Jambarissa
Well-Known Member
Seeing this a lot on SM and forums. People saying it costs a lot to make hay or breed a foal or train as a physio so we should be prepared to pay more.
To me (and via economics theory) a product is worth what someone will pay, if its rare then demand outstrips supply and people are prepared to pay more and vice versa.
There is an issue that if we aren't willing to pay what something costs to produce then the producer will stop making it and it may not be available in future. This shouldn't happen though, a few will stop therefore the product becomes scarcer and so the value goes back up and it becomes profitable again.
Is anyone else getting this in their feeds? I've read it 3 times today already. I wonder if it does make a difference? I don't go to the cheapest hay supplier I support my usual hay supplier so it already happens , but if he was twice the price of the other I might need to rethink.
To me (and via economics theory) a product is worth what someone will pay, if its rare then demand outstrips supply and people are prepared to pay more and vice versa.
There is an issue that if we aren't willing to pay what something costs to produce then the producer will stop making it and it may not be available in future. This shouldn't happen though, a few will stop therefore the product becomes scarcer and so the value goes back up and it becomes profitable again.
Is anyone else getting this in their feeds? I've read it 3 times today already. I wonder if it does make a difference? I don't go to the cheapest hay supplier I support my usual hay supplier so it already happens , but if he was twice the price of the other I might need to rethink.