General Question

CuriousLoner's avatar

What does it mean when the dealer of something does not want prohibition of said thing to end?

Asked by CuriousLoner (1808 points ) October 27th, 2012

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11 Answers

Unbroken's avatar

They wouldn’t have a business if it went legit. Their cut of profit margin might be smaller, they would have to quality control and compete.
Unless you are talking about Cali marijuana farmers. In which case they worked out a pretty cushy deal for themselves. Which imo is because it’s pseudo legal and still has risk.

ragingloli's avatar

Once prohibition of something ends, its rarity will inevitably end. Supply goes up, prices go down, further decreased by pressure from competition, cutting into the dealer’s profits.
Plus taxes.

wundayatta's avatar

Are we talking about 20 oz sodas in NYC?

CuriousLoner's avatar

@wundayatta I was being kind of open ended on the question. Wanted to see where it would go,but still on topic to a degree. I have no idea about soda in NYC, is that serious or a joke?

wundayatta's avatar

They are outlawing large soda sales in NYC. I’m wondering if the same principle will prevail. That people will sell black market large sodas for twice the price, or something like that.

ragingloli's avatar

@wundayatta
Why would that happen, given that the simplest way around it is to buy 2 smaller ones.
All this law does is make you consciously choose to pump yourself full of sugar water.

Unbroken's avatar

Buying a 20 oz soda makes you conciously aware of what you are consuming.

What an awful law.

wundayatta's avatar

@ragingloli Well, I played that through in my head. There are a lot of ways to make it go. You could refuse to sell more than one drink per person unless they paid a premium, or gave you a kick back. Or you could have a back room where they could buy as much soda as they wanted. I don’t know. I’m not a seller. But I bet they could figure it out.

Don’t you just love it, though? A black market in large size sodas? The Big Gulp back room?

JLeslie's avatar

@wundayatta Too funny. Big Gulp back room. Hahahaha! I think what will happen is people will drink less soda, or get less ice in their soda. Where they can refill themselves they will just make one more trip. Although, NYC does not have a lot of self refill like other places.

CuriousLoner's avatar

Wouldn’t the the soda company make more money if they went that route? Usually, or my basic understanding is, if I buy a larger quantity of something at once it is cheaper versus buying that same thing in smaller quantities over and over again to achieve same amount.

Also if the ban is only on 20 oz sodas then that means I can go buy something of larger amount?

Then that means I’m left with the first option of buying smaller amounts or buying one larger amount.

On top of that, how it would affect business? My thinking for example if now my 16 oz or lower products are in higher demand because of the 20 oz ban that means I have to stop making the 20 oz and increase output in the others. I need to offset the costs of this new trend. Would this cause the price to go up or down?

Assuming demand would go up for lower or higher ozs. If that’s the case then I can increase price If I needed to regardless since I know people have less options.

I figure for every 4 16oz sodas sold versus 4 20oz soda sold I gave my company a free 16oz one if I can offset the costs, and then sell it. Maybe even profit? I don’t know really know much about economics or business.

In the end the only ones I see coming out on top are the people enforcing the ban and companies who sell soda. Because really, if you are going to drink a lot soda, you probably still will even with this ban in place. What do you think?

wundayatta's avatar

I’m not sure where the ban starts—20 oz or 32 oz. But wherever it starts, it includes larger amounts in the ban, as well.

I think that stores will make more selling lots of 16oz drinks since they can no longer sell the bigger drinks. I think the soda industry is secretly behind Mayor Bloomberg’s initiative. I bet he holds a lot of Pepsi stock, too.

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