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I'm B(oil)ing Mad!!
I'm the first to admit that I am no economist, but I do know a thing or two about business, and I would like to submit to the genius who made this statement that if he thinks consumer demand will not be the deciding factor in determining the price then I would like to invite him to a little class I like to call "Matt's Business 101 For Dummies". Here's how it works: First, we recap the basics; I like to call this "Supply and Demand" and it's really simple, at least in principle. Consumers all over the industrialized world rely on oil for everything from fueling their vehicles to heating their homes. We use lots of it. In fact, coincidentally enough, the demand for oil has increased dramatically right along with the population of the earth (at least in those aforementioned industrialized areas). However, the major oil-producing countries have chosen not to increase production of the precious liquid in proportion to the growing need. One can only speculate as to why this is so. Perhaps, and remember, I'm no economist, they realize that if they don't produce enough oil to meet the demand the price will rise dramatically. Just a wild guess. Next we'll tackle the concept of "Updating Your Business To Keep Up With The Times". This ingenious concept goes by the premise that if you want your business to remain successful you must adapt it to the changing demands of your customers. For example, if your customer base grows and the demand for your product grows along with it, you should probably grow your business to keep up with the growing demand. Of course, there is apparently another school of thought on this subject: if you get all the other companies that make the same product that you make to join together and keep production levels where they are then you don't have to spend money growing your business, and you can just keep raising the price of your product because your customers can't get it anywhere else. This is a much less popular business plan to your customers, but who cares, you have them right where you want them. I should mention at this point that there is an inherent flaw in the previously mentioned unpopular business plan: If you push your customers too far there can be a devastating consequence. You see, most customers are a fairly loyal bunch who will take a certain amount of bullying with no more than an occasional complaint, until you finally force their hand. And when angry customers band together they will always find another solution to their common problem. In this case, I submit that the customers will finally embrace the concept of mass transit and ride-sharing. I believe they will, after having been pushed to the limit, find alternative methods of transportation when available, share driving duties with family and co-workers, and severely cut back all non-essential driving, including vacation driving destinations. Furthermore, I believe the demand for hybrid vehicles will soar and bicycles will become almost as common on city streets as automobiles. I believe the disgruntled customers will flock to trains, trams and subways, and bus pass sales will skyrocket. Few things compare to the love we have of our vehicles, especially here in the U.S., but every relationship has a breaking point, and I think nine or ten dollars per gallon of gas might just be the catalyst to cause the break-up. The last lesson in "Matt's Business 101 For Dummies" is titled "How To Win Back The Customers You Lost To Greed". Just imagine if you will for a moment what would happen if enough people actually did join together to cut oil consumption, even by ten or fifteen percent. The oil producing nations would be in such a panic because of the tremendous backlog of oil that they would be forced to actually cut back production and lower prices drastically, the likes of which haven't been seen by "Big Oil" since the 1980's. And if the trend would then catch on and become the norm, imagine what a profound effect it would have on our environment, with billions fewer tons of emissions being spewed into the atmosphere. Those of us with allergies might actually be able to breathe a little easier. Think I'm living in a dreamland? I'm willing to back up my words with actions. I've been thinking about purchasing a new bicycle anyway; I could use the exercise. What are you willing to do? Article Directory: http://www.articledashboard.com |
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