{"id":2456,"date":"2007-03-15T14:35:00","date_gmt":"2007-03-15T14:35:00","guid":{"rendered":"https:\/\/test.simple-talk.com\/uncategorized\/its-called-capitalism-and-youre-just-as-guilty\/"},"modified":"2016-07-28T10:49:02","modified_gmt":"2016-07-28T10:49:02","slug":"its-called-capitalism-and-youre-just-as-guilty","status":"publish","type":"post","link":"https:\/\/www.red-gate.com\/simple-talk\/blogs\/its-called-capitalism-and-youre-just-as-guilty\/","title":{"rendered":"It&#8217;s Called Capitalism, and You&#8217;re Just as Guilty!"},"content":{"rendered":"<p>Action 19 News in Ohio was hot on the investigative trail of a Girl Scout cookie scalper today.&#160;&#160;Apparently, the owner of a Valero gas station in Parma Heights, Ohio bought a LOT of Girl Scout cookie boxes and is selling them in his store for $4 dollars.&#160; Girls Scouts, on the other hand, peddle the boxes boxes for $3 dollars door to door.&#160; Kate Donahue of the Girl Scouts of Lake Erie called the Valero owner&#8217;s actions dishonorable and dishonest.&#160; <\/p>\n<p>Dishonorable?&#160; Dishonest?&#160; How so?&#160; <\/p>\n<p>Now, I must concede that I am not in possession of all the facts surrounding the situation because the news clip was about two minutes long and didn&#8217;t go into much detail.&#160; There were only two piece of information that you can really get from it.&#160; First, the owner was buying the boxes for $3 and selling them for $4.&#160; Second, the boxes say that resale of the boxes is unauthorized.&#160; So, I&#8217;m running with those two facts.<\/p>\n<p>From what I understand, the Girl Scouts sell boxes of cookies for $3, and the owner of the store purchased the boxes for $3 dollar a box.&#160; Nobody was complaining about non-payment, so it was obviously not an issue.&#160; The Girl Scouts received all that they desired for the boxes of cookies.&#160; No dishonesty or dishonorable behavior there.<\/p>\n<p>In his store, he sold the cookies for $4.&#160; People paid $4.&#160; People got their cookies.&#160; From what I understand, there was no misleading signage saying anything about giving every single last dollar to the Girl Scouts.&#160; So, no dishonor or dishonesty there.&#160; <\/p>\n<p>But what about making an extra dollar off the box?&#160; Dawn Hendrick, the reporter on the case, brought up a good point when she asked why she had to spend $4 on a box of cookies at the Valero when the Girl Scouts were selling them for $3.&#160;&#160;Here&#8217;s why Dawn: you bought it from a Valero and not from a Girl Scout!<\/p>\n<p>There are only two types of people in a purchasing situation.&#160; The first type of person is the type who does not know the going rate of an item.&#160; This person has to rely on their own perception of value to determine if a price is correct.&#160; If they want cookies, see a box, and determine that the prices is reasonable, then they purchase that box of cookies.&#160; By purchasing the cookies, they are agreeing that the price is reasonable and correct.<\/p>\n<p>The second type of person is the type&#160;who does know the going rate of an item.&#160; If they see a price that is above the going rate, they have a decision to make: is getting the item at the current location worth the additional cost?&#160; If it&#8217;s not, then the buyer can leave.&#160; By purchasing the box, however, the buyer is agreeing that the extra cost is justified due to convenience.&#160; <\/p>\n<p>If you can sell and item for more than you bought it for, then you have brought value to the person buying it.&#160; It may be perceived value, or convenience value, but you have provided value none-the-less.&#160; Pocketing the difference is called profit, and it&#8217;s how the world works.&#160; In fact, I can guarantee you that the Girl Scouts are not spending $3 dollars to MAKE the box of cookies that they are selling for $3.&#160; So their stance against someone selling their cookies at a profit seems a bit irrational.&#160; And considering that their sales force consists of tens of thousands of unpaid child laborers, I would say that they have a pretty good racket going on themselves.<\/p>\n<p>My favorite part of the newscast is when&#160;a Girl Scout says &#8220;We use our money for our troop and other stuff, and he just gets it for himself to spend.&#8221;&#160; It was meant to be a damning condemnation from the mouth of a child, and that&#8217;s how it comes across in the interview. But the reality is that shows the absurdity of the outrage towards the Valero owner.&#160; Basically, the Girl Scouts are out selling cookies because they need money to pay for Scouting related activities.&#160; The Valero owner is selling products at his gas station because he needs money to pay for living related activities.&#160; So why is the Valero owner being accused of perpetuating some great evil upon the world when the Girl Scouts are engaging in the same act?&#160;<\/p>\n<p>Some would then argue that since boxes of Girls Scout Cookies say &#8220;Any Resale or Redistribution is Unauthorized&#8221; that the owner was in violation of some law.&#160; As far as I know, the Girl Scouts do not regular commerce, and the printing on the side of the box does not constitute a binding contract.&#160; Re-selling the item is not&#160;a legal offense.&#160; Since he never claimed to be an &#8220;authorized&#8221; reseller, I see no dishonesty.&#160; Some would go as far as to say that it was unethical to sell the boxes when such a message exists on the box, and thus dishonorable.&#160;&#160;Ethics is far more subjective than law, but I would still say that this is not beyond the bound of ethics because no official agreement exists.&#160; Unless there is an official agreement, the Girl Scouts have no right to dictate how someone uses what they bought.<\/p>\n<p>I will, however, concede that selling Girl Scout cookies for a profit has the potential to cut into Girl Scout&#8217;s cookie revenue.&#160; When someone pays $12 dollars for Girl Scout cookies from a Girl Scout, they get 4 boxes and $12 goes to the Girl Scouts.&#160; At Valero, $12 gets you 3 boxes and only $9 dollars goes to the Girl Scouts.&#160; But we are also talking about a luxury item, and most people are going to get however many boxes they want without much regard for the price.&#160; As such, the lost revenue angle is not an overly&#160;compelling argument.&#160; And remember, regardless of where you get the box from, $3 bucks DOES go to the Girl Scouts.&#160; <\/p>\n<p>Sounds to me like the Girl Scouts are unhappy because they didn&#8217;t think to raise the price to $4 a box first.&#160; <\/p>\n<p>Perhaps the real solution to the problem would be for the owner to stockpile cookies until AFTER the Girl Scouts have done all their selling.&#160; Then four months later when everyone&#8217;s supply of Thin Mints, Tagalongs, and Somoas are depleted, put them out on the shelves for $6 per box.&#160; I&#8217;m addicted to Somoas, so I know I&#8217;d be pretty tempted to pony up for a box.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Action 19 News in Ohio was hot on the investigative trail of a Girl Scout cookie scalper today.&#160;&#160;Apparently, the owner of a Valero gas station in Parma Heights, Ohio bought a LOT of Girl Scout cookie boxes and is selling them in his store for $4 dollars.&#160; Girls Scouts, on the other hand, peddle the&#8230;&hellip;<\/p>\n","protected":false},"author":46738,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"coauthors":[],"class_list":["post-2456","post","type-post","status-publish","format-standard","hentry","category-blogs"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/posts\/2456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/users\/46738"}],"replies":[{"embeddable":true,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/comments?post=2456"}],"version-history":[{"count":2,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/posts\/2456\/revisions"}],"predecessor-version":[{"id":41492,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/posts\/2456\/revisions\/41492"}],"wp:attachment":[{"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/media?parent=2456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/categories?post=2456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/tags?post=2456"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.red-gate.com\/simple-talk\/wp-json\/wp\/v2\/coauthors?post=2456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}