An Egg Story - Instablogs
An Egg Story
Grace Calderon , Quezon City: Aug 13 2008
Made Popular Aug 13 2008

An Egg Story

If your gasoline expenses are busting your budget and the oil price hike is getting to you, take it out first on the eggs. This story will tell you how.

A man eats two eggs each morning for breakfast. Since a dozen eggs won’t last a week, he normally buys two dozens at a time. One day while buying eggs, he notices that the price has gone up. The next time he buys, the price has risen even more. When asked to explain the price of eggs, the store owner says, “The price has gone up and I have to raise my price accordingly.” This store buys 100 dozen eggs a day.

He checked around for a better price and all the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business. The huge egg farms sell 100,000 dozen eggs a day to distributors. With no competition, they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on.

As the man kept buying eggs, the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there. He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily.

Nothing had changed but the price of eggs.

Then, on the week before Christmas, the price of eggs shot up even higher. Again he asked the grocery owner why and was told, “Cakes and baking for the holidays!” The huge egg farmers know there will be a lot of baking going on and more eggs will be used. The man says, “There must be something we can do about the price of eggs.”

An Egg Story

He starts talking to all the people in his town and they decide to stop buying eggs. But this didn’t work because everyone needed eggs. Finally, the man suggested only buying what you need. He ate two eggs a day. On the way home from work, he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.

The grocery store owner began complaining that he had too many eggs on stock. He told the distributor that he didn’t need any eggs. Maybe wouldn’t need any all week. The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn’t have any room for eggs would not need any for at least two weeks.

At the egg farm, the chickens just kept on laying eggs! To relieve the pressure, the huge egg farm told the distributor that he could buy the eggs at a lower price. The distributor said, “I don’t have the room for the f*%$&^*&%* eggs even if they were free!”

An Egg Story

The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again. The grocery store owner said, “I don’t have room for more eggs. The customers are only buying 2 or 3 eggs at a time. Now, if you were to drop the price of eggs back down to the original price, the customers would start buying by the dozens again.” The distributors sent that proposal to the huge egg farmers, but the egg farmers liked the price they were getting for their eggs. Unfortunately, the chickens just kept on laying!

Finally, the egg farmers lowered the price of their eggs, though only slightly. The customers still bought 2 or 3 eggs at a time. They said, “When the price of eggs gets down to where it was before, we will start buying by the dozen.”

Slowly, the price of eggs started dropping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers. The egg farmers cut their prices because the distributors wouldn’t buy at a higher price than they were selling eggs for. They had full warehouses and wouldn’t need eggs for quite a while. And those chickens kept on laying! Eventually, the egg farmers cut their prices because they were throwing away eggs they couldn’t sell. The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price. And the customers started buying by the dozens again.

An Egg Story

Now, change the eggs to gasoline.

What if everyone only bought enough gasoline needed for a period of time, each time they pulled up to the pump? The dealer’s tanks would stay semi-full all the time. The dealers wouldn’t have room for the gas coming from the huge tanks. The tank depots wouldn’t have room for the petrol coming from the refining plants. And the refining plants wouldn’t have room for the oil being off-loaded from the huge tankers coming from the oil fields.

So, the moral of this egg tale is: don’t fill up the tank of your car! You may have to stop for gas thrice a week, but the price should come down. Think about it!

Consumers must learn that they have power in numbers. If we want to cripple those who fleece us of our hard-earned money, we must do it together.

But what this long story about eggs really wants to convince you on is for you not to lessen your consumption of eggs but to cut as much gasoline as you can from your life.

An Egg Story

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3 Stars
Fariha Jamil
Lahore, Pakistan
Hey Grace,

This is really Kool and practical as well ;)
3 Stars
Grace Calderon
Quezon City, Philippines
You’re so quick, girl! I was just thinking of how to word out my next question to you over at the other post, about all things jihad! Hahaha!

Thanks, sis!
3 Stars
Grace!
Hey, this is orthogonal to ’Buy more save more’ marketing strategy which leads consumers into credit card traps. Why just eggs and gasoline, we can apply it to other things as well?
Great post!
:)LOL
3 Stars
Also, Very cute pictures!
:)
3 Stars
Grace Calderon
Quezon City, Philippines
What’s orthogonal, Madhuri? Hehe... sounds like someone clearing his throat! LOL

Yeah, that ’buy more save more’ promo is a sleek marketing strat to get people to spend and spend. No promos are for free!

