|
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 Christmas 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 starting buying
by the dozen again. Now, transpose
this analogy to the gasoline industry.
What
if everyone only bought Rs 200.00 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
friends. Just Rs 200.00 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 ..... let us put an end to
oil rich countries fleecing the poor and developing countries
|