Business man with Consumers

    Recently petrol price had increased and it affect cost of goods. There are some business decide to increase their selling price to maintain their profits. But there are some of the business man refused to increase their products price. They decided to maintain the price or even decided to decrease price also. So the problem is to increase products price because of the petrol price that had increased is it ethical or unethical? How much or what are the range should product price have been increased if it is ethical?

    In my point of view, I think that to increase or not to increase price when the petrol price had increase is actually just to influence and affect a business’ profits. Business man will mark up their products price certain percentages to earn profits.

    It is actually a cycle. When the cost increase, it means that business man have to spend more to buy their stocks. If business man decide to increase the selling price, consumers have to spend more money to purchase. Because of consumers have to spend more money to purchase especially for daily usage products, it will increase their cost of living. But if the business man decide to maintain the selling price or even decrease the price, it will help consumers to overcome and to decrease their cost of living.

    Business man decide to increase price of products because of the petrol price had increased. They want to maintain their profits so they transfer the costs to the consumers but for those consumer that have no other ways to purchase or no solution, they will have to pay higher price to get the products. Those who are low income group of people or those people that received fixed salary decide to continue purchase those products that had increase price might not able to afford the expenses. If they cannot looks for extra income, they have to control their expenses.

    Even the petrol price had increased, it might increase a little bit of the transportation costs but when the business man decided to increase selling price, they will earn a lots from there while cover the costs. For example, it is usual to happen on foods. Price of vegetables that sells in market had increase at least 50 cents per kilogram and just because of the petrol had increase 20 cents per liter.  How much the transportation costs had increase from there? Lets say it transfer from a farm that 10 kilometers away from the markets. Petrol price increase 20 cents x 10 kilometers = RM 2. It is just increase of RM 2 for the transportation. But the seller had earn 50 cents x 10 kilograms RM 5. The seller had increase another RM 3 for profits. Maybe not every seller do so but there are some seller purposely do so.

    Actually it can be understood by the consumer that business man benefits had to be taken care but in a ways where at the same time consumers also can afford. Because of petrol price had increase, products selling price also increase but consumers’ income did not increase. Why? Business and company owners’ benefits had to be taken care but those consumer that only received salary where they still have to afford different expenses such as taxes, rental, petrol, insurances, food and beverages.

    Nowadays, a lunch in Kuala Lumpur will easily cost at least RM 10 per set (included rice/noodles with a drinks). My friend also tried a mixed rice that cost RM 10 without beverages. Let’s calculate, if one meals costs at least RM 10 per set, consumer that work 5 days per week and in a month with 4 weeks, it will cost RM 10 X 5 DAYS X 4 WEEKS = RM 200 just for lunch. After added different expenses, for a consumer that get RM 2,500 as salary per month can still survive?

Income	RM2,500
-         Less: Expenses
Breakfast (RM5X5daysX4weeks)	RM100
Lunch (RM10X5daysX4weeks)	RM200
Dinner (RM15X5daysX4weeks)	RM300
Vehicle hire purchase	RM300
Petrol (RM50X4weeks)	RM200
Rental	RM500
Insurance	RM200
Telecommunication	RM300
Medical	RM100
Electricity & Water	Rm250
Balance	RM50

    What a consumer can do with the balance of RM50? The statement above is just some part of their expenses. So do consumers need to have some saving for future? But how they can save when they don’t have balance from their salary?

    Maybe become an employee nowadays, we as consumer cannot survive easily. That’s why people nowadays will rather start their own business. Although to start a business is not easy but the money can earn from a business will more than their salary then only they can survive in the society. Why? This is because they can mark up their price.

    So how should a seller react on their products selling price after the petrol price had increase? As mentioned in above it is reasonable for seller to increase price but the price had to be affordable by the consumers. If the seller just consider about their profits they might been boycott by the consumer. If the costs had been increase to a level where seller cannot afford, the seller can transfer some costs to the consumer. But not every time when there are different price had increase. Some times government had give some subsidies to the seller also.

    I think it should be fair to the people to respect each other’s but not to gain each other’s benefits. So when the petrol price increase in a range where it can be afforded by the business man it should not all transfer to consumer that survive hardly in the society.