Examples of Businesses Taking Advantage of COVID-19 to Gouge Consumers

modsec802 on 09/02/2021 - 19:46
Last edited 10/02/2021 - 07:03 by 2 other users

I was thinking of many examples where businesses have used COVID-19 to gouge consumers:

  • restaurants takeaway stores charging 50c+ for small sachets of sauce when they’d offer a free shared bottle before
  • restaurants not offering tap water as it’s not COVID safe and only selling bottled water instead
  • cafes not allowing use of keep cups and charging extra for disposable cups
  • increased demand for local beach hotels meaning accommodation at all time high prices and booked out months in advance
  • new car dealers being able to sell any car in stock for RRP or above RRP on selected models
  • employers offering no index based pay rises insisting employees should feel lucky to have a job at all
  • Brisbane city council cancelling kerbside collection for over two years forcing people to transport and pay to dispose of their own bulky goods

Any other good examples you can think of?

Financial

Comments

  • ozhunter on 09/02/2021 - 19:49
    +34

    restaurants takeaway stores charging 50c+ for small sachets of sauce when they’d offer a free shared bottle before

    That doesn't mean they gouging customers.

    • Ryanek on 09/02/2021 - 19:51
      +9

      Yeah I'm happy to pay that to support my local.

    • modsec802 on 09/02/2021 - 19:54
      -5

      Making a permanent switch to paid sauce isn’t?

      • ozhunter on 09/02/2021 - 19:55
        +15

        With snap lockdowns, reduced customers, and what not, cost of business has likely gone up.

        • modsec802 on 09/02/2021 - 19:58
          +6

          JobKeeper where they get their wages bill subsidised including owner operators who employ themselves and family members

          • dizzle on 09/02/2021 - 20:58
            +5

            @modsec802: How are you to know whether they have access to these payments? Sometimes in these family run businesses, the families work extra hours off the books to spend less on staffing. Does that mean you're happy to pay more once Jobkeeper ends?

          • Kangal on 09/02/2021 - 23:31

            @modsec802: Sounds like modsec802 went to Yatala Pies recently…

            • lookingforTV on 11/02/2021 - 09:54

              @Kangal: Wow, does Yatala Pies now charge for sauce? I am bit torn about that as I like eating pies almost drenched in sauces..

              • Kangal on 11/02/2021 - 12:06
                -1

                @lookingforTV: Yeah, I think they charged me $1 for sauce. Didn't know about it until payment window when I had loose change ready, was peeved but was more hungry.

      • ChatCPT on 11/02/2021 - 17:19

        who said its permanent

    • kaitoivan on 22/02/2021 - 09:45

      My fav Thai restaurant had 20% discount for phone order during Covid lockdown! What an inconsiderate bastard!

  • dmbminaret on 09/02/2021 - 19:52
    +1

    Halting use of self service coffee machines at convenience stores and having to pay a premium for baristas to make.

    • jv on 11/02/2021 - 17:23

      and having to pay a premium for baristas to make.

      My barista charges $400 / hr for advice…

  • sangohan on 09/02/2021 - 19:53
    +20

    If you feel they are gouging you, just don't go. Market forces will set in to find the natural balance.

    • modsec802 on 09/02/2021 - 19:59

      I’d love not to go to work because my employer won’t keep my salary at CPI

      • tsunamisurfer on 09/02/2021 - 21:38
        +18

        Again.

        If you believe your pay is so below market rates. Please leave and find a better paying position.

        • modiika on 11/02/2021 - 10:08
          +8

          In an individual situation, an Employer has way more power than an employee. SO while yes, OP should move job if he can and if he feels that way. That does not mean he is not being ripped off and doesnt have a right to complain.

          If we didnt allow unions, and didnt have minimum wages, most jobs would pay a lot less. The market isnt about the value you provide, but the most it can squeeze from you.

          Many businesses have been impacted hard by covid no doubt. But others have done very very well, as consumers have shifted their spending from holidays and meals out to other things.

      • serpserpserp on 11/02/2021 - 18:30
        -1

        Given CPI is <1% for the past 12 months to December 2020. Keeping your salary stable is pretty close.

