So it's the annual GSS. Once again, given the 20% discount for all English books, I am washed with joy as I made my way to PageOne at Vivocity in the hope of getting the books that I have always wanted. As I went in for a kill, to my great disappointment, I could not seem to find the books that I had aimed for so long. Determined to get it, I approached the counter staff and consulted them about it.
Me: "Excuse me, I am looking for this book called XXX. Can you possibly help me check whether the shop has any stock?"
Staff: "Please wait for a moment while I check for you sir." [typing away at the computer while I waited earnestly for it]
Staff: "I am sorry sir but the book that you are requesting is out of stock at the current moment."
Me: "Oh [disappointed]...So what about the book YYY?"
Staff: [without checking]"Oh I am afraid that this book is out of stock too."
Me: "WHAT!? So are you guys stocking in the 2 books mentioned?"
Staff: "Yes sir, I believe that we are making orders for it. But it may take a few weeks to come. Maybe you would want to leave your particulars so that we may contact you when the stocks arrived?"
Me: "Haiz, ok"
and then I left the store a dejected person, wondering how could the staff possibly know there isn't any stock left for book YYY without even checking. There are only 2 possibilities. Either the demand is so great that hundreds of people rush to buy and hundreds more like me who asked the staff so many times that she has to know, OR there's a conspiracy going on with the staff hiding all the popular books during promotional period. After all, when people gives discounts, it's to encourage buyers to spend more on their product. But if you have some products with a very inelastic demand curve, giving discounts on it does not make any business sense as you know that people may still buy even when it is at it's original price level.
This scenario is just so common. Whenever there are any discounts given, suddenly the supply curve would turn to the left 1000 miles while the demand curve turns to the right another 1000 miles. Because price is rigid, the quantity reverts into zero (since common sense will tell you a negative figure is not possible). Take Borders for example. One fine day (or any other fine days without promotion), I see stacks and stacks of book YYY. The next day, when I got some vouchers on 20-35% discount, those stacks of book YYY suddenly magically disappeared and I was told again that there is no stock. Upon consulting the staff, I will be told that orders had been made for the books and it will come in a few weeks time--conveniently after the promotion period.
For those in the know, book YYY is written by Benjamin Graham, a very classic book. I didn't know that there is such a huge fan base for Benjamin Graham here in Singapore. And no, I am not telling those who are not in the know what is book YYY, in case you are going to contribute to a rightward shift in my demand curve.
Me: "Excuse me, I am looking for this book called XXX. Can you possibly help me check whether the shop has any stock?"
Staff: "Please wait for a moment while I check for you sir." [typing away at the computer while I waited earnestly for it]
Staff: "I am sorry sir but the book that you are requesting is out of stock at the current moment."
Me: "Oh [disappointed]...So what about the book YYY?"
Staff: [without checking]"Oh I am afraid that this book is out of stock too."
Me: "WHAT!? So are you guys stocking in the 2 books mentioned?"
Staff: "Yes sir, I believe that we are making orders for it. But it may take a few weeks to come. Maybe you would want to leave your particulars so that we may contact you when the stocks arrived?"
Me: "Haiz, ok"
and then I left the store a dejected person, wondering how could the staff possibly know there isn't any stock left for book YYY without even checking. There are only 2 possibilities. Either the demand is so great that hundreds of people rush to buy and hundreds more like me who asked the staff so many times that she has to know, OR there's a conspiracy going on with the staff hiding all the popular books during promotional period. After all, when people gives discounts, it's to encourage buyers to spend more on their product. But if you have some products with a very inelastic demand curve, giving discounts on it does not make any business sense as you know that people may still buy even when it is at it's original price level.
This scenario is just so common. Whenever there are any discounts given, suddenly the supply curve would turn to the left 1000 miles while the demand curve turns to the right another 1000 miles. Because price is rigid, the quantity reverts into zero (since common sense will tell you a negative figure is not possible). Take Borders for example. One fine day (or any other fine days without promotion), I see stacks and stacks of book YYY. The next day, when I got some vouchers on 20-35% discount, those stacks of book YYY suddenly magically disappeared and I was told again that there is no stock. Upon consulting the staff, I will be told that orders had been made for the books and it will come in a few weeks time--conveniently after the promotion period.
For those in the know, book YYY is written by Benjamin Graham, a very classic book. I didn't know that there is such a huge fan base for Benjamin Graham here in Singapore. And no, I am not telling those who are not in the know what is book YYY, in case you are going to contribute to a rightward shift in my demand curve.
1 comment:
If you are talking about "The Intelligent Investor", I don't see why they would hide it ... Of course it is a perennial favourite, but it can't actually be bestselling ... It has already been selling for so long.
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