What's your take on this?

[celticfish]

dear forummers,

i just found out some rather upsetting news, at least i feel so.
there's a recent order of some rare fish that LFS A got .
what i found out was LFS B got someone to get a dozen from LFS A.
then put them in their shop for 18.29% premium from LFS A.
i'm a firm believer of free markets but this takes the cream!!!
so whats your take on a situation like this?
free market/caveat emptor or basic ethics?

Mods if you think this thread is inflammatory please delete it.
but i would like to hear views of fellow forummers, if possible.

P.S. to "potect" all parties i will not reveal any names. i'd just like to hear view from all. however i do "feel" for LFS A though...

[michael lai]

I find nothing wrong with that. If B buys from A and sell at 18.9% discount, that I would find unsettling but only from a retailer's perspective. Free market! LFS also get from farm to sell to hobbyists.

[celticfish]

now that you mentioned it michael...
the stock came from a local fish farm.
which was why i was perturbed.
why not get the stock from the farm too?

[bossteck]

Perhaps the trip from the farms and the introduction of the fishes into the display tank acts as a filtering process to weed out the weaker fishes.

So what you get from LFS A are the healthier/hardier pieces?

[Nicky]

This is no difference from any business right? Buy from a business and sell at a mark-up. So don't see anything wrong with that.

[neon]

Normally the farms do not entertain walk-in or individual. They are more on bulk sales and regular business.

[celticfish]

i have no issues with buy and sell.
but i was wondering why LFS B didn't get the stock from the local fish farm.

[Goondoo]

i have no issues with buy and sell.
but i was wondering why LFS B didn't get the stock from the local fish farm.

cant secure minimum quota? lazy? no lobang? who cares.

Buy stuff as you think the price is fair. After which, let it go... else you will be disturbed for the rest of your life because the price of IT hardwares is changing everyday and the screen you are using now won't be your last too.



Why bother about why and how other do business? If everyone would take from the cheapest source, soon you will post why LFS keep closing down....

[celticfish]

hahaha...true.
long time no hear GD!
have you been lurking in the background?

[AquaObsession]

dear forummers,

i just found out some rather upsetting news, at least i feel so.
there's a recent order of some rare fish that LFS A got .
what i found out was LFS B got someone to get a dozen from LFS A.
then put them in their shop for 18.29% premium from LFS A.
i'm a firm believer of free markets but this takes the cream!!!
so whats your take on a situation like this?
free market/caveat emptor or basic ethics?

Mods if you think this thread is inflammatory please delete it.
but i would like to hear views of fellow forummers, if possible.

P.S. to "potect" all parties i will not reveal any names. i'd just like to hear view from all. however i do "feel" for LFS A though...

if you are firm believer of free market forces, this should not trouble you at all.

Let me refresh the main points of the free market economy
Profit motive, private ownership of property, and freedom of choice among the most important one.

LFS A buys from local farm and sell to retail customers. It makes profit from the capital invested. Customers get products from their own choice.

LFS B sells product bought from LFS A. It makes profit, LFS A makes profit from initial sales, and customers, given they are informed and free to make own choice, will walk out with goods.

Over time, under the assumptions of perfect information in the marketplace, customers will go to the LFS which selll the cheapest after factoring transport costs and cost opportunity costs.

So, if you are a firm believer of the market economy and feel for LFS A, review your stand again. If you feel for LFSA, then you are most likely to fix price or rather allow for only one shop to sell.

You will be surprised of how many LFS get thier product from other LFS to save costs from direct ordering if they are not buying in bulk.

Maybe the intent of LFS A in the first place was to bring the fish and did consider of LFS as part of its customers niche.

Well, this was my contribution.

Cheers, Christophe
(I love econs and politics, welcome for further discussion)

[celticfish]

adam smith must be your guru dude!!
i agree totally on the salient points of a free market.

also, good points on LFS purchasing from one another.
in a free market shouldn't there be a willing seller and a willing buyer?
so it should be open but why a have a front to buy?
i think this was the crux of point i was trying to make.

oh oh... i think i'm threading on the E and M words!!!
yes yes... just leave is as fact of a free market economy.
willing buyer willing seller and caveat emptor...

[AquaObsession]

If A and B colluded to fix prices, I will feel sad.
If B bought from A and sold at a discount with an intent to capture customer base, and drive A out of business, I will feel sad.
If either A or B achieves monopoly power and charge high prices, I will feel sad.
Btw, all the above are punishable by law.

By caveat emptor, do you mean lack of information on the part of the customers?
If so, yea, this is a problem. This is why some of us who have time to shop came out better, and through words of mouth will spread the information to friends. I shop at C328, NA and a few others, and I have time to go for the cheapest (after factoring transport and shoe-leather costs - my slippers wearing down fast fast)

[Goondoo]

If A and B colluded to fix prices, I will feel sad.
If B bought from A and sold at a discount with an intent to capture customer base, and drive A out of business, I will feel sad.
If either A or B achieves monopoly power and charge high prices, I will feel sad.
Btw, all the above are punishable by law.

Does that applies to LFS only or local Bus and "train" companies as well?

[Goondoo]

hahaha...true.
long time no hear GD!
have you been lurking in the background?

have you been diving in hantu recently?

[Jungle-mania]

Does that applies to LFS only or local Bus and "train" companies as well?

I think you left major portions of the IT industry here too, but then again, when you are the biggest fish in a small pond, smaller fishes will make way for you to fart.

[benlim7171]

This is the invisible hand in the adam smith theory for Free Market. The LFS B could have other attraction which LFS A does not have, such as Location, Customer Base, other unique features that LFS A do not have, therefore warrant LFS B to charge a higher premium. If LFS B does not make it, it will eventually close down and other LFS would take over. This invisible hand of adam smith (guru) is the one behind all these manipulation, so celticfish friend doesn't have to get angry. It is the outcome of the free market movement.

[taygu]

Such practice is actually quite common... as in other industry too. in some industry, they even loan stock..

In this case, LFS B may not have the access to the source or do not have enough buying power to get from the farm. So the only way or better way is to get it from LFS A, I would be upset if LFS B uncut LFS A....

[bossteck]

Now that you mention it...

I was at a provision shop once, when an old indian guy came in and bought at least 10 cartons of various brands / 'version' (as in, menthol, light etc) of cigarettes from the shop.

The shop owner later told me that the indian guy was the owner of the mama shop that was diagonally across the road. And yes, the price of cigarettes at the provision shop was cheaper than that at the mama shop.

oh well...

[cheetf]

If B bought from A and sold at a discount with an intent to capture customer base, and drive A out of business, I will feel sad.

Btw, all the above are punishable by law.

Just curious, can you please tell me why the above is punishable by law?

Unless B has the funds to do so he/she won't last too long.
Also stock was purchased legally.

[kemp]

i agree on cheetf's point too. Don't see any reason why is it punishable by law