  • ozhunter on 09/02/2021 - 19:53
    +12

    restaurants not offering tap water as it’s not COVID safe and only selling bottled water instead
    cafes not allowing use of keep cups and charging extra for disposable cups

    They're just following the new regulations to keep us safe, lol.

    new car dealers being able to sell any car in stock for RRP or above RRP on selected models

    supply/demand?

    • modsec802 on 09/02/2021 - 19:56
      +10

      There’s no regulation about tap water - only you can’t have a help yourself station: https://www.covid19.qld.gov.au/__data/assets/pdf_file/0019/1…

      • Zephyrus on 11/02/2021 - 11:35
        +3

        You should check if they have an alcohol license, I don't know if this is true for QLD, but in other states, you have to offer free water if you sell alcohol. You don't have to be drinking the alcohol to take advantage

  • djkelly69 on 09/02/2021 - 20:04
    +1

    forcing people to transport and pay to dispose of their own bulky goods

    Oh dear god no!

    • markathome on 09/02/2021 - 20:26
      +3

      I feel this is actually one of the fairer criticisms. If you don't have a car and need to exit a city (as many people might during this time), not having bulk good disposal could really hurt.

      • Slinky0111 on 09/02/2021 - 21:30
        +5

        How often would it occur that the kerbside collection was happening on the same weekend you were moving out ? There is still bulk disposal at the waste transfer facility (tip), they just have cancelled the yearly/every two year maybe? Kerbside collection

    • dmbminaret on 09/02/2021 - 20:32
      +2

      I'm pretty sure it's part of their rates. I'm in Redlands and don't have curbside but do have free tip fees for residents so BCC is probably just shirking what rate payers are already paying for.

      • dizzle on 09/02/2021 - 21:01

        As far as I am aware BCC have yearly vouchers where they can use the local tip for - X number of trips a year.

        Saying that I do like that benefit of living in Moreton Council

    • serpserpserp on 11/02/2021 - 18:31
      -2

      I also wept.

  • mbck on 09/02/2021 - 20:16
    +7

    I wouldn't say gouging. I mean i know some restaurants that have halved if not more of their revenue. So to keep their business viable now and into the unknown future, they have to take steps now, however small. Plus they also don't want to have their business name in the news, resulting damage, if not closure, of their business.

    Ps, businesses are required to have a covid safe plan. This includes every single thing the business are doing to minimise risk. In the event of an infection, the dhhs will require these documents and if found to be inadequate, the business can be fined.

    • modsec802 on 09/02/2021 - 20:26
      -8

      They’d be getting their wages bill heavily subsided by the taxpayer with jobkeeper

      • mbck on 09/02/2021 - 21:36
        +9

        Erm ok you've mentioned that above a few times. well that's finishing up in march. And if you've ever tried to make something from scratch or be in business, then you know you have to plan for the future. You can't just sit there and hope customers will magically appear out of nowhere the minute it becomes April 1st and your revenue is back to normal overnight.

        The fact of the matter is, the world has changed. People and businesses have to adapt to survive. You can keep thinking about the past, but that will do you no good.

      • Handsoff on 11/02/2021 - 10:00
        +1

        Tell that to all the businesses that had to close up because they couldn't afford to keep running.

  • SF3 on 09/02/2021 - 20:19
    +2

    How could we not forget scalping of 🧻, hand sanitizer, 😷 by some businesses.

    • holdenmg on 09/02/2021 - 20:23
      +2

      If you have been scalped, hand sanitizer is the least of your problems.

      • DashCam AKA Rolts on 09/02/2021 - 21:53
        +2

        That'll sting.

        • serpserpserp on 11/02/2021 - 18:31

          Yes definitely do not apply hand sanitizer to head after being scalped.

  • Bonsaichop on 09/02/2021 - 20:26
    +20

    Businesses are there to make a profit and enough money to support not only their staff but the owners as well. As someone who has a small business if I were to have someone on their high horse complaining about price increases when we're just trying to keep our heads above water i'd tell you to leave, never come back and tell your friends too.

    Or perhaps all the small businesses can close down and you can bow down to the mighty chain retailers who can up their prices and you just surrender to them.

    Go on, neg me. I've had enough of people who have never run a business trying to tell me how to run mine.

    edit: yeah neg me more, is that all you have???

