Stratos wrote on Nov 23
rd, 2014 at 10:15pm:
freediver wrote on Nov 23
rd, 2014 at 9:39pm:
Oh that. That is economics. Or just plain old common sense. The government charges a business a fee for doing business. That fee gets passed onto customers. Prices go up. Is there anything in particular you disagree with here? Perhaps you'd like to hire a forensic accountant to prove the bleeding obvious?
Common sense tells me not to blindly accept any claim made by anyone, but to base what I know on evidence.
You are also allowed to think for yourself Stratos. If you want to get really technical, you can call it a thought experiment. Perhaps you can tell us what you think would happen to the retail price if a government charged a company a fee for the privilege of doing business with them.
Quote:Someone could suggest that the new increased market share they get from selling halal products would be greater than the cost of certification.
It would be, otherwise they would not certify. That however does not mean that the cost of certification doesn't push up the price.
Quote:Doesn't make it true however, as I have not seen any evidence to support it.
You have stratos. You just cannot see the evidence for what it is. The fact that these companies pay their fees is strong, pretty much irrefutable evidence that they are getting something in return, of more value than the fee.
Quote:If this is really effecting prices then surely there is evidence of it.
Of course. The fact that they are being charged fees is strong evidence that prices are being affected. If on the other hand you expect KFC to give you a breakdown of the million and one separate expenses, including the different expenses of each of their suppliers, that go into a zinger, then no, you never will see the evidence. But this is OK, as most people are more than comfortable thinking for themselves. You should try it some time.
polite_gandalf wrote on Nov 23
rd, 2014 at 10:34pm:
umm we're talking about the domestic chicken market - not packaged beef exported to Indonesia.
Same principle Gandalf. If it costs them money, they will pass the cost on to the consumer, regardless of what their PR department says. Also, the beef industry does not have separated certification for packaged exports, and I expect the chicken industry is the same.
Quote:Before we go any further, please provide evidence that a) Baida (owner of Steggles) are being charged "extortion" halal certification fees and b) the fees are being passed on to the consumer - as you claimed. Lame references to economic theory doesn't cut it.
Of course they don't. The first step to becoming a Muslim is abandoning common sense, economic theory, and any form of knowledge not invented by Muhammed, right?
Quote:I just hope you use the same logic to argue why companies adopting gluten-free labeling or heart foundation labeling drives up the price of - everything.
Somehow I doubt they are charged the same sort of fees for the privilege, but yes you are right - the costs will be passed onto consumers. Only a naive fool would suggest otherwise.
Quote:You don't have a damn clue what fees domestic chicken factories pay - again we are not talking about Beef exports to Indonesia.
I don't have to know what they are to know that they are passed onto the consumer Gandalf. That is the advantage of being able to think for yourself, rather than relying on 'evidence' like press releases from PR departments.
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