Why would my employer take so much trouble to buy and distribute sodex-ho coupons instead of simply transferring money in our salary accounts? Why would a government allow circulation of a parallel currency in market? Who are the beneficiaries of this ubiquitous coupon system? And since no wealth is being created by this arrangement, who are being fleeced to sponsor its expenses?
One obvious beneficiary is Sodex-ho the company. But it can not be the only one. In fact it is only an incidental beneficiary in the game. Who are the real ones? My guess is - the decision makers - all those who allow this coupon system to run. My employer, despite all the operational and other costs that he incurs in managing coupons, must be gaining out of this system by getting the overall cost reduced. Though I am being paid the coupons of Rs 1000, he must be paying less than that. And the government gains by taxation. But then who are the poor losers?
As an employee I have no option here. I can not demand 1000/- instead of coupons of worth 1000/-. I have to take coupons even if I carry a lunch-box. And after getting the coupons I have to spend them too because they can not be saved - unlike currency notes they come with an expiry date.
A Saturday morning - I want to buy a packet of cornflakes. I step out of my house and walk down to the nearest supermarket. I could have bought that from the corner shop too but I didn't. The shopkeeper doesn't accept sodex-ho coupons. Perhaps the poor guy doesn't have enough money to buy a sodex-ho sticker.
A Sunday evening - A pizza in "Pizza Hut" is a bit hard on my pocket. I come from a middle-class family and for me Rs 250 still means Rs 250. I can, however, afford myself that luxury when the payment is to be done by coupons and not by cash. Since I don't feel the blow, I don't mind the blow. The coupons have to be disposed before the end of year anyway.
So the coupons serve two purposes. 1. They compel me to consume. And, 2. they compel me to consume from the selected stores.
It is not very difficult to make a rough estimate of the business that they do through sodex-ho coupons (since the coupons can not be used anywhere else). These chains grow in size not because they are better than the corner shops but because they are recommended by this system. People have to queue up in these supermarkets to get their goods billed instead of just dial a number and get the goods sent at their door.
The puzzle is solved. The profit these retail giants and restaurants earn - the cake - is shared between supermarkets, employers, and governments. And who is starving here - the man sitting in the corner shop.
The other victim is no one else but I myself. I buy costly Kellogg's because this is what they keep. And thanks to the Sunday evenings at Pizza Hut I have a tummy at 25, and a hideous craving for more!
One obvious beneficiary is Sodex-ho the company. But it can not be the only one. In fact it is only an incidental beneficiary in the game. Who are the real ones? My guess is - the decision makers - all those who allow this coupon system to run. My employer, despite all the operational and other costs that he incurs in managing coupons, must be gaining out of this system by getting the overall cost reduced. Though I am being paid the coupons of Rs 1000, he must be paying less than that. And the government gains by taxation. But then who are the poor losers?
As an employee I have no option here. I can not demand 1000/- instead of coupons of worth 1000/-. I have to take coupons even if I carry a lunch-box. And after getting the coupons I have to spend them too because they can not be saved - unlike currency notes they come with an expiry date.
A Saturday morning - I want to buy a packet of cornflakes. I step out of my house and walk down to the nearest supermarket. I could have bought that from the corner shop too but I didn't. The shopkeeper doesn't accept sodex-ho coupons. Perhaps the poor guy doesn't have enough money to buy a sodex-ho sticker.
A Sunday evening - A pizza in "Pizza Hut" is a bit hard on my pocket. I come from a middle-class family and for me Rs 250 still means Rs 250. I can, however, afford myself that luxury when the payment is to be done by coupons and not by cash. Since I don't feel the blow, I don't mind the blow. The coupons have to be disposed before the end of year anyway.
So the coupons serve two purposes. 1. They compel me to consume. And, 2. they compel me to consume from the selected stores.
It is not very difficult to make a rough estimate of the business that they do through sodex-ho coupons (since the coupons can not be used anywhere else). These chains grow in size not because they are better than the corner shops but because they are recommended by this system. People have to queue up in these supermarkets to get their goods billed instead of just dial a number and get the goods sent at their door.
The puzzle is solved. The profit these retail giants and restaurants earn - the cake - is shared between supermarkets, employers, and governments. And who is starving here - the man sitting in the corner shop.
The other victim is no one else but I myself. I buy costly Kellogg's because this is what they keep. And thanks to the Sunday evenings at Pizza Hut I have a tummy at 25, and a hideous craving for more!
2 comments:
nice thoughts on sodex-ho ... ya the poor corner shop guy is being hit upon from all corners
The motivation of the robbers to rob is much more than the motivation of the victims to protect themselves. Why? Because when 10 robbers are robbing 10000 people, the 10 are gaining hugely but the loss is small for every individual in that 10000.
This is the economics of insurance - the loss is distributed and the profit is concentrated. And it persists because enough pressure hardly ever builds up.
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