    • morse on 09/02/2021 - 20:39
      +2

      Haven’t negged you. I agree, businesses are there to profit otherwise there is no point anyone having one. I think people are fine with anything that is genuine and proportionate.

      What’s your business?

      • Bonsaichop on 09/02/2021 - 21:22
        +18

        We're a specialised retailer so our customer base isn't huge, but we do frequently get new customers and over the past year we've had to up prices by 5-15% as our component supplies have increased in some cases up to 20%.

        We frequently have people complain not only about prices but also shipping and shipping times during covid. Even though our increases are less than the increases we're taking a hit against and shipping is completely out of control because if people (especially international) want it faster, it costs more and if it costs more, there's more complaining.

        On top of that, even though we have to work so much more to earn the same amount as we did in previous years, in the eyes of JobSeeker, JobKeeper and any other incentive we're not eligible simply because we've managed to by working many more hours keep our business afloat instead of letting it run into the ground at a 30% loss.

        Now don't get me wrong, we don't mind working harder, longer to keep our baby going but when people start making assumptions that we're just cashing in on government bonuses then playing our price increases as price gouging it really riles me up. Especially as we have this business to earn an income for ourselves but people expect it to be a charity.

        The irony of it all to me is that most of the backlash we cop are from people who have jobs earning many sums over their own wage for someone else to pay them a small portion of the profits. It just seems so backwards.

        /rant

  • trustnoone on 09/02/2021 - 20:26
    +12

    Companies blaming everything on Covid. While I agree that covid has made things difficult for many companies I swear for many its just the "go to argument" whenever any issues happen.

    • dmbminaret on 09/02/2021 - 20:34

      Any delivery 'service'

  • Heaps for Cheaps on 09/02/2021 - 20:26
    +16

    Kogan charging 1k+ for a normally $200, cheap, nasty, chest freezer or jacking up the price of weights to 5x the normal price. You would think they would at least add premium support for these trash items but they still treat customers like annoying scum.

    Ruslan Kogan used to be on any TV show that would have him, challenging Gerry Harvey to beat his prices and service. You don't see that anymore because Ruslan has sunk lower than Gerry ever has. Kogan have numerous times broken the law, but the profits of these illegal practices far outweighed the fine.

    • GG57 on 10/02/2021 - 09:52
      -2

      Another example of, if you don't like a retailer / supplier, don't buy from them. Problem solved.

      • Heaps for Cheaps on 10/02/2021 - 09:58
        +5

        The OP was asking for "Examples of Businesses Taking Advantage of COVID-19 to Gouge Consumers", not "How to solve the problem of buying from a retailer you don't like."

        Do you work at Kogan or one of it's it's associated businesses?

        • GG57 on 10/02/2021 - 10:07
          -4

          Kogan, and all the other retailers, can ask whatever price they want for their goods. If they have increased their prices as you point out, why would anyone buy from them?
          Problem solved.

          • Heaps for Cheaps on 10/02/2021 - 10:15
            +5

            @GG57: Kogan have been found guilty and fined for deceitful and deceptive practices, and unfortunately for buyers they realise this afterwards.
            I agree with you that Kogan should not be supported for such behaviour. I am glad you managed to solve your own problem because everybody else already knew the solution or wises up to it after shopping at Kogan or any of his brands.

    • phamid on 11/02/2021 - 16:31
      +2

      Already knew it was a gouge with the first word - Kogan

  • morse on 09/02/2021 - 20:31
    +4

    Hmmm… had a think and no, not really that I’ve noticed. If anything there’s been some great delivery and takeaway deals.

    Actually, maybe Myer, Big W, Target no longer doing returns for change of mind on clearance items (sorry can’t remember which for sure brought this in after covid and which ones still have it) but either way I think they’re using covid as an excuse, I can’t see why returning full price items is anymore hygienic than clearance.

    • modsec802 on 09/02/2021 - 20:38
      +1

      I think all the supermarkets had no change of mind returns to stop bulk buying and hoarding

      • morse on 09/02/2021 - 20:44
        +3

        Oh yeah - that definitely makes sense. I think what I’m thinking of is where they apply it to say tshirts, when no one is hoarding tshirts, they except returns on full price tshirts, but not clearance and then blame COVID. I’d rather they just say no returns for change of mind on clearance items because it’s clearance and it has nothing to do with covid. I think Myer actually changed pre covid, which is fair enough. Others are doing it and blaming covid.

