Nice Logic - It May Work!!
A man eats two eggs each morning for breakfast. When he goes to the Kirana store he pays Rs. 12 a dozen. Since a dozen eggs won't last a week he normally buys two dozens at a time. One day while buying eggs he notices that the price has risen to Rs. 16. The next time he buys groceries, eggs are Rs. 22 a dozen.
When asked to explain the price of eggs the store owner says, "The price has gone up and I have to raise my price accordingly". This store buys 100 dozen eggs a day. He checked around for a better price and all the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business. The huge egg farms sell 100,000 dozen eggs a day to distributors. With no competition, they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on.
As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there. He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily. Nothing had changed but the price of eggs.
Then week before Diwali the price of eggs shot up to Rs. 40 a dozen. Again he asked the grocery owner why and was told, "Cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up. Expect the same thing at Christmas and other times when family cooking, baking, etc. happen.
This pattern continues until the price of eggs is Rs. 60 a dozen. The man says, "There must be something we can do about the price of eggs".
He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs.
Finally, the man suggested only buying what you need. He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs.
Maybe wouldn't need any all week.
The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks.
At the egg farm, the chickens just kept on laying eggs. To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price.
The distributor said, " I don't have the room for the eggs even if they were free". The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again.
The grocery store owner said, "I don't have room for more eggs. The customers are only buying 2 or 3 eggs at a time. Now if you were to drop the price of eggs back down to the original price, the customers would start buying by the dozen again".
The distributors sent that proposal to the huge egg farmers but the egg farmers liked the price they were getting for their eggs but, those chickens just kept on laying. Finally, the egg farmers lowered the price of their eggs. But only a few paisa.
The customers still bought 2 or 3 eggs at a time. They said, "when the price of eggs gets down to where it was before, we will start buying by the dozen."
Slowly the price of eggs started dropping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers.
The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for. Anyway, they had full warehouses and wouldn't need eggs for quite a while.
And those chickens kept on laying.
Eventually, the egg farmers cut their prices because they were throwing away eggs they couldn't sell.
The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price.
And the customers started buying by the dozen again.
Now, transpose this analogy to the gasoline industry.
What if everyone only bought Rs 300.00 worth of Petrol each time they pulled to the pump? The dealer's tanks would stay semi full all the time. The dealers wouldn't have room for the gas coming from the huge tanks. The tank farms wouldn't have room for the petrol coming from the refining plants. And the refining plants wouldn't have room for the oil being off loaded from the huge tankers coming from the oil fiends.
Just Rs. 500.00 each time you buy gas. Don't fill up the tank of your car. You may have to stop for gas twice a week, but the price should come down.
Think about it.
Also, don't buy anything else at the fuel station; don't give them any more of your hard earned money than what you spend on gas, until the prices come down..."
..just think of this concept for a while.
.................please pass this concept around....reaching out to
the masses...the world...
From India, Mumbai
158A man eats two eggs each morning for breakfast. When he goes to the Kirana store he pays Rs. 12 a dozen. Since a dozen eggs won't last a week he normally buys two dozens at a time. One day while buying eggs he notices that the price has risen to Rs. 16. The next time he buys groceries, eggs are Rs. 22 a dozen.
When asked to explain the price of eggs the store owner says, "The price has gone up and I have to raise my price accordingly". This store buys 100 dozen eggs a day. He checked around for a better price and all the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business. The huge egg farms sell 100,000 dozen eggs a day to distributors. With no competition, they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on.
As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there. He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily. Nothing had changed but the price of eggs.
Then week before Diwali the price of eggs shot up to Rs. 40 a dozen. Again he asked the grocery owner why and was told, "Cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up. Expect the same thing at Christmas and other times when family cooking, baking, etc. happen.
This pattern continues until the price of eggs is Rs. 60 a dozen. The man says, "There must be something we can do about the price of eggs".
He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs.
Finally, the man suggested only buying what you need. He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs.
Maybe wouldn't need any all week.
The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks.
At the egg farm, the chickens just kept on laying eggs. To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price.
The distributor said, " I don't have the room for the eggs even if they were free". The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again.
The grocery store owner said, "I don't have room for more eggs. The customers are only buying 2 or 3 eggs at a time. Now if you were to drop the price of eggs back down to the original price, the customers would start buying by the dozen again".
The distributors sent that proposal to the huge egg farmers but the egg farmers liked the price they were getting for their eggs but, those chickens just kept on laying. Finally, the egg farmers lowered the price of their eggs. But only a few paisa.
The customers still bought 2 or 3 eggs at a time. They said, "when the price of eggs gets down to where it was before, we will start buying by the dozen."
Slowly the price of eggs started dropping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers.
The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for. Anyway, they had full warehouses and wouldn't need eggs for quite a while.
And those chickens kept on laying.
