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Friday, 21 April 2006
'Invisible hand' nowhere to be seen
Here's another one for you absolute believers in the wonders of the marketplace to ponder. In a very peeved mood, I sent this e-mail tonight to the makers of Tofutti non-dairy "ice cream" and related products:
This is extremely frustrating.
I live in West Columbia, SC -- zip code 29169. I have been deathly allergic to milk my whole life. The last time I was skin-tested for it, the allergist called his staff in to see the reaction -- it was that extreme.
I love your product.
I find it almost impossible to get it.
Over the last few years, local supermarkets -- most notably Food Lion and Publix -- have stocked it off and on. Each will have it a few months, it will go away, and then come back maybe a month later.
The nearest Publix ran out several months ago. I keep asking about it, and am told it must be a problem getting it from the distributor.
Fine. My local Food Lion was at least stocking your vanilla (that, and the Vanilla Almond Bark, are my favorites). I make a point of buying out what they have so they will be motivated to keep it stocked; because of me, they never keep a pint of it more than a week. If market forces work as they should, I should never run out, right?
I dropped by there tonight. I saw they had it on sale. Only one pint was left. As I picked it up, I noticed that the sign said "close-out price."
So it's going out of stock there, too.
What is the problem? Why can't your company keep the product in these stores?
One place is left within 10 miles of me that I know of, and I'm worried now it will run out there. A distributor problem is a distributor problem, right? The store in question is 14 Carrot, between here and Lexington. It's really out of my way, but I intend to go there tomorrow and buy whatever they have.
By the way, the other 14 Carrot that your store locator cites (it was the one closer to me) closed several months ago.
And the Rosewood Market you refer to only carries your "cheesecake" products, which I find to be a little too heavy and rich.
I want to buy what you have to sell. Can you help me out here?-- Brad Warthen
You may say, "Hey, they can't keep stocking it for one customer." Well, I wasn't the only customer. I monitored the stock at Food Lion closely enough to be sure of that. And besides, how can a product -- particularly a specialty product such as this -- do better than to sell out within a few days each time it is restocked (I made sure of that, too)?
This is a case in which I keep counting on the market to work. And it keeps letting me down.
Posted by Brad Warthen at 08:08 PM in Business, Economics, Health, Marketplace of ideas, Personal
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Comments
Brad, go to Amazon.com and avoid the sales tax and traffic. Visit Dave's Site!
This stuff sounds pretty tasty, I may have to try it out.
Posted by: Dave | Apr 21, 2006 8:33:34 PM
Hey Dave, how do you order frozen stuff over the Internet? UPS have a refrigerated truck? Just curious.
Posted by: Herb | Apr 21, 2006 8:39:12 PM
I was sort of wondering that myself, Herb. I guess they have a way...
Dave, if you want to try it, I recommend you start with the vanilla or vanilla almond bark. Don't bother with the chocolate. It's pretty bad.
Posted by: Brad Warthen | Apr 21, 2006 8:52:40 PM
Brad,
Good read. I have a similiar "market" problem.
I recently purchased a window air conditioner for a room I have just had finished. It is a room over a garage and I just wanted a simple window unit.
I researched several models and decided on a fairly energy efficient model. Went to the store, they didn' t have it. The rep told me that the newer models weren't as energy efficient. They were close but not as good. No other differences. I asked a few questions and the rep said they had had a lot of requests for the higher efficiency models and actually had a glut of the newer- less efficient models because people weren't interested.
I ended up buying the newer- less efficient model when the rep lowered the price for me to get rid of the newer air conditioner.
Obviously this was just me at one store but I found it odd that a newer less efficient model was being turned down by so many folks but the rep said the manufacturer had decided this was best for them. Strange one indeed.
Market works - a good bit of the time. Sometimes the free market is abused severely by some of the same people that promote it so strongly.
Posted by: David | Apr 21, 2006 10:50:01 PM
They ship in dry ice according to the ship instructions. But you have to have expedited shipments and the charges for that also.
Posted by: Dave | Apr 22, 2006 6:33:27 AM
I have a similar question that is related to the newspaper business. I read The State in the morning (home delivery).
When I go out for lunch in Blythewood, I normally try to grab a copy of USA Today out of one of the newspaper vending boxes
outside any one of the restaurants. What puzzles me is that, more often than not, by noontime there may be only one copy (and frequently no copies) of the paper left in the box.
Maybe I'm just stupid regarding the newspaper business, but wouldn't the smart idea be to increase the number of copies put in each box until you have several days in a row where there's only one or two remaining the next day?
Oh, yeah... TOFUTTI??? In the words of Alfred E. Neumann, "BLECHHHH!" Gimme that Ben & Jerry's Plain Vanilla any day.
Posted by: Doug | Apr 22, 2006 8:05:31 AM
Hey, I'm still waiting for the return of Apple Slice... Surely there's a market somewhere for apple flavored soda.
Posted by: Joshua Gross | Apr 22, 2006 8:14:11 AM
I totally agree, Brad. Everytime I go to the dealership, there are no personal hovercrafts for me to buy. In addition, Wal-Mart never has the teleportation devices I desire.
The market has failed. We need to bring back communism and give it another try.
Posted by: Charlie | Apr 22, 2006 4:54:10 PM
Packed in dry ice? Are you kidding, Dave? I'm sure Brad wants to pay $20 a gallon for ice cream, though gas may be right there with it pretty soon.
