Price Freeze

gracer

New member
Here in my country, we are experiencing price freeze on all basic commodities due to the ongoing state of emergency that has been proclaimed by our government. The business sector however, is requesting for some sort of leeway on prices of goods because the real reason for the state of emergency is terrorist threats and not of a calamity where production is affected.

Businesses that deal with perishable goods and the grocery sector have been claiming that it would be hard for them to adjust to the price freeze because they cannot control the prices of the products from the manufacturers and suppliers. So of course they also have to adjust their prices basing on the prices of their supplies.

I can understand the sentiments of retail businesses on this matter because a price freeze can be very detrimental their business especially if they cannot control the prices of the supplies they get.

Have you ever encountered problems related to price freeze or with regards to the regulation of prices of goods?
 

Corzhens

Member
Re: Price Freeze

It was a long time ago when Martial Law was declared in our country. There was a freeze in prices of basic commodities particularly food products that resulted in a shortage. I remember my brothers lining up in the rice store because rice was being rationed. And it wouldn't have a shortage if the prices were not on freeze since businessmen have to recoup their investments. And I can say that a price freeze can result in unfair business competition that some businessmen would resort to hoarding their stocks.
 

djchain

New member
Re: Price Freeze

Well, sorry to hear about the state of emergency. And my condolences for the mind numbing acts of terrorism that has marred our world at this time. Anyways, in terms of price freeze, its a political and not a business decision. And I have personally never seen as state of emergency being imposed on prices. However, the governments have their reasons to do so. During a time of emergency, or when there is a prolonged curfew in a region, some businesses get greedy. Even department stores charge higher prices for goods. So, they've probably placed a price freeze to avoid that sort of a situation.
 

David_TR

New member
Re: Price Freeze

I also express my condolences, it's a shame that things have come to this lately. I find it strange that items whose price is not largely affected by the events going on, but to be honest I don't really know if the supermarket is right to freeze prices given the circumstances. It also raises the question, why aren't the manufacturers affected by the price freeze? If it was really being that strongly enforced you'd think it would come into play a little more. I don't understand how things work over there, admittedly, but the idea that supermarkets can get around the price freeze seems to kind of defeat the purpose of a price freeze to me.
 

djchain

New member
Re: Price Freeze

Like I said, maybe its to make sure that stores don't charge unfair prices in order to take advantage of a lockdown. This does tend to happen sometimes in such situations. Not everyone is sympathetic to the plight of people facing a calamity or a threat.
 

Vampa

New member
Re: Price Freeze

I think governments at times are forced to impose a price freeze to protect consumers from rapacious retailers. Should terrorism or some civil unrest disrupt supply chain networks then retailers could sell goods at ridiculously high prices.
 

pwarbi

New member
Re: Price Freeze

I can see this from both sides of the fence and while a price freeze isn't obviously going to be good for the businesses that are making and selling some products, for the general public I do think that freezing the prices of some things is the only way to stop them being over-charged as these companies try and cash in on whatever is going on in that particular country.

I'm sure that we are all well aware of supply and demand, and when there is a crisis then shops especially do tend to inflate the prices. When it comes to a state of emergency though, and people needing basic supplies just to get by, it's wrong for shop owners to try and take advantage of that sort of situation but the only way to stop them is by the government stepping in and taking control.
 

explorerx7

New member
Re: Price Freeze

I could side with the government in this instance. Because of this unfortunate insurgency situation, some merchants may seize the opportunity to carry out price gouging activities, The well-meaning merchants the price freeze is a big slap-in-the-face. But I guess that the government has probably been down the road where merchants have exploited situations like this before, therefore the government may not be willing to leave anything to chance so the good may have to suffer for the bad.
 

Norm

New member
Re: Price Freeze

I think it's fair as long as it's temporary and the plans are transparent for the retailers. Sometimes tough decisions like this have to be made to keep things balanced and to keep the people protected. I would only be wary if I feel that there is some politics behind the decision but if I feel it is an absolute necessity then I would understand.
 

Corzhens

Member
Re: Price Freeze

When there is an emergency situation in the country, the reaction of the retailers is to hide their stocks particularly the food items. It's not really to deprive the people of food but to keep safe because the public tends to loot stores when they go hungry. It has been experienced many times so retailers would hastily close shop and even guard their store with a gun. That happened in 2013 during a strong typhoon that rendered the province of Leyte in a calamity state where people have nothing to eat and stores were shut.
 
Thread starter Similar threads Forum Replies Date
Corzhens Supply Chain Strategy 1
G Supply Chain Strategy 10
Top