Skip to main content

Simple Logic: Prices of Basic Goods Will COST HIGHER in the Shopping Mall Groceries

I really must laugh and cringe at the stupidity of so-called thought leaders on Facebook. I did name some of them such as Silent No More PH. From a photo of whipped cream to red onions (above). The photos were taken at a mall grocery. I even wonder if the people of Silent No More PH (and since when were they ever silent) ever bother to do a simple supply chain analysis. That's why I wrote an article where I addressed if social media gossipers even know anything about supply chain analysis (read here). It would be idiotic to go to a shopping mall and expect public market (palengke in Tagalog) price levels. 

It's because we have this simple supply chain analysis to think about public markets vs. malls 

ScienceDirect.com


Just think about how the supply chain goes. So, let's think about the suppliers of raw materials. Let's think about one of the unavoidable problems of the gasoline price increase. How many times do I need to tell people that the prices of gasoline are a world market problem? Should the government mandate for subsidy or sell at a loss--gasoline stations will have to shut down because they will become unprofitable. Some social media gossipers say that the war in Ukraine is "just an excuse". Please, if the supply of gasoline from the world market has lowered due to previous low demand--do you think that they can easily process gasoline? Gasoline is transported by well... gasoline. Is it that hard to understand? 

Now, we start to look at the suppliers to manufacturers. Let's start with whipped cream. The ingredients for whipped cream are transported by gasoline. If the prices of gasoline are high then shouldn't the supplier add a markup to make sure they can afford gasoline? Not to mention that the suppliers have other expenses such as salaries, maintenance, and the like. Gasoline will be used in transportation. Higher cost of gasoline means a higher cost of electricity. It's not rocket science to understand that even if one component has a cost increase--the entire supply chain follows. I even wonder if the people behind those pages even bother to examine that?

Why are the prices of goods in the malls higher than in the public market? It's common sense (really) that a public market has lower operating costs. A good example is that an open public market is well, open. That means they spend very little on electricity compared to the shopping mall. Small-scale vendors don't have as many employees as a shopping mall. Meanwhile, a shopping mall has higher maintenance. The rent will be considerably higher than renting a public space. Expenses such as electricity for refrigerators, air-conditioning, lights, longer working hours, more employees, etc. would tell you why prices will be more expensive. If groceries in malls are sold at market prices--can they really pay for their expenses? Did the point-missing social media gossipers even think of that? Then again I wonder how much they even know about business and economics with their posts? Malls are high maintenance so the cost of rent is higher than a public space. The prices are justifiably high because the bills they have to pay are considerably higher.

That's why there are times I prefer to shop for vegetable downtown instead of at the mall. Are these point-missing trolls wanting everything to be handed over to them for free? If that's so then they can expect a deterioration of quality. A fruit and vegetable stand in a public market can sell cheaper due to lower maintenance costs. Meanwhile, to sell fruits and vegetables at a lower cost when you have higher rent due to a higher maintenance commercial space is just foolish. Sure, sales can be high but can the sales produce the money to pay the rent? Do these point-missing trolls ignore some people who are willing to pay a higher cost for convenience? It's like a person who is having heat rashes may prefer to buy vegetables at the mall than the public market even if it's more expensive. 

Then again what do you expect from people who miss the point? I guess they don't even know things. Just think about the old proverb that empty containers make the most noise. I simply must laugh at what could be ignorance. If they just did a supply chain analysis or look at events carefully--they'd been complaining and not looking at the problem. If they're also against importation in the name of nationalism--they can be part of the problem. Importation can be helpful in times of scarcity. If they're against the importation (for now) of agricultural goods then why even bother posting it on American-made social media like Twitter and Facebook? The irony is there with how these people talk and talk. Arguing with them might be point useless but their arguments still need to be refuted, righyt? 


Labels:

Popular posts from this blog

Has Passing Down Hatred for Singapore (Because of Flor Contemplacion) Economically Helped the Philippines?