    • Ughhh on 10/02/2021 - 09:54

      I'm pretty sure Myer changed the policy before covid.

      • morse on 10/02/2021 - 12:20

        Yeah, they did, my bad. Some changed after.

  • JimmyF on 09/02/2021 - 20:35
    +5

    restaurants takeaway stores charging 50c+ for small sachets of sauce when they’d offer a free shared bottle before

    Always been this way for 'take away' sauce. But I agree 50c is a bit rich, but not a new price point. FYI those sauce packets are not that cheap coming in at around 20c each, so yeah.

    restaurants not offering tap water as it’s not COVID safe and only selling bottled water instead

    For take away? well yeah kinda understandable…. For sit in, haven't seen that yet.

    cafes not allowing use of keep cups and charging extra for disposable cups

    Kinda understandable and its not charging extra, its you not getting a discount for a reusable cup. Slightly different, plus lots of places around here didn't even offer anything for BYO cups :/

    increased demand for local beach hotels meaning accommodation at all time high prices and booked out months in advance

    So supply and demand rules applying? Lots of demand = high prices

    new car dealers being able to sell any car in stock for RRP or above RRP on selected models

    As above

    employers offering no index based pay rises insisting employees should feel lucky to have a job at all

    Been like that for a long time with payrises.

    Brisbane city council cancelling kerbside collection for over two years forcing people to transport and pay to dispose of their own bulky goods

    2 years? Covid has only been around for 1 year, so sounds like this issue has been around for a while then ;)

    • modsec802 on 09/02/2021 - 20:37
      +1

      2 years? Covid has only been around for 1 year, so sounds like this issue has been around for a while then ;)

      Until July 2022

      https://www.brisbane.qld.gov.au/clean-and-green/rubbish-tips…

      For sit in, haven't seen that yet.

      Dine in - common at restaurants I’ve been to

      • JimmyF on 09/02/2021 - 21:24

        Dine in - common at restaurants I’ve been to

        You need to dine in at different places then, as around here its all free table water aka tap.

        Until July 2022
        forcing people to transport and pay to dispose of their own bulky goods

        Well your claim of them forcing you to PAY is wrong, they are sending you vouchers out to use instead. Says so on the website you linked to.

        • dmbminaret on 09/02/2021 - 21:58
          +1

          Well your claim of them forcing you to PAY is wrong, they are sending you vouchers out to use instead. Says so on the website you linked to.

          Picking up = $0
          Taking to the tip = fuel+possible ute/trailer hire.

          • JimmyF on 09/02/2021 - 22:22
            -2

            @dmbminaret: How will you coupe!? Try paying tip fees, then you'll have something to complain about!

            You could always just wait till the 2nd half of 2022 and book a pickup :)

            • dmbminaret on 10/02/2021 - 05:41
              +2

              @JimmyF: I was just pointing out your claim of no cost to the rate payer was incorrect. There are other costs incurred besides the tip fees.

              I'm not even complaining. It doesn't affect me. I might be pissed if I lived in that council area though.

              I know it may not be much money, but anything is better in your pocket for bargains.

              • modiika on 11/02/2021 - 10:18
                +1

                @dmbminaret: It's also a massive hassel not having that service. I didnt even own a car until recently (maybe not fesible in that council area), but you coudl see in an innercity area, where there are lots of sharehouses, it could be a really big burden. To be honest, people are bad at it when the service is offered.

                Honestly, i think it'll just result in more people dumping. It's a very long time to suspend the service so I think a legit complaint.

                • dizzle on 11/02/2021 - 10:33
                  -1

                  @modiika: I think the other side is the scroungers. When BCC announce the pickup dates, they generally don't pick up for several weeks later or longer. They kind of rely on scroungers to reduce the size of pickups (even though they say that's prohibited). The workers picking up they can track and monitor, but the scroungers going through curbside is something they would want to stop.

