Thursday, April 24, 2008

Rice rationed

Reuters " Sam's Club, a chain owned by retail giant Wal-Mart, announced Wednesday it was placing a limit of four 20-pound (nine-kilogram) bags per person for imported jasmine, basmati and long grain white rices as a "precautionary step."

"This temporary cap is intended to ensure there is plenty of rice for all our members," said Sam's Club, which has 600 stores across the United States, adding that the measure did not apply to smaller bags of rice."

From a buisness point of view, this doesn't seem to make sense, limiting your sales. Still, if your waiting for demand to rocket, then you can hold the rice and sell it at a premium.
Good for stockholders and those willing to buy it at that price, anyways.

It's a self-enforced rationing, not government. I can take my economic flamethrower and mosey on else where.

Still, it's not helping public opinion any in regards to this economic situation. Note, not downturn. :D

And yes, I did take that picture. No, I don't know whats in it.


FAICA Soldier said...

Almost every business seems to think it makes sense. Department, grocery, hardware, etc stores need to focus all their attention on 2 things: impulse buys and keeping you coming back. They are always worried that a store with out of stocks is a store you won't return to. They probably make next to nothing on the rice but risk losing long term customers if the shelves can't be kept full.

SolaMeanie said...

As to the bag . . . "Someone Set Us Up the Bomb," or "All Your Base Are Belong to Us."

As to the rationing, mix speculation, people overseas buying huge quantities of our produce and then hoarding, plus panic fanned by negative news stories, and you have a recipe for lots of, ahem, fun.

As Steely Dan once sang . . .

When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road
When Black Friday falls you know it's got to be
Don't let it fall on me