an emergency (like gas just before a hurricane) is gouging but isn't that also the point of supply and demand (demand goes up so prices go up, too).

People will pay it so they'll charge it.

(And when this post is approved, just merge it with my other one please since I can't edit my unapproved posts yet).

[jackfaire]

There's a fine line between making a profit and price gouging.

Raising prices solely on the fact that there's an emergency (like gas just before a hurricane) is gouging but isn't that also the point of supply and demand (demand goes up so prices go up, too).

People will pay it so they'll charge it.

Honestly Swine Flu is a perceived emergency. I don't know anyone directly, indirectly or even friend of a friend who has had it.

This to me doesn't point to an emergency. People perceive an emergency so they go out and buy the thing they think they need.

I agree in a real emergency you could consider it price gouging. However making more money because people will buy your product is not.

[Greenday]

Honestly Swine Flu is a perceived emergency. I don't know anyone directly, indirectly or even friend of a friend who has had it.

I do. My best friend from home had it. Four of my friends at college had it. It's not the world-ending emergency people are making it out to be, but it's on the top of the list of current medical threats.

[Nyoibo]

There's a fine line between making a profit and price gouging.

Raising prices solely on the fact that there's an emergency (like gas just before a hurricane) is gouging but isn't that also the point of supply and demand (demand goes up so prices go up, too).

People will pay it so they'll charge it.

That is profiteeringif the supply isn't affected and there's enough to meet demand then it has no effect on supply and demand.

[Rapscallion]

I would bet my last dollar that stores have jacked up their prices on hand sanitizers since the H1N1 scare began.

Probably more likely that the manufacturers added a little extra, the wholesalers added a little extra, and the stores added a little extra.

Rapscallion

[mikoyan29]

I'm more concerned about all these hand santizers wiping out the weak bacteria and leaving us with super bacteria. We have people wiping down carts in the store now. And it wouldn't surprise me if we found out that over santizing is bad because the body doesn't get the chance to build up anti-bodies to fight the really nasty stuff.