    • morse on 09/02/2021 - 20:54

      I agree that the sauce packets are cheap and the business has to pay for them so why not the consumer, however in think most consumers find it better if it’s just included in the price of the pie or whatever. I’m a ‘no sauce’ person, but I’d still rather it was included in the price and pay a bit more. I think it’s that most people don’t like hidden extras for what is assumed to be included. Still I happily pay for my 10c wasabi at my local sushi, and accept my free soy sauce - I think because they are just charging for the cost not extra🤷‍♀️.

      • modsec802 on 09/02/2021 - 21:00
        +1

        I don’t really care about the charge per se - more that businesses say “because of COVID we can’t provide free sauce” when really COVID doesn’t really have much to do with it when they could offer a bottle of sauce still to use - they just now want to charge for sauce.

        • JimmyF on 09/02/2021 - 21:21

          If you're talking a bakery I haven't seen a 'free' sauce bottle in decades, eat in or take away!

          If you're talking a pub, then always free sauce, either bottles or packets.

  • Jimothy Wongingtons on 09/02/2021 - 20:37
    +3

    Charging for sauce for my meat pie.. I’m in two thoughts about this.

    1. As a small business owner, costs is costs
    2. As an Aussie meat pie aficionado SAUCELESS PIE - that’s borderline un-Australian.
    • plmko on 09/02/2021 - 20:59
      +10

      You forgot

      3 . Jack up the price of a meat pie and include free sauce

      That's the Australian way.

  • elgrande on 09/02/2021 - 20:38
    +18

    Does anybody else remember the good old days before COVID when you would shut the door of the lift so somone else couldn't get on.. not because of COVID but just to be an arsehole?..

    • ThithLord on 10/02/2021 - 09:43

      We had a Toll delivery driver at my work that I couldn't stand, musty ol' woman that annoyed the heck out of me (always asking for help loading her van with deliveries! Woman, that's your dang job!!). I had an early mark on a Friday afternoon so I was leaning back against the wall at the back of lift, sunnies on, lazy as a sloth position when Lorainne came walking directly towards me, 5 or so metres in front of the lift. "Hold the lift, Thithlord!" I didn't move one inch, just watched the elevator doors slowly close in front of me, looking directly at her, and shut in her face.

  • arkie0 on 09/02/2021 - 20:54
    +3

    The brothel my friend usually goes to doesn't accept walk in and you have to book in advance, but they make you pay a booking fee… how outrageous.

    At least you don't have to wear masks as its not practicable to receive that kind of service wearing a face mask.

    • modsec802 on 09/02/2021 - 21:01
      +11

      you forgot to put “my friend” in quotes

    • dizzle on 09/02/2021 - 21:07

      At least you don't have to wear masks

      It's not covid they are worrying about :)

      • [Deactivated] on 11/02/2021 - 09:29

        I am sure some areas of the body still require a mask

    • plmko on 09/02/2021 - 21:08

      Well are you still booking a time? Or would you rather they say "sure sure come, we've open" only to find they say that to everyone that calls and 10 different stooges show up for the same time slot.

      • elgrande on 09/02/2021 - 21:25
        +1

        So much material.. where to start…

      • modsec802 on 09/02/2021 - 21:31
        +5

        would you rather they say "sure sure come, we've open" only to find they say that to everyone that calls and 10 different stooges show up for the same time slot.

        Pretty sure they all come for the same slot

  • WreckTangle on 09/02/2021 - 21:04
    +8

    Long waits on hold or webchat unavailable “due to covid”. Even though the call centre is Aus based and people can do this job from home if need be.

    • JimmyF on 09/02/2021 - 21:26
      +4

      yes I find this one funny, sure during the rapid lockdowns I get the delays. But we are 12 months on. Surely your business has worked out a way for call centers to be 'working' at full cap by now.

    • fatal on 09/02/2021 - 21:37

      Yeah but that doesn't mean the systems are up to par for a distributed workforce.
      The vast majority of call centres are simply not equipped for the rapid change to WFH and have to make fundamental changes in the support system to allow this.

      In the meantime, the office is running at something like 25-50% capacity to allow for social distancing.

      EDIT: I'm replying to the original comment, but yes 12 months on they definitely should have completed the changes by now.

