RE: [DMCForum] Texas Tea..

["timnagin" <timnagin@xxxxxxxxxxxxxx>]

No, supply and demand.  The supply of lumber wasn't affected by mills being
shut down and unable to produce.  We also didn't see people in Ohio, just to
pick a state at random, panic buying 4x8 plywood.

Greg


-----Original Message-----
From: DMCForum@xxxxxxxxxxxxxxx [mailto:DMCForum@xxxxxxxxxxxxxxx] On Behalf
Of Marc Levy
Sent: Tuesday, September 13, 2005 1:35 PM
To: DMCForum@xxxxxxxxxxxxxxx
Subject: RE: [DMCForum] Texas Tea..

That sounds to me like good business.  They *KNOW*
there is a need for lumber, and they brought stock in
according to need.  If they did not have lumber,
people would complain that they are out of stock on
items they knew would be needed.

My question is, on the sale of a given single Price of
lumber has the profit for Home Depot increased? 

The storm created a need for a extremely un-ordinary
amount of lumber, so Home Depot will sell a larger
quantity of it and realize a larger overall income, 
but the profit-per-unit should remain the same (If I
chose a good example!!) 

The oil companies increased their profits with no
significant increase in quantity of sales. The
profit-per-unit as is how they achieve this...  Price
gouging.


--- timnagin <timnagin@xxxxxxxxxxxxxx> wrote:

> I don't know if they doubled or not, but they
> definitely profited from this.
> The local Home Depot has a huge tent in the parking
> lot with nothing but
> lumber just waiting to be bought.
> 
> Greg

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