Wednesday, May 28, 2008
Yokayo Has a Supply and Demand Problem! #
by Fueled for Thought via Fueled for Thought
We simply don't have enough fuel for everyone who wants it. There are four ways I can think of to address this:
Can you think of any others? If so, please write a comment.
Assuming that these 4 options are what I have to work with, here are my thoughts on each:
Bottom line: we are focusing on doing each of these things to a degree, with weight of emphasis shifting between the options as necessary.
1. raise prices until we reach equilibrium
2. find more biodiesel to purchase and sell
3. find more oil, construct more capacity
4. restrict who can buy our fuel
Can you think of any others? If so, please write a comment.
Assuming that these 4 options are what I have to work with, here are my thoughts on each:
1. pros: makes good business sense, and is easy to do.
cons: makes people angry.
2. pros: doesn't make people angry.
cons: eats into margins, plus it is very hard to find fuel that meets all our criteria.
3. pros: the only solution, longterm.
cons: is impossible to implement short term, and is actually quite complicated
4. pros: it forces demand down to a functional level
cons: makes people angry, doesn't address root causes, and isn't easy to do
Bottom line: we are focusing on doing each of these things to a degree, with weight of emphasis shifting between the options as necessary.
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