Eventually, the egg farmers cut their prices because they were throwing away eggs they couldn't sell.
The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price.
And the customers started buying by the dozen again.
Now, transpose this analogy to the gasoline industry.
What if everyone only bought Rs 300.00 worth of Petrol each time they pulled to the pump? The dealer's tanks would stay semi full all the time. The dealers wouldn't have room for the gas coming from the huge tanks. The tank farms wouldn't have room for the petrol coming from the refining plants. And the refining plants wouldn't have room for the oil being off loaded from the huge tankers coming from the oil fiends.
Just Rs. 500.00 each time you buy gas. Don't fill up the tank of your car. You may have to stop for gas twice a week, but the price should come down.
Think about it.
Also, don't buy anything else at the fuel station; don't give them any more of your hard earned money than what you spend on gas, until the prices come down..."
..just think of this concept for a while.
.................please pass this concept around....reaching out to
the masses...the world...
From India, Mumbai
Dear Roshini...
Appreciate your effort and thanks for your wonderful post. However logically if the person buys a dozen eggs at a time, then he doesn't have to buy for the whole week, still it would have the same effect, wouldn't it? Maybe your logic does work in some other way which couldn't be explained in the easy way but I am not having any idea about it, though I'll try and follow this.
From India, Madras
Appreciate your effort and thanks for your wonderful post. However logically if the person buys a dozen eggs at a time, then he doesn't have to buy for the whole week, still it would have the same effect, wouldn't it? Maybe your logic does work in some other way which couldn't be explained in the easy way but I am not having any idea about it, though I'll try and follow this.
From India, Madras
Thanks for your nice logic
but think in difference way,
instood of purchase of eggs for a week, to purchage daily what the time u have loose
if you go to shop for eggs every day u will purchase other items also those are not essential to u
I want to share one small indecent which is witnessed by me :
There is a bangle stores near my house, one lady is the owner of the stores
i am visited the shop one day evening and observed her business tactics
she has to delay while taking cash for purchase and acting little busy with phone or other
activity and told the customer wait a few seconds with pleasing personality . after that they have go to inside the shop and came with other items, then she make bill and send them with same pleasing voice.
This was observed at my first incident and observed several times.
Every time she applied the same logic and get more business
after reading your article the story came to my mind and I want to share the same here
If we visit the shops several times no doubt we will purchase other items which are not necessary to us.
Please share your views on this
regards
Kalijanni
From India, Guntur
but think in difference way,
instood of purchase of eggs for a week, to purchage daily what the time u have loose
if you go to shop for eggs every day u will purchase other items also those are not essential to u
I want to share one small indecent which is witnessed by me :
There is a bangle stores near my house, one lady is the owner of the stores
i am visited the shop one day evening and observed her business tactics
she has to delay while taking cash for purchase and acting little busy with phone or other
activity and told the customer wait a few seconds with pleasing personality . after that they have go to inside the shop and came with other items, then she make bill and send them with same pleasing voice.
This was observed at my first incident and observed several times.
Every time she applied the same logic and get more business
after reading your article the story came to my mind and I want to share the same here
If we visit the shops several times no doubt we will purchase other items which are not necessary to us.
Please share your views on this
regards
Kalijanni
From India, Guntur
Hi ,
Happy X-Mas and Advance Happy New Year to all...
Can any body give the comparison between 300 Tons Polyester Endless round sling and Endless Wire Rope Sling, like Self Weight of Sling / meter length , Factor of Safety, Reference standard, Grade,etc ...
From India, Surat
Happy X-Mas and Advance Happy New Year to all...
Can any body give the comparison between 300 Tons Polyester Endless round sling and Endless Wire Rope Sling, like Self Weight of Sling / meter length , Factor of Safety, Reference standard, Grade,etc ...
From India, Surat
Roshni
Wonderful post and thought process.
I feel that..
All logical formulas do not apply everywhere. But we need to keep trying in order to get the results.
All thoughts and ideas below have their other sides.
To visit or not to visit the shop often
To buy or not to buy in more qty
To buy or not to buy at all.
To compare or not to compare prices at different shops
Both options may work best at different situations.
It is very much difficult to define any rule for stopping corruption.
All strategies, policies and implementations work as well as fail . We need to keep trying.
Continuity in efforts is only solution.
Thanks again.
From India, Pune
Wonderful post and thought process.
I feel that..
All logical formulas do not apply everywhere. But we need to keep trying in order to get the results.
All thoughts and ideas below have their other sides.
To visit or not to visit the shop often
To buy or not to buy in more qty
To buy or not to buy at all.
To compare or not to compare prices at different shops
Both options may work best at different situations.
It is very much difficult to define any rule for stopping corruption.
All strategies, policies and implementations work as well as fail . We need to keep trying.
Continuity in efforts is only solution.
Thanks again.
From India, Pune
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