Time Flies

Time passes so fast. I always wanted to update this blog, but... remains as a thought. Anyway, today I am determined to pen down a few words. Two weekends ago, went to Ipoh, the capital, state of Perak for a "makan-makan" or eating trip. The trip was good and enjoyable, although it was a bit hot in the afternoon. Foshan Restaurant is fame for its Dim Sum, it was really good. I want to go again. :)

Price Hike - Who to blame?

In economic theory, Adam Smith says supply create it owns demand. Then Keynes says, demand create it owns supply. Another way round. Which one is right, which one is wrong? Both right or wrong? There are four posibilities. Anyway, what I want to say today is not wrong is right, who is wrong.

Recently, world crude oil price soar to record price of USD 140 per barrel. Fuel price at the pump increase too. Other essential items such as milk powder, cooking oil etc increase too. Read http://thestar.com.my/metro/story.asp?file=/2008/7/7/north/21737468&sec=North. So, you see, everyone feels the pain.

I read an interesting article today. Read http://www.penangtuapui.com/2008/07/hawker-food-ah-leng-char-koay-teow.html?showComment=1215482820000#c4397804169196127600 posted by a group of food savy individuals. Yes, this is what I would like to discuss today. Why, in this high inflation period, a plate of Char Koay Teow costs RM4.50, while special Char Koay Teow costs RM8. Never in my life I have a RM8 Char Koay Teow. I can afford to pay, but not willing to pay this price for a plate of Char Koay Teow.

It seems that Chinese hawker food price skyrocketed from year to year because nowadays Chinese no longer eat to live but live to eat. Filling up the stomach is no longer the main priority but the taste and the ingredients come first. Eat with happiness and satisfaction.

We are part to be blame for the high price because of our willingness to pay for RM5 for a plate Char Koay Teow, adding mantis prawn, double eggs and etc, till the price reach RM8 per plate.

Example: the Kg Jawa (near the FIZ 2 gate, near my workplace) famous char koay teow starting price is RM3.30 compare to a normal Wan Tan Mee might only costs RM2.50. Why different RM0.80, because of the willingness to pay. People might argue, 'hey, you are getting 2 big prawns'. Yes, the satisfaction is the 2 big prawns. But personally, I think this is a bit exorbitant.

Because of our demand (the consumer) and most importantly, the willingness to pay, a plate of Char Koay Teow can costs RM5/RM8. In this case, who is right? Adam Smith or Keynes? Supply create it owns demand or demand create it owns supply?

Imagine one fine day, all the people suddenly change, unite as a group to boycott those stalls selling RM4.50/RM5/RM8 per plate Chay Koay Teow, what will happen? Will they force to bring down their price or egoistically maintain these prices? Usually those hawkers dare to display these prices are ego, because the demand is there and customer needs to tolerate their mood swing. :)

I am not anti Chay Koay Teow, instead I love it. The same goes to nasi kandar outlet. But what I am trying to say is, as consumer, we can "balance up or unbalance the market'. It's our call and exercise it dilligently.