Thursday, June 23, 2016

Corporate Greed

I was complaining recently of sticker shock on some small hardware items. It’s easy for companies to make excuses for the higher prices, but the lack of production in this country and having near monopolies on the market encourages many companies to severely gouge the consumer, whether we’re speaking of drugs, food, hardware or other goods.

A case in point is common nails at Lowe’s. From a reliable source, I’ve learned that Lowe’s buys their nails from China at $350 a ton if they buy 25 tons and more. I can’t even imagine them buying ONLY 25 tons EVER, considering the size of their company. That’s about 17 cents a pound. In 30# boxes at $45.43, they get $1.47 per pound. In 5# boxes at $11.98, they get $2.30 per pound. In 1# boxes at $3.87, they get (obviously) $3.87 a pound. Remember, they paid only 17 cents a pound; I’m sure that boxing them didn’t cost $3.70 per box!

If I’m thinking correctly, their mark-up is approximately 850% for 30# boxes, 1350% for 5# boxes and 2000% for 1# boxes. Keep in mind that jewelers used to be considered greedy with a 400% mark-up.

If you look around, you’ll notice that the things people NEED the most, have gone up the most. Now I fully understand and support supply and demand, but I also understand monopolies and GREED! The market will deal with the former. God Almighty will someday deal with the latter! © 2016

No comments: