Wednesday, December 14, 2005

A power company in Connecticut is stretching the definition of supply and demand economics. When gas was in short supply, prices went up. Now, after counselling their customers on how to conserve, they just petitioned for a rate increase, based in part on reduced demand.

Sounds like they have discovered the printer industry's business model.

In a related note, I had to purchase an inkjet cartridge for the boss' printer. The three color cartridges held 28 ml of ink. The black cartridge held about 40 ml. Each cartridge was $30. Hewlett-Packard color ink costs $1/ml, and black costs $.50/ml at Quill. If 1 gallon contains 3,785.41 milliliters, according to Science Made Simple, that means printer ink costs $3785.41 per gallon! Yikes!


Blogger Dus10 D said...

It is certainly crazy. However, the way it all fluxes, I can see their point. They have their business set up with certain fixed expenses. When demand drops, those expenses stay the same. Therefore, the price must go up if they are to pay their bills. But, I think that is their own fault. They need to start operating like a real business and be more agile. Of course, they picked the wrong industry/cabal to be involved when it comes to matters of flexibility.

9:49 PM  

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