Supply and Demand play a key role in our everyday lives even more than we realize sometimes. One example is the used car dealerships near my house. Around tax time, their lots are full of cars with high prices, but once tax season is over they mark down the cars and are willing to do payment plans or make other arrangements that they would never except during their peak season. Another example is when a new pair of Jordans comes out and people are waiting outside the store for them for hours and hours just to get a pair even when their price is the highest. Some people wait in line not knowing if they will even get a pair when they get to the front of the line. Many times the demand is higher than the supply on hand. In my own business, I experienced this recently when I launched my most recent compilation book, Tainted Elegance: Simply Beautiful 2. Amazon had 100 copies on hand the day it launched and that very day it became Out Of Stock because the demand was too high and they ran out of books. Had I have made sure to supply them with more books, I could have prevented that, but I did not want to order too many books and them have a surplus. On the other hand, I ordered a shipment of 100 books for a speaking engagement and only 30 sold on the first day which then caused me to mark down the books the second day, so that I did not end up with 70 books to bring home.
Supply and demand is based on the consumers and their purchasing desires and needs. Without the consumers, a product would be worthless. The materialistic demands of our country have led to higher prices and also the value we place on “NAME brands”. A great example that I have seen of this is during the holidays, you see an abundance of holiday products. Some stores even have specific isles just for holiday themed merchandise. The prices are usually higher than normal, but the stores will usually hold a sale on one or two items to get people into the store to shop. After the holiday is over, all of a sudden everything is marked down to usually between 25-50% off, then a few days later it goes down to 75% off and some places even discount all the way down to 90% off. The demand is higher during the season, but once the holiday is over they discount the merchandise to avoid a surplus of holiday merchandise.