Tuesday, April 13, 2010

Supply and Demand

Given our Brother friends both have Thai boyfriends, we do tend to take notice of Thai matters. I picked this up from the net, and I have mentioned it often, sometimes in jest and sometimes seriously.

After the Bangkok international airport was shut down a couple of years ago, with our Brother friends trapped in a luxurious hotel in Bangkok, tourism to Thailand fell by a great degree. Every tourist related business realised that they were not making the profits that they were, so in an attempt to improve their profits, they increased their prices, which rather goes against the usual supply and demand rules of if customers are scarce, drop the prices to attract customers and increase business.

It seems our own Australia Post is learning from Thailand. Letter mail has dropped, although from my experience, not from from the ANZ Bank, and so Australia Post wants to increase the cost of sending a letter from 55 cents to 60 cents. In years past there used to be an outcry if the price of stamps went up, but I don't expect there will be this time and I don't expect the number of letters sent will be reduced because of the extra five cents.

This supply and demand and capitalizy thingo only works when there is competition. Increasing the prices in Bangkok did not work and did not attract more tourists. They just went elsewhere. But Australia Post increasing the cost of a stamp by five cents will work because there isn't competition.

But hey, neither you nor I are silly enough to think that Australia Post ever produced their rivers of gold by selling basic letter stamps. I think we are high end users of stamps, averaging perhaps one a week. I doubt most people would be in our league.

10 comments:

  1. heck, i think the last time i posted something was christmas! I rarely post anything & mostly it goes overseas!

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  2. Anonymous1:55 am

    Ditto with Fen. I last posted my Nursing Registration Form into the Nurses Board..that was the last stamp I bought. Otherwise, I send alot of stuff via Aust Post for Ebay.
    Cazzie

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  3. Shit! Is that right - stamps are now 55c. Bugger ... I still have a roll of 50c blighters in the top drawer. Shit and derision ...

    Speaking of shit'n'derision ... your brumby is playing hard ball.

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  4. hah Julie, I always seem to have a packet of stamps that is the wrong price coz I didn't use them up before the price rose!!

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  5. Ours are mostly birthday cards Fen.

    And don't Aus Post just love you and Ebay Cazzie. Rivers of gold.

    Julie, can you use them for christmas cards, which are now 50c. Brumby is firmly negotiating. I expect all states will benefit so it is a bit off for SA Premier to be complaining.

    I did hear Fen, that you can still use them without a top up stamp.

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  6. Damn, I just knew this would happen and me with a book of pale pink roses 55c and matching envelopes. @#$*ers!

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  7. Use them Jahteh. How will the sorting machine know the difference.

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  8. Can still buy 5 cent stamps to make up the diff.
    Pfft, Brumby, to quote Monty Python "I fart in your general direction."

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  9. Jayne, you offend my artistic sensibilities, my pale pink roses next to some 5 cent garishness, never.

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  10. I do Jayne, to use any left over christmas stamps.

    Oh Jahteh, very high and mighty. You choose your own stamps.

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Whenever I wish I was young again, I am sobered by memories of algebra.