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The downside of discounts


REV. H. MALCOLM GIBBS-TAITT

The downside of discounts

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TODAY I highlight two negatives, one involving discounts and the other the push for women’s equality.

In pricing goods and services, a business has to gauge the percentage mark-up that will encompass all the overheads, including the profits to the establishment.

The business may give a discount for the purchasing of certain goods and services. The cost to implement this may be prohibitive, especially when it pushes up the cost of living. However, it may be considered good for businesses.

When crude oil was selling for US$104.83 per barrel, we were paying BDS$3.14 per litre at our pumps. Furthermore, merchants were using this high price of purchasing oil to deliberately increase the price of goods and services. We accepted this as a reasonable phenomenon.

The price of crude oil was lately US$49.56; we are paying BDS$2.79, a difference of just 35 cents.

Then, some think they made us feel good by stating that by being a member of their organisation, the use of their membership card will allow for the purchase of goods and services at a reduced price, through discounts. 

Any businessperson will know that the giving of discounts has a cost attached to the goods and services. What one hand gives, another hand must take.

Looking at another negative, one body sold the idea that women should concentrate on building careers and get even with men, thus ignoring the need to have children.

When people approach or reach old age, they soon realise that having a pension is very important. If the national workforce is depleted through the lack of sufficient younger people to be a part of the working population, there is a problem; we now see this in our society. Because of a diminishing workforce, people now have to retire at age 67 instead of 65, and it may get higher.

Some people may have given to our society, perhaps more than they have taken. It is therefore not entirely fair for them to be seen in the negative. But, they have contributed, negatively.

– REV. H. MALCOLM GIBBS-TAITT

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