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monkey44

Cape Cod, MA and Central Fla

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Posted: 06/06/22 10:00pm Link  |  Quote  |  Print  |  Notify Moderator

When a company invests in improvements and raising prices, that's a little different than raising rates, and doing no upkeep or improvements. THen take the extra profits to the bank, and clients get nothing extra for the extra fee.

The latter reminds me of the word Greed...


Monkey44
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Cummins12V98

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Posted: 06/07/22 08:06am Link  |  Quote  |  Print  |  Notify Moderator

monkey44 wrote:

When a company invests in improvements and raising prices, that's a little different than raising rates, and doing no upkeep or improvements. THen take the extra profits to the bank, and clients get nothing extra for the extra fee.

The latter reminds me of the word Greed...


So you sell widgets and you have a big stockpile that sell for let's say $100 and now the market supports selling that same widget for $150 you are going to keep selling at $100???????


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wapiticountry

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Posted: 06/07/22 08:34am Link  |  Quote  |  Print  |  Notify Moderator

monkey44 wrote:

When a company invests in improvements and raising prices, that's a little different than raising rates, and doing no upkeep or improvements. THen take the extra profits to the bank, and clients get nothing extra for the extra fee.

The latter reminds me of the word Greed...
And this is why businesses should never give raises to employees. The day after the raise they will be doing exactly the same work they were doing before. Giving a raise does nothing but put money in the employees bank accounts and the employer gets nothing but higher payroll costs. Increasing income should be outlawed for both businesses and employees because it is just another term for greed.

valhalla360

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Posted: 06/07/22 09:06am Link  |  Quote  |  Print  |  Notify Moderator

wapiticountry wrote:

And this is why businesses should never give raises to employees. The day after the raise they will be doing exactly the same work they were doing before. Giving a raise does nothing but put money in the employees bank accounts and the employer gets nothing but higher payroll costs. Increasing income should be outlawed for both businesses and employees because it is just another term for greed.


I assume you were being sarcastic but....

The market will sort things out.
- In the very short term... If you give them a raise, true, they are doing the same week last friday as this monday but making more money.
- But in the long term, if you are underpaying, the quality employees will be offered higher paying jobs and leave. You will be left with the lower quality employees and unable to hire new ones.

Likewise, if owners are pricing campsites too high, the market will punish them because no one will use their services.
- This doesn't mean the park needs to run at 100% occupancy. A price that keeps the park at 70% occupancy may be more profitable (and nothing wrong with that).
- Right now, there is a spike in demand. When that subsides, prices may settle back down (or more typically, they will hold steady for a long period while the rest of the market catches up).
- Another possibility if prices are too high, is it will drive others to build RV parks. It's tough to buy and develop beachfront land into an RV park at $20/n rates. But if the local parks are charging $200/n, you might be able to build a new park at $100/n rates undercutting the competition.

I always shake my head after hurricanes when politicians go on about gouging but taking bottled water as an example:
- If prices are not allowed to rise, the first people into the store buy more than they need (it's cheap and doesn't go bad). Then those that arrive later have no water to buy. There is no incentive for the store to pay a premium to ship more water in.
- If they are allowed to charge $20/case, the first people in buy only what they need because it's expensive. Now the existing supply, is available to more people. In addition, at $20/case, it may be worth sending one of the stock boys north out of the affected area to buy a couple pallets of water for $3/case, so you can resell them at $20/case, so even more water is available to those who need it. Very quickly, the supply catches up with demand and prices subside.


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nickthehunter

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Posted: 06/07/22 10:32am Link  |  Quote  |  Print  |  Notify Moderator

I don't know why you want to keep talking common sense like supply and demand. Don't you know trigger words, like greed, are more fun to read and respond to.

Grit dog

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Posted: 06/07/22 11:19am Link  |  Quote  |  Print  |  Notify Moderator

nickthehunter wrote:

I don't know why you want to keep talking common sense like supply and demand. Don't you know trigger words, like greed, are more fun to read and respond to.


