CG Prices

wapiticountry wrote:
And this is why businesses should never give raises to employees. The day after the raise they will be doing exactly the same work they were doing before. Giving a raise does nothing but put money in the employees bank accounts and the employer gets nothing but higher payroll costs. Increasing income should be outlawed for both businesses and employees because it is just another term for greed.

I assume you were being sarcastic but....

The market will sort things out.
- In the very short term... If you give them a raise, true, they are doing the same week last friday as this monday but making more money.
- But in the long term, if you are underpaying, the quality employees will be offered higher paying jobs and leave. You will be left with the lower quality employees and unable to hire new ones.

Likewise, if owners are pricing campsites too high, the market will punish them because no one will use their services.
- This doesn't mean the park needs to run at 100% occupancy. A price that keeps the park at 70% occupancy may be more profitable (and nothing wrong with that).
- Right now, there is a spike in demand. When that subsides, prices may settle back down (or more typically, they will hold steady for a long period while the rest of the market catches up).
- Another possibility if prices are too high, is it will drive others to build RV parks. It's tough to buy and develop beachfront land into an RV park at $20/n rates. But if the local parks are charging $200/n, you might be able to build a new park at $100/n rates undercutting the competition.

I always shake my head after hurricanes when politicians go on about gouging but taking bottled water as an example:
- If prices are not allowed to rise, the first people into the store buy more than they need (it's cheap and doesn't go bad). Then those that arrive later have no water to buy. There is no incentive for the store to pay a premium to ship more water in.
- If they are allowed to charge $20/case, the first people in buy only what they need because it's expensive. Now the existing supply, is available to more people. In addition, at $20/case, it may be worth sending one of the stock boys north out of the affected area to buy a couple pallets of water for $3/case, so you can resell them at $20/case, so even more water is available to those who need it. Very quickly, the supply catches up with demand and prices subside.