The law of supply and demand is working against lobster fisherman. Long considered an extravagant indulgence, rather than a dinner staple, demand has fallen sharply in the recession. Restaurant demand alone is down 35 percent.At the same time, lobster fisherman in Maine caught 67 million pounds last year. That’s 4 million pounds more than in 2007. And you know what happens when supply goes up and demand goes down. The wholesale price of lobster was roughly $10 per pound in 2006. It’s around $2.25 today.
If you enjoy lobster for dinner, that’s a fine proposition. If you’re on the other side of the equation it’s quite depressing. And the peak season for catching lobster hasn’t even started yet, so prices will likely fall further.
Some lobster fisherman are suggesting that the lobster industry reposition itself downmarket, moving it from the live tank in grocery stores to the frozen food section, alongside frozen shrimp. They figure that when people realize it is just as cheap as steaks, they’ll add it to their weekly shopping list.
I can’t think of a worse way to boost demand than to take a ‘luxury’ good and flood the market with it at a lower cost. It may boost demand and help clear out supply. But there goes the cachet. And good luck getting people to pay $10 a pound again once they are used to paying $2.25.
Be wary of retail firms that try to do the same thing to boost short-term sales. With the economy struggling, we may soon see luxury brands trying to reposition themselves downmarket to appeal to a wider audience. It’s a sure sign of desperation and you don’t want to own those companies. They are destroying their brand exclusivity and will be lucky to regain it.
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Dear Rusty,
Thanks again for your insight and comment. I agree with justifiable anger and also hope the people will not go on the streets to protest.
This will give the banksters and their servants exactly what they “need” to bring in marshall law, internment camps and have “homeland security” battering on their doors.
I believe that individuals acting in concert and going to the strongest law officers in the USA, the Sheriffs; then charging these people through instruments of law - levying criminal charges citing the Constitutional Laws they are breaking, war crimes, crimes against humanity and making criminal loans which have no equal risk to these banks, this is also illegal.
Best wishes for your further success.
Dolores
Mr. Hill: fishermAn = singular fishermEn = plural Why did you keep using the former when you clearly meant the latter????
Who would have thought that investor consultants and economists would have me hanging on their every word? Yet these shakey financial times have me playing fast track education to understand what’s happening, how it happened and what’s best to do about it. I do wish some of your comments could find a much wider audience, reaching those who haven’t thought of signing up to a financial advice newsletter to address their concerns. So many haven’t savings to worry about let alone invest. The news on the air hardly explains anything, it’s just darned hard to find any source of honest to God explanations out in this wilderness. I’ve joined some protest groups and written many letters to my reps which aren’t read, changed politcal party affiliation, knowing it’s a swat at a tidal wave, my efforts creating not a ripple. C-Span has become my mainstay for news these days. Your newsletters help. Yet I have no voice, so many questions and a mountain of frustration. I am old and see the America I knew gone forever. It became dislodged back in the 70’s I think, and it’s never been the same since. Currently, I am looking to seriously move to a foreign country and live out my life quietly, hopefully, at least live somewhat well on what I have. Here, I fear, will see me truly impoverished in the near future, a burden, and no way out of it.
Lobster is from the cockroach family. Hotdogs are no better, but it’s the lesser of the two evils.
Name one vendor/source that is selling any size at $2.25…I cant find any…