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While hoarding and price gouging hand sanitizer gives credibility to the worst in humanity, distilleries are stepping in to highlight the best. Converting their waste alcohol into high grade sanitizer, and then sharing it at no charge. Innovative capitalism at its best is an excellent pivot from the profiteers.
~Matt Groening, via Homer Simpson
VG is a serious blog. Why then, did I preface my post with a quote from Homer Simpson?!
Because his character reflects absurdity combined with snippets of brilliance that we are presently seeing. Especially with alcohol. Hand sanitizer that is. Translucent Gold. Slayer of all things Corona (there’s some irony to this statement).
On the one hand, we have profiteers (beneficiaries of hyper-reporting media) creating a mass shortage of hand sanitizer. Organized buying sprees with the sole purpose of hoarding for profit.
On the other hand, we have small distilleries with excess quantities of high proof alcohol as a by-product of their manufacturing process. These true capitalists recognize a market shortage and innovate to meet it. Their communities and businesses are beneficiaries of innovative thinking.
Seeing a potential demand and seizing upon it is a savvy business move. Seeing a potential demand and then intentionally creating a shortage of goods so you can price gouge is an asshole move.
Unfortunately, the Coronavirus is bringing out the A-Holes. En Mass. Profiteers are creating false shortages by buying all the regional supply of hand sanitizer. One recently profiled in the New York Times said,
“There’s a crushing overwhelming demand in certain cities right now,” he said. “The Dollar General in the middle of nowhere outside of Lexington, Ky., doesn’t have that.”
He thought about it more. “I honestly feel like it’s a public service,” he added. “I’m being paid for my public service.”
Oh, Mr. Profiteer Pirate, what does Dollar General have…? A supply chain system. One that allows them to transfer goods from “… the middle of nowhere …” to the places with a “… crushing overwhelming demand …”
Their supply chain won’t incur an exorbitant markup for “public service.” It’s just part of doing business. No amount of self-delusion will change the fact that you are hoping to score a huge profit on a demand you helped create. I hope that you lose your shirt on the over 17,000 bottles you have, and your brethren rethink your “business model.”
I should offer to pray that you see the failings of your ways. But since my church is abiding by “social distancing” we are on hiatus. Send them a case of Purell, and I can add you to my prayer list. Until then, I’ll thank the throngs of people who are reporting your gouging ways to internet resale sites. Not all hero’s wear capes!
Tennessee man has 17,700 bottles of hand sanitizer and sanitizing wipes, and nowhere to sell them. He stocked up weeks ago, and was reselling on Amazon at exorbitant prices. Amazon stopped coronavirus price gouging and shut him down. pic.twitter.com/6lfd3lJMXD
— Mike Sington (@MikeSington) March 14, 2020
One of the hallmarks of Capitalism is the recognition of a need, and meeting it. Often resulting in profits for the innovator. Our system defines “profits” as money. Under the mud thrown by anti-capitalists, the heart of the system is one that sees a need, and aims to fill it. The only way to see a need, is to see people. The foundation of every successful capitalist business is built upon providing a good or service to the individual. Capitalism benefits society, because it benefits people. In this mindset, we find compassionate capitalists; people who view a profit as something different than money.
Small businesses are nimble, a necessary skill to their survival. This trait is especially true of small distilleries. Not only is their product legally restricted to a specific market (legal drinking age), they are a David to the conglomerate Goliath’s of industrial distilleries. Regional distilleries know their community, and other small local businesses. Success is built on forging relationships. Subsequently, they thrive together.
It’s here where we find operators across the country meeting demand for sanitizer. For no charge. Tell me again how, “capitalists are EVIL!!!”.
Shine Distillery owner, Jon Poteet said in The New York Post ,
“Ultimately, I’m part of the community, I want my friends and neighbors to be happy and healthy,” he said. “All my neighbors getting sick and going down doesn’t do me any good. I want to be in a healthy community, and it feels good to be able to give back.”
Let’s see what they’re saying across the country.
Over in North Carolina the Durham Distillery is owned and operated by husband-wife team, Lee and Melissa Katrincic. They tell ABC 11,
“For us, any type of cost is — we don’t really care,” Lee. “We want to be able to help the community and help these restaurants be able to stay safe.“
Melissa adds,
“We rally together. I think that’s why we want to be integral in helping all of us get through it,” Melissa said. “This is really where you see humanity at its best.“
Capitalists, who innovate to meet a need in their community. Hence, it really is where we see humanity at their best.
If you find yourself local to these distilleries, return the favor and support them. Across the country (and England) these business are helping their communities. Therefore, by default, helping ours as well.
Atlanta, GA: Old Fourth Distillery
Durham, NC: Durham Distillery
Brooklyn, NY: New York Distilling Company
Portland, OR: Shine Distillery
Tacoma (area), WA: Chambers Bay Distillery
Bristol, England: Psychopomo Microdistillery
Featured Image: WikiMedia Commons License: Free Image Cropped: 400×400
Scott says: Well done to all those distilleries, and hopefully that fool spent all his money on hand sanitizer instead of food. I’d love to be there when he has to drink it!
Privateers rank right up there with hackers in my mind. they should both be publicly executed, preferably by wild dogs!
Good for them! Nice to see them stepping up and the privateers should be tarred and feathered!
Charles N. Steele says: Explain the difference between “profiteering” and “earning profit.” Until you can do this, objectively and clearly, I can’t follow.
If prices aren’t allowed to rise when demand increases, prices become meaningless and shortages result. Rising prices incentivize consumers to conserve, to use wisely, to seek substitutes. Rising prices incentivize producers to produce more and to innovate to meet new demand. Stop that process and you create & exacerbate shortages.
Do you want more hand sanitizer? Let prices rise.
GWB says: Your first sentence is the key: the difference between driving the price up and a natural rise in response to demand/supply.
If someone hoards supply in order to artificially produce a shortage, that can fairly be deemed “price gouging” or “profiteering”. It’s the same principle as “monopoly practices.” With some of the same problems in properly dealing with it.
I see. So “artificial” is when someone we don’t approve of buys and sells in such a way as to raise prices. “Natural” is when anyone else does. That’s all you’ve said, and that’s not objective.
“Natural” demand/supply is always the actions of individuals. Labeling changes as “artificial” is simply moralizing; usually rather empty moralizing. I understand, of course, that people hate it that when demand skyrockets in a crisis, prices “naturally” rise. Acting on this emotional reaction is potentially dangerous — it exacerbates shortages, and those can kill. Rising prices incentivize consumers to conserve, to be careful about wasting, to put more effort into finding substitutes. They incentivize sellers to produce more and to innovate to expand supply and substitutes…both are exactly what a rational person would want in a time of crisis.
Stores in my part of the country are stripped, thanks to the foolishness of inflexible prices.
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