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A $99 case of bottled water? Texas stores accused of price-gouging in wake of Harvey.

KSweeley

Member
WaPo reporting about price-gouging accusations in Texas:

$99 case of bottled water.
$20 per gallon for gas.
$8.50 for a bottle of water.
Houston-area Best Buy, $42.96 case of bottled water, $29.98 for a case of SmartWater
$60+ for two cases of beer at a RaceWay gas station: https://www.washingtonpost.com/news.../?utm_term=.df6731a5ab26&wpisrc=nl_amk&wpmm=1

One station sold gas for a whopping $20 a gallon. A hotel reportedly charged guests more than twice the normal rate. One business sold bottles of water for a staggering $99 per case — more than 10 times some of the prices seen online.

As people in southeastern Texas face the devastating floodwater left by Hurricane Harvey, they are also grappling with predatory businesses that are selling basic necessities at astronomical prices. As of Wednesday morning, the state attorney general’s office had received 684 consumer complaints, a majority of which involved price-gouging of bottled water, fuel, groceries and other necessities.

In a few cases, people reported having to pay $3.50 a gallon for gas in Houston, about a $1.30 more than the average gas price in the area, said Kayleigh Lovvorn, a spokeswoman for Paxton’s office. A Houston convenience store charged $20 a gallon, she said. It’s unclear if the jacked-up rates were the result of price-gouging or if the shutdown of refinery operations in the wake of Harvey was a factor, but the attorney general’s office is investigating.

Meanwhile, some businesses sold water bottles for $8.50 each and cases for $99, Lovvorn said.

Twitter users have shared a picture of bottled water being sold Friday at a Houston-area Best Buy for more than $42 for a case containing 24 bottles. Online prices from other retailers range from $16 to about $30 per case. The company said that a few store employees decided to sell cases of bottled water even though Best Buy does not sell them by case.

Nb3pEo2.jpg


“This was clearly a mistake in a single store,” Best Buy spokesman Shane Kitzman said in a statement. “We feel terrible about this because, as a company we are focused on helping, not hurting people affected by this terrible event. We are deeply sorry that we gave anyone even the momentary impression that we were trying to take advantage of the situation.”

Kitzman said the company does not have pricing in its computer system for cases of water. The employees priced the cases by multiplying the cost of one bottle by the number of bottles in a case, “arriving at a number that is far, far higher than normal,” Kitzman said.

At a Best Western location in Robstown, about 20 miles west of Corpus Christi, 40 guests were reportedly charged far above the normal rate. The overcharging was uncovered by NBC affiliate KXAN. A crew from the station booked a room and was charged $289.99 a night, according to KXAN. The total, $321.89 including taxes, is nearly three times the normal rate of $119 a night.

Best Western spokeswoman Kelly Dalton said in a statement that guests at that hotel have been reimbursed. She said the company is severing ties with the Robstown location, describing the actions “egregious and unethical.”

In Corpus Christi, a RaceWay gas station drew ire after a woman said she was charged more than $60 for two cases of beer, ABC News reported. RaceWay told the station that the overpricing was caused by a clerical error, not price-gouging. Ashleigh Womack, spokeswoman for RaceTrac Petroleum, which owns RaceWay, said the store in question is operated by an independent contractor who has control over pricing of store merchandise.

The Texas attorney general’s office is urging people to report possible cases of scamming and price-gouging by calling 800-621-0508 or emailing consumeremergency@oag.texas.gov.
 
Honestly I don't see the big deal about Best Buy. They sold 24 packs of water for the same price as they sell one bottle x 24. That's not exactly price gouging.
 

Geist-

Member
Kitzman said the company does not have pricing in its computer system for cases of water. The employees priced the cases by multiplying the cost of one bottle by the number of bottles in a case, “arriving at a number that is far, far higher than normal,” Kitzman said.
I guess I can understand that. I mean, it's still kind of shitty, but these bottles are probably supposed to be sold individually.
 

Denali

Member
Kitzman said the company does not have pricing in its computer system for cases of water. The employees priced the cases by multiplying the cost of one bottle by the number of bottles in a case, “arriving at a number that is far, far higher than normal,” Kitzman said.

This is the only one that sounds like true mistake.
 
If Best Buy cares so much is that Best Buy manager going to be fired?

Riiiiiiiiiiiiiiiiiight

I mean, it's clearly a mistake by an employee. You can see right next to it that the Smartwater pack is a more standard price. Someone took the price of one bottle and multiplied it by 24.

There are mistakes and there is obvious gouging. Some of the other examples are more worth going after. A large national chain isn't going to be getting into this because the bad press is too much. You generally see gouging with small businesses or franchised places such as gas stations - where there is a local owner just licensing the brand but isn't really corporate controlled directly.
 
Riiiiiiiiiiiiiiiiiight

The explanation does make some kind of sense:

Kitzman said the company does not have pricing in its computer system for cases of water. The employees priced the cases by multiplying the cost of one bottle by the number of bottles in a case, “arriving at a number that is far, far higher than normal,” Kitzman said.

They get bottled water in by the case at Best Buy, but only sell them in singles, pre-chilled in refrigerators. The singles are jacked up in price, just as they are everywhere you would buy them. Because Best Buy's computer system didn't have an entry for a case of water, the employees were essentially ringing up each individual bottle of water when selling a case.

