n Andrew Fischer
Hoarders vs. Gougers Toilet paper hoarding’s driving the world crazy. So, what’s the best way of combatting it. Our writer comes up with an answer that won’t satisfy everyone
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ne consequence (there will be others) of the current coronavirus craziness is that petrified consumers are hoarding everything from frozen vegetables to oatmeal to toilet paper. I find it a curious reaction that defies logical explanation, but some are trying: Stores usually stock two or three days worth of inventory. Customers usually shop for toilet paper every two weeks or so, buying enough to keep them supplied until their next run to the big box store. But the COVID-19 outbreak and the calls for social distancing that followed upended that steady flow of buying and restocking. People started buying more toilet paper, a “buffer stock”… after they were told to prepare for more time at home….”. [1] Psychologists suggest that stockpiling gives people a sense of control when they otherwise feel powerless. We would add that a lack of public leadership at the highest levels only feeds public panic. When it looks like those in charge don’t have a handle on the problem, more than a few people will do the only thing within their
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power – stockpile for the uncertain times ahead.[2] [A] perceived scarcity of Charmin is not proof of a global health crisis. It’s only proof that some people are taking an abundance of caution. If someone fears not being able to buy toilet paper, that apprehension can be remedied by buying a lot of it. It’s one of the few things about the current health climate that consumers can control.[3]
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n the other side of the coin is the self-righteous MSM braying over alleged “price gouging” when sellers increase their prices during times of scarcity. Somewhere between the two extremes lies a reality that needs to be explored. Let’s take a look … I see three possibilities for a seller during a crisis-induced purchasing panic: Do nothing, ration inventory or raise prices. Let’s see what happens in each case. A seller will soon notice that his/her (“his” from now on – I’m pulling a Jordan Peterson and refuse to use grammatically incorrect “their” and “they” forms)
inventory is turbo-jetting off his shelves. He may quickly restock from inventory, but after another wave of super-quick sales he will have to make a choice – reorder now or later. It’s likely that he’ll immediately call his supplier and order more. Let’s stick with toilet paper (if you’ll pardon the mental image), so I can abbreviate it as “TP”. If he’s smart and lucky, our seller will increase his normal order by some multiple and they’ll soon be delivered. His TP supply restored, our hypothetical entrepreneur goes about his daily business, probably noticing very brisk sales of other items. Soon he notices that his TP inventory again needs to be reordered. This time, however, his supplier informs him that other retailers have been ordering increased quantities of TP and to keep them happy he can only give him half a case. A light bulb pops up over our seller’s head. He realises he will soon be out of TP. Knowing that he has to keep his customers happy, our seller considers the three possibilities noted above: 1. He can do nothing, let his stock run out and put up a sign
