"Overcharging" the rich to offer subsidy to the poor and needy, How moral?

[Filicius]

The model that it seems that some large companies would like to impose consists of charging you based on your capacity and how willing you are to pay for a good or service. Thus, an airline would not charge you the same if you are poor or rich, or if you can wait for a flight or have to do it urgently.

It seems like the next step in the sophistication of what we are talking about here, and adds even more complexity to moral judgment. For example: is it fair that they charge you $2,000 for a flight that would normally cost $500, because they know that you can afford it and you will pay for it because you have to visit a sick relative? how moral?

[Lucano]

i'm considering this topic because of the poor and needy. When we propose ideas that can help keep businesses profitable, we are burdened by the fact that they are probably going to be at the detriment of the poor and needy. So, for conscience sake, we focus on workable ideas that support the poor without affecting businesses negatively.

If you want to build a business, focus on profit so it can continue to run. If it's about humanity, don't do business because that won't be aligned. Business is still a business that seeks profit, no matter which group of people buy from. An idea I suggest trying is donating profits to charity. I believe that this way the business will continue to run and we will continue to help people.

[HyperCodexV]

It is not right to justify that it is for the poor and needy to overcharge people who look rich compared to the locals who are simply poor.

Where is the business ethics in this? to be honest, this will push away customers in these markets and they'll never come back to it.

Remember the quote "Honesty is the best policy". It doesn't define someone's social and financial status. They better be honest in doing business and they'll probably get more help because people like honest ones.

Being honest in business is a remarkable quality and it is a great thing but for a business person who plans to make a good profit, he or she has to realize that honesty does not put money in accounts. A trader or seller who is adding some extra tips on a product is actually not a bad person, he is just trying to also be proactive so he will not lose both is capital and prospective gains. Look it is always easy to preach honesty from a stand point of no obligations but if you have to pay your workers and also take some funds for your own up keep, then you will not think of honesty but how to make good profits.

[o48o]

In certain countries it's normal for businesses to charge customers based on their economic status. If a customer look wealthy or rich, he's charged higher than normal. If he looks poor, and possibly bargains really hard, he could end up getting a fair deal, sometimes below the cost price or eiven free of charge, typically for beggars who have nothing atall to pay... yet such model remains profitable.
Customers who don't get the idea may feel cheated and probably warn others to avoid such places. Others are understanding enough and happy to pay especially since the goods and services are relatively cheap compared to wealthy places. In Rwanda for example, I watched a foreigner trying to persuade fellow visitors to consider this fact, and for the sake of the poor.  
I believe the model is what sustains the poor... businesses are willing to keep price extremely low because of poverty. If some end up not being profitable, they are still able to survive from other people's helps.


I'm considering this topic because of the poor and needy. When we propose ideas that can help keep businesses profitable, we are burdened by the fact that they are probably going to be at the detriment of the poor and needy. So, for conscience sake, we focus on workable ideas that support the poor without affecting businesses negatively.

Why wouldn't this be morally very good? People can choose where they are shopping, and i can't really feel bad for someone paying more when that amount of money isn't as essential to them.

This reminds me of one well off artist i knew, who gave his art for free or with next to nothing to kids or people who struggled with money, and asked ton of money from high society art collectors in his art galleries.

In where i live, if people break speeding limits, their fines will be tied to their salary, because why wouldn't it be? Point of those fees is to make sure you take the offence seriously, and if you are making ton of money, you would wouldn't take those tickets as seriously when they are peanuts to you and just kept driving recklessly.

[Dogedegen]

It is not moral at all, similarly how it is not moral to charge different rates based on the color of your skin or even within poor categories. Not all poor people are poor to the same amount so you could also make differences in prices there. The main reason why some people would agree with something like this is because they are upset that they are not rich as some people are, and whenever any discussion involves some kind of abuse of the rich or forced taxation of their wealth they will always be against the rich. This does not make the rich bad, and it does not make the arguments correct, it just shows how envious people are truly deep down and how they lives are ruled by negative emotions.

Maybe, the they should go for the of offering cheaper alternatives ro discounts with the conditions explicitly put out, that I think will be a better and more transparent approach so people can intentionally choose what fits their pocket without feeling cheated on.

There are already things like that for certain things like discounts for seniors. And that is already enough, maybe we should include it in more places and important services but we should not go more beyond that. In a way the rich are already being overcharged by their own stupid choices, like when they buy some low quality clothes that are expensive just because they have a big brand name on them..  

