Thursday, April 24, 2008

Skyrocketing rice prices has Sam's Club limiting sales -

What are they thinking?

Skyrocketing rice prices has Sam's Club limiting sales -

Retail chain Sam's Club will limit the sale of large quantities of rice amid a dramatic increase in the global price of rice.
The store will limit customers to four 20-lb. bags of jasmine, basmati and long-grain white rice, the company said in a statement. Its restriction mainly will affect businesses that buy rice in bulk, but the company said "a typical Sam's Club Business Member does not buy more than 80 pounds of rice in one visit."

If the price of rice is going up, limiting the supply is only going to further raise the price of rice. Its simple economics!

I'm not sure if this is to be a thinly veiled, "lets save the rice for the other people" or just an effort for Sam's Club (and Costco too) to further profit in a tight economic situation.

I was able to find news articles about this with a quick google search, but I wasn't able to find any press releases from either company. I'm tired, so I didn't look too hard, but it wasn't too hard to figure out that this is ridiculous anyways.

Good night for now. Think of what kind of great thoughts I could come up with if I wasn't holding my eyes open with toothpicks...

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