Clearly management should have stepped in and seen how wrong this was, but there is a shred of a legitimately innocent explanation for how it started.
 

FreezeSSC

Member
I could maybe understand the small stores thinking they'll get away with it but bestbuy? Wtf were you thinking everyone has smartphone now a days and will post that shit on social media.
 
The Best Buy one has been covered a few times here already.

I could maybe understand the small stores thinking they'll get away with it but bestbuy? Wtf were you thinking everyone has smartphone now a days and will post that shit on social media.


When you don't have a mechanism to sell the case at a price (because they don't sell them that way), the next logical thing to a store employee would be to take the retail price of one and multiply it. Not knowing that individual prices are much higher than bulk prices.

It shouldn't have happened, but it isn't nefarious.
 
I mean, it's clearly a mistake by an employee. You can see right next to it that the Smartwater pack is a more standard price. Someone took the price of one bottle and multiplied it by 24.

There are mistakes and there is obvious gouging. Some of the other examples are more worth going after. A large national chain isn't going to be getting into this because the bad press is too much. You generally see gouging with small businesses or franchised places such as gas stations - where there is a local owner just licensing the brand but isn't really corporate controlled directly.

That case of Smart Water retails for no more than $16.
 

Glix

Member
Can texas legally lock prices until things get under control?

I'm unsure as Texas has statewide bans on many types of regulations. Free market and all that.

For example, counties and townships and cities within texas are not allowed to create fire safety codes due to statewides laws, even if they want to.

I know that the state I live in, NY, has strict protections against this sort of thing.
 

Kite

Member
The Best Buy picture is misleading and of course a bunch of idiots are eating it up. The Dasani price is an employee fucking up and the $29 Smartwater 12-pack is the normal price.

water.png
 
Are you new to Earth? Vending machines sell a 12oz can of soda for $1.00 but you can buy a 24 pack for $5 at the store.

That's not how it works either. Stores will get 24 packs of water but also single bottles that come in as 24 that are meant to be sold individually. The single bottles are always more expensive but in emergencies like this stores just put out the entire pack of individual waters and sell them together. It's not a bulk item. It's like buying a box of 2 liter coke bottles, you don't get a bulk discount simply because it's in the box.
 

MG310

Member
“This was clearly a mistake in a single store,” Best Buy spokesman Shane Kitzman said in a statement. “We feel terrible about this because, as a company we are focused on helping, not hurting people affected by this terrible event. We are deeply sorry that we gave anyone even the momentary impression that we were trying to take advantage of the situation.”

This happened at Best Buy stores after Hurricane Sandy too.
 

rrs

Member
But they don't sell them by the case... It's not in their system.

So if they didn't put them out in cases and someone stocked up on water at Best Buy by buying individual bottles, the price would be the same.
It doesn't sound like these cases were meant to be sold as a single unit though. I'm sure that's just how they are delivered. They usually cut those open and stick then in the fridges at the checkout lanes.
The smartwater clearly has a UPC on the package, the other water may not.

However, I don't see why a manager couldn't price override every bottle's cost down to a more appropriate bulk msrp.
 

Zoe

Member
Are you new to Earth? Vending machines sell a 12oz can of soda for $1.00 but you can buy a 24 pack for $5 at the store.

Not at Best Buy, you can't. They don't have a 24 pack SKU in the system.

The fix for this would be for corporate to add the SKU even if it's not sold under normal circumstances.
 

Geist-

Member
The smartwater clearly has a UPC on the package, the other water may not.

However, I don't see why a manager couldn't price override every bottle's cost down to a more appropriate bulk msrp.
A UPC doesn't mean it's registered in Best Buy's system.

As far as the manager is concerned, he probably should have, but I doubt there's anything in the corporate guidelines about selling water in bulk during an emergency.
 

Denali

Member
The smartwater clearly has a UPC on the package, the other water may not.

However, I don't see why a manager couldn't price override every bottle's cost down to a more appropriate bulk msrp.

Someone already pointed out that the Smart Water pricing seems to match what is on Amazon, and I'm sure that the manager has since done so on the Dasani. Oversight.

The $60 for two cases of what I'm guessing was Natural Light is the real disaster here.
 

rrs

Member
That's not how it works either. Stores will get 24 packs of water but also single bottles that come in as 24 that are meant to be sold individually. The single bottles are always more expensive but in emergencies like this stores just put out the entire pack of individual waters and sell them together. It's not a bulk item. It's like buying a box of 2 liter coke bottles, you don't get a bulk discount simply because it's in the box.
I work at a grocery store and our store brand water bottles have a UPC on package for bulk sale, and UPC on each bottle itself for being sold chilled
 

Rockandrollclown

lookwhatyou'vedone
Not sure why people continue to do this when they're part of a franchise. People do this in every disaster, and people lose their franchise/get fired every time. Seems not worth it. You know, and its good to not be a morally reprehensible monster.
 

VariantX

Member
I swear every time theres a natural disaster in the US, a few assholes try and pull this shit. They don't learn from the others that failed, they just think somehow they'll be the ones to get away with it.
 
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