PEH.ph It was on March 17, 1995, when Flor Contemplacion was executed in Singapore. I've noticed that I've been addressing her as the late many times, even if the late is a statement that may be ony appropriate if the person has been recently deceased within 10 years. It's about to become 30 years since Flor was hanged in Singapore. However, generational hatred would've been passed down from 1995 up to 2025. Some people are still tagging #JusticeFor Flor. These traits may be passed down from the Batang 1990s to their children in this generation. It may also be passed down from parent to child, even if the child was born in the 2000s to 2010s. Somebody born in 2000s and beyond might even say, "Papa and mama told me about Flor Contemplacion! That's why I hate Singapore!" Talk about a child born in 2004 who's probably angry with Singapore, because his parents kept telling him about how Flor was supposedly "unjustly treated" over there.  Some tim...
Read more

It's A Myth: First World Countries Self-Industrialized and Only Opened to FDI, After They Succeeded

The Straits Times As the battle for economic charter change goes on, another lie often spread: "First world countries, first industrialized by themselves, before they opened their economy to FDI." I'm seeing it ironically on Facebook. I tell them, "If you hate foreigners so much, why don't you get out of the Internet?" Some of them give replies like, "We're not hypocrites for badmouthing FDI on Facebook. We're simply forced to use imported equipment because foreigners unfairly own the means of production (read rebuttal here )." When I ask for their sources, they give sources like people from Bayan Muna (Nation First), the League of Filipino Students, the IBON Foundation, Kabataan Partylist (Youth Partylist), the Alliance of Concerned Teachers (ACT), and maybe even the Catholic Bishops' Conference of the Philippines (CBCP). Most of these sources (not all) are the favorite sources of those going against badly needed economic cha-cha.  I...
Read more

Why FDIs are Choosing COMMUNIST Vietnam Over DEMOCRATIC Philippines

China Daily HK Tomorrow is Ho Chi Minh's birthday. I would like to raise another FDI issue between democratic Philippines and Communist Vietnam. I remember with a certain woman I'll call Miss Clueless, to respect her privacy. Miss Clueless probably never saw a map, called FDI as Favored Duterte-China Investments, and I told her the bigger problem with the constitutional restrictions. Miss Clueless kept talking about that the late Benigno Simeon "Noynoy" C. Aquino III made us a tiger economy, regardless. However, I wrote that relying too much on Noynoy's economic legacy, is pretty much landing into the same fatal mistake that Nokia did . Relying on past successes is a surefire recipe for failure. As Miss Clueless blamed former president Rodrigo R. Duterte, the person still believes that people must change first before systems. I asked her, "Why are people choosing Communist Vietnam over the Philippines." The reason I heard from Miss Clueless was something...
Read more

Is Jollibee "Invading" South Korea Now as It's About to Acquire 70% of Shabu All Day?

I must confess that I find this new rather hilarious . It's because the word shabu is often associated with drugs. All the while, shabu shabu is a Korean delicacy! Well, I'm going to say that Jollibee Foods Corporation has now become a multinational buyer . Jollibee acquired 70% of Compost Coffee back in 2024 . This year, Jollibee as a multinational corporation is now acquiring Shabu All Day for PHP 5.1 billion pesos. Is Jollibee checkmating South Korea or is the Philippines conquering South Korea not just by OFWs but als through Jollibee? The answer is still no. From GMA News , we can read this article by Jon Viktor D. Cabuenas: Under the deal, Shabu All Day will be consolidated into Jollibee Foods Corp.’s (JFC) financial statements immediately upon completion of the acquisition for a total consideration equivalent to KRW127 billion. Completion of the transaction is subject to closing and financing conditions. The acquisition is expected to lead to a 2% jump in revenues, incre...
Read more

Helping Others is Good But Not to One's Own Expense

I advocate for helping others. I believe in helping others but there were times I overdid it. One time, I gave up so much that I had to be stopped. I was told, "If you gave everything now, how can you help others later?" I would donate some sums here and there, without thinking much. I'm not going to write them all. Some of them left me good while others left a bad taste (and a bad record) for me to endure. Sure, I want to help people but I tend to overlook the consequences. Some of the bad habits I had in the name of helping others are like: Being too generous with buying with credit. Eventually, I lost a lot of money which was never recovered . Some seasoned entrepreneurs may admit their own falls including the credit trap pitfall. Being too willing to give a discount without thinking about how it'd affect profits. Sure, a cheap price can draw people near. However, there are times when the prices of goods and services need to be raised to keep a business running. I ...
Read more