[Bitcoin Smith]

No one sells a product cheaper than the actual cost unless it don't have any shelf life and they have to sell it for whatever the price they get. Rich or poor that doesn't matter; bargaining skills can get them better deals in the unregulated market, where there is no price tags on the product but how many people are going to a market rather than visiting a superstore which has everything you need and often gives you better deals than the other retailers? They make it possible by bulk orders and sell them at a low margin because they aim to sell more quantity to recover the profits.

And in every country there is something called a tourist price, so better don't showoff as someone who is not around or pay the tourist price.

[sunsilk]

It is not right to justify that it is for the poor and needy to overcharge people who look rich compared to the locals who are simply poor.

Where is the business ethics in this? to be honest, this will push away customers in these markets and they'll never come back to it.

Remember the quote "Honesty is the best policy". It doesn't define someone's social and financial status. They better be honest in doing business and they'll probably get more help because people like honest ones.

Being honest in business is a remarkable quality and it is a great thing but for a business person who plans to make a good profit, he or she has to realize that honesty does not put money in accounts. A trader or seller who is adding some extra tips on a product is actually not a bad person, he is just trying to also be proactive so he will not lose both is capital and prospective gains. Look it is always easy to preach honesty from a stand point of no obligations but if you have to pay your workers and also take some funds for your own up keep, then you will not think of honesty but how to make good profits.

There is nothing wrong if a businessman adds a little more of margin while being honest. But I think if they're dishonest, that's a different thing.

Like if they're telling tales just to add more from the usual price of their products because the customer looks rich, I think that is dishonesty and unusual way of doing business.

We put ourselves in both shoes, I think we understand that as a businessman we need to profit but doing it honestly is doable.

While as a customer, if we've been done by that so we feel cheated and disrespected. We won't be repeat customers anymore.

The cost of operation, salary of employees and everything plus the profit should have been made even before someone comes by as a potential buyer.

[Oasisman]

In certain countries it's normal for businesses to charge customers based on their economic status. If a customer look wealthy or rich, he's charged higher than normal. If he looks poor, and possibly bargains really hard, he could end up getting a fair deal, sometimes below the cost price or eiven free of charge, typically for beggars who have nothing atall to pay... yet such model remains profitable.

A question to ponder.
Why do you think this kind of marketing strategy still profitable, despite the fact that they sell their products or service relatively low for poor people?
I bet the ratio of rich and poor people coming in to avail of your products or service is 1:50.

Now, here's another question. Are these business really selling at a lower price or that was just the floor price + small profit? If so, then yeah, they are selling their products to rich people at a very overpriced deal, and that's gonna be an extra huge profit.

[Sanitough]

I believe the model is what sustains the poor... businesses are willing to keep price extremely low because of poverty. If some end up not being profitable, they are still able to survive from other people's helps.

I have not heard any business that works like that here in my own locality. All business aim high profitability. But there is certain law that applies for senior citizens and persons with disabilities and they can get 20% off when they purchase their necessities, or when they are dining out with their family.

But without that law, all businesses won't care adjusting their price, customers should pay based on the price, regardless of their social status, regardless if they are rich or poor. Or else, they will be kick out and won't get the item if they won't pay it right.

[Questat]

In certain countries it's normal for businesses to charge customers based on their economic status. If a customer look wealthy or rich, he's charged higher than normal. If he looks poor, and possibly bargains really hard, he could end up getting a fair deal, sometimes below the cost price or eiven free of charge, typically for beggars who have nothing atall to pay... yet such model remains profitable.

A question to ponder.
Why do you think this kind of marketing strategy still profitable, despite the fact that they sell their products or service relatively low for poor people?
I bet the ratio of rich and poor people coming in to avail of your products or service is 1:50.

Now, here's another question. Are these business really selling at a lower price or that was just the floor price + small profit? If so, then yeah, they are selling their products to rich people at a very overpriced deal, and that's gonna be an extra huge profit.

I don't think that's fair enough and rich people would be okay for that. Yes, they may be rich but that does not mean that they should tolerate paying overpriced deal, except if they do it for charity and get assurance that some profits will be benefited by the poor. But even so, rich people also compare price, they will maximize their purchase if they know they can get a huge discount or a big sale. I've known some rich friends here, they are more meticulous with prices compared to those who can't afford enough.

[Darker45]

I have no issue when businesses help the poor. Perhaps most of us have this sense of responsibility to the disadvantaged. I also have no issue when expensive businesses are listing their goods and services at exorbitant prices simply because their niche is the ultra-rich. I don't care if they're fooling each other.

But I think I'd take offense when the same thing is offered at different prices to customers depending on their economic status. That doesn't seem fair. Just put a uniform price tag on your product or service for everybody and sell it regardless of their standing.