Bingo!
And what is sad, is I generally regard the generation before me (which most of the members on this board are part of) as good hard working folk.
When I see old folks pander and play the victim card and get “triggered”, I feel sorry that they are not only not helping themselves, but setting a poor example for those coming up under their care or influence.


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wapiticountry

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Posted: 06/07/22 11:31am Link  |  Quote  |  Print  |  Notify Moderator

valhalla360 wrote:

wapiticountry wrote:

And this is why businesses should never give raises to employees. The day after the raise they will be doing exactly the same work they were doing before. Giving a raise does nothing but put money in the employees bank accounts and the employer gets nothing but higher payroll costs. Increasing income should be outlawed for both businesses and employees because it is just another term for greed.


I assume you were being sarcastic but....

The market will sort things out.
- In the very short term... If you give them a raise, true, they are doing the same week last friday as this monday but making more money.
- But in the long term, if you are underpaying, the quality employees will be offered higher paying jobs and leave. You will be left with the lower quality employees and unable to hire new ones.

Likewise, if owners are pricing campsites too high, the market will punish them because no one will use their services.
- This doesn't mean the park needs to run at 100% occupancy. A price that keeps the park at 70% occupancy may be more profitable (and nothing wrong with that).
- Right now, there is a spike in demand. When that subsides, prices may settle back down (or more typically, they will hold steady for a long period while the rest of the market catches up).
- Another possibility if prices are too high, is it will drive others to build RV parks. It's tough to buy and develop beachfront land into an RV park at $20/n rates. But if the local parks are charging $200/n, you might be able to build a new park at $100/n rates undercutting the competition.

I always shake my head after hurricanes when politicians go on about gouging but taking bottled water as an example:
- If prices are not allowed to rise, the first people into the store buy more than they need (it's cheap and doesn't go bad). Then those that arrive later have no water to buy. There is no incentive for the store to pay a premium to ship more water in.
- If they are allowed to charge $20/case, the first people in buy only what they need because it's expensive. Now the existing supply, is available to more people. In addition, at $20/case, it may be worth sending one of the stock boys north out of the affected area to buy a couple pallets of water for $3/case, so you can resell them at $20/case, so even more water is available to those who need it. Very quickly, the supply catches up with demand and prices subside.
Absolutely being sarcastic. Even in disaster scenarios price gouging has been limited to essential items. While you could make the case a park quadrupling prices in a hurricane ravaged area is price gouging, a park that makes that same increase in rates year over year in a place that is not a disaster area, but rather a tourist attraction is doing nothing wrong. Previous costs or pricing has nothing to do with current prices. I don’t think anyone would argue a person who was selling the home should base that price on what they paid for it. I mean should someone who paid $400,000 3 years ago be allowed to get a much higher price than the guy selling an identical house next door because that next door guy inherited the house from ancestors who homesteaded, built that home themselves and actually got that property for free. I have never seen a park or any other business hold a gun to the customer’s head demanding they pay or else. Many things have had enormous price increases recently and I don’t believe geeed is the primary motivation.

DallasSteve

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Posted: 06/07/22 12:00pm Link  |  Quote  |  Print  |  Notify Moderator

nickthehunter wrote:

I don't know why you want to keep talking common sense like supply and demand. Don't you know trigger words, like greed, are more fun to read and respond to.

A lot of the comments show a lack of understanding of basic economics. I had 2 semesters of Economics on the way to a degree in Accounting. Supply and demand is like gravity; it never sleeps, it never takes a vacation.





time2roll

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Posted: 06/07/22 12:21pm Link  |  Quote  |  Print  |  Notify Moderator

So what is better.... a low cost campground I can never get into or paying a higher price and have some availability?


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monkey44

Cape Cod, MA and Central Fla

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Posted: 06/07/22 02:12pm Link  |  Quote  |  Print  |  Notify Moderator

Taking advantage and gouging during a tragedy or catastrophe is pure greed, no matter how anyone can try justifying raising prices beyond normal conditions.

Running a successful business under normal economic conditions will support raises to employees who help make that company successful.

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