Wednesday, September 12, 2012
Supply and demand
Whether it's produce, trucking or widgets, the law of supply and demand is primary. The supply of celery in Quebec seems rather light at this time and we are selling out too quickly, so it is time to raise the price. Trucks are also in somewhat short supply and truckers are starting to try to raise the price also. Sometimes, sellers ovedshoot the demand curve and wind up with nothing. Raise the price of celery too high and it sits in your cooler. Demand too much for your truck and grass will grow around the wheels before it moves. The moral is to find the delicate balance where produce and trucks move at fair prices for all involved. It sounds easy, but I've been doing this for almost 30 years and I'm still learning.
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