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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? 


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