And credit cards are so oppressive. I cut my credit cards a few years back and I’ve never been happier! If only people will just read the FINE PRINT in credit card contracts, then they’ll know what quicksand they’re willing to jump into.
3 Stars
Grace Calderon
Quezon City, Philippines
And oh yes, thanks! I had a blast choosing those pics. :):)
3 Stars
Oh, by orthogonal, I meant contradictory...when everyone is trying hard to sell more to consumers, you are proposing need based, less buying...
Great idea, reduce demand to control price rise...

:)lol
3 Stars
Grace Calderon
Quezon City, Philippines
Right, Madkat! Isn’t it a great blackmail strategy to those who rip us off our hard-earned money?

It’s been a grand rip-off this oil and peak oil biz! It’s time we call their bluff! Serious!

LOL
3 Stars
Vincent Van Ross
New Delhi, India
Grace,
You have cooked a great omelette with gasoline!
3 Stars
Grace Calderon
Quezon City, Philippines
Thank you, Vincent, sir!
2 Stars
Asmita
Shimla, India
Damn girl!! Do you have any idea that OPEC might set out a bounty on your head for this radical idea you just proposed???? LOLZZZ
3 Stars
Grace Calderon
Quezon City, Philippines
LOLZ Asmita! Hope they really do come after me so I can raise hell about it! Hahaha!

These oil producers very well know that when individual consumers all around the world come together and do this, they will be crippled to quadriplegic proportions! Their lifeline is really in oil retail.

Thanks for dropping by, sis!
3 Stars
Jaiyant Cavale
Bangalore, India
It really is funny how an egg looks so similar to a barrel of oil when it comes to demand and supply, and of course hoarding. Companies always create the inadequacy among people, manipulate prices and in the end it is the small timers who suffer the most. This also reminds me of cellphone networks. Encouraging us to buy recharge cards of higher denominations, so that people talk more and again end up buying more.
3 Stars
Grace Calderon
Quezon City, Philippines
Right, Jaiyant, the consumerist streak fueled by marketers and validated by economists is going mad.

Over here, the streets are clogged with cars, hence traffic congestion, because practically every car company has a ”promo.”

The solution to our dependence on oil (which the oil producers are taking advantage of while laughing all the way to the bank) is in our hands.

We can really be less exploited by them if we want to.
2 Stars
G emeraldsandash.blogs..
Canberra, Australia
Eggs-actly, Grace.
:)
1 Stars
Grace Calderon
Quezon City, Philippines
Egg-sakto, Graeme!

LOL
3 Stars
Grace, I like very much of your metaphor, but now I want to eat omelette ...

I agree with what you said, but the problem is that consumers hardly stop to buy something, even if completely unnecessary. See the case of cell phones, MP3 players and so on.

It would be necessary to have a change of mentality, to make people cease to be consumers and to be just people.
3 Stars
Jaiyant Cavale
Bangalore, India
This is the most sarcastic comment I have read so far.. Consumers aren’t people! Well, you might just be right, with people buying stuff without having a second thought.. And they cease to be people when they stop thinking.. And become zombies!
2 Stars
Grace Calderon
Quezon City, Philippines
Oh, Celso, welcome back! I hope your flu is gone. So, you’re here with the eggs, huh. I was looking for you over there at the anti-feminist thingy.

Yeah. I dunno which one we should diminish first: buyers or sellers. LOL

Everything seems to be intertwined with this law of supply and demand!

Welcome back, bro! Mwah!
2 Stars
Grace Calderon
Quezon City, Philippines
Yeah, Jaiyant, I suspect that the purchase mania afflicts people who are dazed.
2 Stars
People want to express their individuality through consumption, and not through their personality.
1 Stars
Grace Calderon
Quezon City, Philippines
Hmmm...interesting thought: ”People want to express their individuality through consumption...”

I don’t consume much. I’m not expressive of myself much. Hehe..
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