The economy sucks for one reason: Over supply.
OK, the economy sucks for more than one reason. But this one rules.
We have no reason to buy anything except groceries, gas and other essentials (Third World countries don't even buy toilet paper-can you imagine?).
We love to have a reason to buy! Here is what Obama and the politicians need to think about: Prodding companies to develop products that people must have.
Remember Cabbage Patch dolls? Furbies? Beanie Babies? And even Wii? The company creates the demand and then purposely undersupply it. It drives us nuts on one hand but on the other hand, it makes our creative juices flow on how we can secure the item. We will actually stand in line for hours upon hours if we know we can get the item we want. How crazy is that?
Here is another example. The radio and newspaper talks about the newest phone that takes photos, does email and the sort (before the Blackberry). Everyone rushes to the phone stores to buy the phone. You walk into the store hoping they have it in stock. The salesperson comes up to you and asks if you need help. You frantically scream out I got to have this blah-blah phone and I have to have it now.
The salesperson calmly says the last customer came in and put a deposit on our last one. You reply back that you must have one more somewhere. The salesperson states that I can check my warehouse or another store. You beg him to. So he goes into the backroom and you are watching for him like a tiger pouncing on its prey and hoping against all odds he is carrying a box with him when he comes out. When he does, you are the happiest and when the salesperson asks cash or charge, you don't even care how much the damn phone costs. In fact, you would pay a premium for it.
I recall when OPI first did its seasonal collections. They would make so many, alert everyone of the first sale date and once they were gone, they were gone. We sold out in days. People begged for more. There were no more. Hence, people bought multiple units so they would not run out. It was mayhem and we loved every minute of it.
Today, you can buy as many South Beach collections as you want pretty much anytime you want to buy them. There is no shortage of them and consequently, there aren't people frantically looking to buy them.
It's time to take oversupply out of the economy. People love to pay a premium for something that is hard to get (how about sporting and concert tickets?).
Today's choices are too many. Let's limit the choices, limit the supply and drive the economy forward.
Now, who has Jimmy Buffett tickets at DTE for sale?
Happy Friday!
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