Monday, December 6, 2010

Pioneering towards more Corruption??!!!

After all the "feedback" that i received since my blog about Platter, i thought it would be a good idea to steer away fom wine for a bit. I dont want you guys to think i'm overly negative about the industry, because i am NOT, but there needs to be some 'tuning'. Anyway, so a while back some big companies were fined for fixing prices on bread and milk, i dont know the exact amount but R500mil rings a bell. So what's going to happen with this money and where does it actually go to? Excuse my ignorance or lack of information regarding this, but i wonder who actually knows where this money is going to. Let's say it is going into government pockets, what do they do with the money and how will the end consumer see any benefit from this?

My thoughts on this:
If they are fined R500mil then they must give back R500mil to the consumer who was over charged for many years and now STILL pays that inflated price! Use the monetary value and get the companies to discount the price of bread and milk UNTIL R500mil has been given back to the consumer. For instance: currently a bread cost R10, they should drop the price with 20% to R8 per loaf. This is a R2 saving which means for every 100000 loafs of bread they sell, R200000 will go off against the fine. Does this make sense? This accumulates over time until they reach R500mill WITH interest.When this day come they will have to be monitored regularly to manage inflation based increases of these products. Do you think that this is a fair option? Without going into it in too much detail it just seems right that us as consumers should benefit from this fine the most and the money shouldn't be used for anything else in SA.

Just imagine Consol, biggest and basically only glass supplier to the wine industry, goes and inflate prices per bottle...who is going to suffer most??

If any of you have other ideas about this topic, please let me know. It will be interesting to hear your thoughts on this.

Next time i will make it a bit more wine orientated, promise!!

Thanks for reading.

Colyn Truter
Twitter: colyntruter