Paying for the business losses
Almost every business and service has been asking for reliefs for their losses during the lockdown . own the line, as they restart their work, they will have to bear the cost of implementing the new security restrictions. Ultimately it will be the end user/customer of the product or service who will be compensating them for their losses and probably more profits. This is how it might happen:
Manufactures will increase their prices, especially the FMCG and other products which they know that consumers commonly buy. And retail prices will also increase. So, the customer will have no choice but to pay the increased amount or else do without the product.
Same for Services, like maintenance, health, hotels, education travel etc.
We have already started seeing this. In Bangalore, long distance private bus operators have jacked up their prices by 3 to 4 times the normal. The state road transport corporation has given their buses to private bus operators on hire, instead of running it themselves at normal fares. So, both the state corporation and the private bus operators are winners. Those who want to travel, especially the migrant laborers either have decided not to go or have taken loans to pay the bus charges.
Then, our pest control person, who used to charge Rs. 1000 for a visit, is now charging Rs. 4000.
Government services will follow suit.
So, consumers beware. more
Manufactures will increase their prices, especially the FMCG and other products which they know that consumers commonly buy. And retail prices will also increase. So, the customer will have no choice but to pay the increased amount or else do without the product.
Same for Services, like maintenance, health, hotels, education travel etc.
We have already started seeing this. In Bangalore, long distance private bus operators have jacked up their prices by 3 to 4 times the normal. The state road transport corporation has given their buses to private bus operators on hire, instead of running it themselves at normal fares. So, both the state corporation and the private bus operators are winners. Those who want to travel, especially the migrant laborers either have decided not to go or have taken loans to pay the bus charges.
Then, our pest control person, who used to charge Rs. 1000 for a visit, is now charging Rs. 4000.
Government services will follow suit.
So, consumers beware. more
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View all 17 comments Below 17 comments
Business means making profit by whatever means possible. Who pays? Customer have to pay. Nothing new. more
Dec 24
Most of the business runs on "Supply and Demand" principle.The Charges are based on that.Normally no businessman will like to do the business with loses unless he is forced to do it.Or may find some sense in getting rid of existing inventory and buy new inventory.So that he can improve sale/profit.Most of the businessman makes optimum use of such circumstances.Even what was not liked by public all these years is also being sold in the name of Lockdown. more
May 08
I agree that we should buy only the necessities but what if those items are being priced way above the MRP. What do we do then. We have to eat basic food, buy soap, washing powder, oil, etc. and if these are going to cost dearer then what will the common man do. The government has failed in its attempts to contain the virus. Mumbai and Pune should have sprayed all places with the hydrocholorine solutions and the migrant population should have been allowed to go home in the first place not after 40 days! There should have been no slums, but the government allowed it and now we the common people have to suffer. more
May 05
Can it be avoided in toto - A big NO. Kindly go the advise given by Om Bhadada that everyone has to change to be low profile and aspire only for the necessities at least in short term as hopefully many new entrants and industries in luxury items shall jump to produce essential items leading to meet the supply gap and things should be normal in mid term. more
May 04
Who is going to monitor these malpractices? Moreover who cares of same? Even Govt owned railway has started taking premium long before in the shape of premium and tatkal. During festival season everyone is charged by twice or thrice more than normal days for going one place to other. Airlines charges are not hidden to anyone. Which authority is caring till date; hence no one is going to do so even now. In present situation MSME - a low profit earning, self employed or most job creating sector - has to pay full salary, interest and power bills when they were have no earning, now why not they try to compensate their earnings? more
May 03