Posted by: Herb | Apr 22, 2006 5:53:03 PM
The naive concept of how the free market should work is that it should provide everything that everyone wants, whenever they want to go buy it, at the price they want to pay.
A big store like Food Lion or Publix cannot stock every brand and item. There is intense competition for shelf space, the store wants to turn their inventory, on average, every 4 days. That is why there will still be niche markets for small grocers who specialize in less common, and more expensive products... such as Whole Foods, Fresh Market, and organic stores.
Posted by: Lee | Apr 22, 2006 8:25:27 PM
Lee,
Does this mean I'm not going to get that hovercraft?
Posted by: Charlie | Apr 23, 2006 3:56:00 AM
Herb, if you buy bottled water at a Charlotte Panthers game, water may be at the rate of $20 a gallon. That is how we know we have arrived. haaaaaaaaahaaaaaaa
Posted by: Dave | Apr 23, 2006 5:45:07 AM
"The naive concept of how the free market should work is that it should provide everything that everyone wants, whenever they want to go buy it, at the price they want to pay"
One again, a point missed. At least he is consistent.
and to another point -
I don't think Brad was saying communism is better - just maybe the free market isn't always on the money either.
Posted by: David | Apr 23, 2006 3:47:45 PM
Only the truly ignorant and deluded think that socialism and communism will provide more consumer choice, better quality and lower prices.
Unfortunately, there are still many people who want to believe that the market "fails" when it chooses to not provide the low quantities of speciality items that they want, in every little town and village. If you want soy ice cream in avocado flavor, you might not get it delivered to Sandy Run, SC. You might have to move to Chicago, or the same town as the factory.
Posted by: Lee | Apr 23, 2006 4:38:29 PM
Missing the point again. Closing in on a new world record.
Brad wrote "This is a case in which I keep counting on the market to work. And it keeps letting me down"
Back to Brad..
I think it fails in quite a few areas. It does seem to be better than the alternatives - or most of them.
Posted by: David | Apr 23, 2006 7:26:55 PM
Perhaps if you try to describe a case where the market confounds you, you will begin to understand why you fail to understand how the market works.
Posted by: Lee | Apr 23, 2006 8:54:59 PM
The free market doesn't confound me. Why Libertarians can't seem to elect hardly anyone - well, that doesn't confound me either.
Posted by: David | Apr 23, 2006 10:37:58 PM
The fact that Copernicus was ridiculed, and Archimedes murdered, does not mean their description of the heavens and Earth were nonsense. Libertarianism is tied to the free market because that is the only moral social system producing goods and services and organizing human endeavor.
Posted by: Lee | Apr 24, 2006 8:51:36 AM
David -
You and Brad keep accusing libertarians of complaining all the time, when we are the only ones offering any ideas for comprehensive tax reform. Psycologists label your behavior as "projection" of your own behavior onto others.
If you are unfamiliar with libertarian (and other ) political philosophies, you will be unable to notice how many of those libertarian ideas have be stolen and implemented by the GOP since 1980, even if it is in the naive and shallow attempts of people like Lindsay Graham and the Heritage Foundation.
At least it is in a direction away from the socialism of the New Deal.
Posted by: Lee | Apr 24, 2006 8:57:37 AM
Brad,
I am the VP of Sales for Turtle Mountain, the largest seller of Dairy Free Ice Cream in the US. We would love your business. We are in Publix (under our Purely Decadent brand). If you send me an email with your address I can get you some coupons.
Kevin Brouillette
www.turtlemountain.com
Posted by: Kevin Brouillette | Apr 24, 2006 1:58:18 PM
Kevin, I visited your website and I compliment your company on an attractive website. You are exactly the kind of entrepreneurial spirit that only the free capitalistic market produces. Way to go. That Purely Decadent looks like good stuff.
Posted by: Dave | Apr 24, 2006 7:45:16 PM
There goes the free market, working again, this time to bring boutique ice cream to Columbia.
Posted by: Lee | Apr 25, 2006 8:37:41 AM
"You and Brad keep accusing libertarians of complaining all the time, when we are the only ones offering any ideas for comprehensive tax reform. Psycologists label your behavior as "projection" of your own behavior onto others"
My main complaint with Libertarians is that they can't get elected to city dog catcher or any other position.....
Posted by: David | Apr 25, 2006 9:08:04 PM
Don't you just love the "free market" we have?
Greenville-AP) April 25, 2006 -
An Upstate gas station has sued saying that a competitor's lower per gallon prices at the pump have caused them to lose profits.
Pantry Incorporated owns a gas station in Gaffney. It sued in Cherokee County, alleging that Petro Express had kept prices at two of its Gaffney stations below cost.
With gas prices approaching $3 a gallon in South Carolina, it would seem Pantry's complaint would not get a lot of support outside a courtroom.
But Pantry's suit says its competitor violated South Carolina's Unfair Trade Practices Act. Under the law, motor fuel retailers can't set prices below cost if the purpose is impair competitors.
Pantry says it has lost $160,000. A judge is expected to hear the motion on July 31st
Source: WISTV.com
Posted by: David | Apr 25, 2006 9:53:10 PM
Jersey City elected a libertarian mayor to two terms, who cleaned up the place, then went back to being a full-time citizen.
Libertarianism, like free market economics, is not something to be imposed upon people, like socialism, liberalism, progressivism, or a theocracy. It is an educational movement, to create a more enlightened society of self-governing people.
Posted by: Lee | Apr 26, 2006 7:05:20 AM