  • yoyo6 on 09/02/2021 - 21:17
    +5

    They told me in the supermarket that they are no longer issuing rain checks because of Covid. I can't see the connection

    • modsec802 on 09/02/2021 - 21:32

      Rain checks cause COVID?

    • spaceflight on 11/02/2021 - 12:08
      +1

      Unpredictable supply and demand

  • Seraphin7 on 09/02/2021 - 21:47
    +2

    Maybe it's just me, but I've not witnessed any egregious "gouging" at all.

    Yes, certain prices have increased due to supply and demand issues, but these have mostly been constrained to discretionary purchases (e.g. holiday accommodation and cars), with the possible exception of electronic gear to facilitate work from home going back to last year.

    There are any number of other problems that are just BS that have used corona as the excuse, but I can't say price gouging is one of them.

  • Randxyz123 on 09/02/2021 - 22:39
    +1

    restaurants not offering tap water as it’s not COVID safe and only selling bottled water instead

    Really? I asked for a glass of water just the other day, was handed it no problems.

    I'm pretty sure the rule is still if they serve alcohol they have to serve water for free. Only exception I've ever seen was a pub in the sticks relying on recycled water and not having drinking water.

    • [Deactivated] on 10/02/2021 - 09:02

      I'm pretty sure the rule is still if they serve alcohol they have to serve water for free.

      This

    • modsec802 on 13/02/2021 - 11:04

      Place I’m specifically thinking of was a cafe and hence unlicensed

  • Drakesy on 09/02/2021 - 23:01
    +2

    You seem to confuse gouging with operating a business to covid protocols.

  • [Deactivated] on 10/02/2021 - 09:02
    -1

    I think you're crying wolf. No one here is buying into it…

  • jonkvh on 10/02/2021 - 12:55

    What about the price on Ansell latex gloves 100 pack, use to be $10 now $18.

  • minniethemoocher on 10/02/2021 - 13:43

    I wouldn’t call it gouging customers but I have seen a lot of businesses use Covid-19 as an excuse to not provide good adequate service. For example for example it was impossible to talk to a telco for months, or just recently I bought a sim from Woolworths mobile which to 3 weeks to arrive and they blamed COVID. It’s been over a year so businesses need to stop using it as an excuse unless is a a hygiene or safety issue.

  • avoidfullprice on 10/02/2021 - 14:17
    +1

    Postman avoids touching the door bell to tell me the package is left at the front, and then signs the package on my behalf without my knowledge. Cuz, covid safety. I don't touch my door bell to get inside the house everyday, just quietly.

    Good news is they don't do it for every delivery thank f.

  • [Deactivated] on 11/02/2021 - 09:28
    +4

    Australia post and its companies blaming covid for slow postage but still charging full price (for items such as express post)

    • dizzle on 11/02/2021 - 10:27

      Quality of service may have gone down, but I doubt it costs them any less to deliver a package than it did last year (still goes through the same steps). So I wouldn't have expected the prices to be affected.

    • spaceflight on 11/02/2021 - 12:10

      Why should the price have decreased?

      • [Deactivated] on 11/02/2021 - 16:31

        when you dont deliver your service promise of next day delivery for express post. why should the customer pay a premium?

  • pformag on 11/02/2021 - 09:40
    -1

    Op has no idea what has actually happened to anything disposable that Australians import. 99% of takeaway items are imported from overseas. The raw material has increased 40 to 60% for plastics, paper, board etc. Shipping has gone over 600% up per container. Your local restaurant in the next month are going to lift that suace cup to 70c. All your coffees etc are going up in March, as the cost have gone way up. Covid has literally pooped on most supply chains outside of Australia. Don't get me started on single use disposable gloves

    • meong on 11/02/2021 - 14:17

      im keen to know how you came up with these %%%

      • pformag on 11/02/2021 - 14:44
        +1

        Shipping is supposed to be 60% not 600%. Typo.

        Mid 2020, we were paying $1000 USD for a 40ft from China. Now is between 3700 -4500 USD. Not an issue if the products are high value, but low-cost takeaway items, that is a massive cost increase.

        In regards to raw material. Just plastics is up. Looks like a Tesla share price.

        http://www.theplasticsexchange.com/Research/WeeklyReview.asp…

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