Business Ethics

[Suzana]

Thinking of the discussion on today’s show regarding the ethics of having different prices for the same service –
I remember hearing from someone who worked for a dentist – they had three different price lists for the same procedures. Which one they used was apparently based on the sort of clothes their clients were wearing (!), & based on their apparel a judgement made (I guess) on either how much they looked like they might reasonably afford or at least not balk at paying & presumably taking their custom elsewhere.

[steve]

When the police stop a driver for speeding here in the States, they have three different fines that the officers can choose from, depending upon the attitude of the driver, or other considerations!

Apparently, the tax collectors have something similar. One man challenged the amount he was levied for some tax, and he got the amount reduced by half. As he left the tax offices, he began to wonder how the original amount had been justified by the tax collectors, so he returned to the desk and asked what it was that had determined the original levy. The answer he received was, "It doesn't hurt to try!" This was told to me as a true story by the person it happened to.

[darinhouston]

Leaving taxes and government for another day, why would a private individual (or company) have any moral need to maintain uniform "standard" prices for things? A company's price list is one of the closest guarded trade secrets in many cases, and this is because they usually judge what they can "charge" on a sale by sale basis based on the likely willingness and ability for their customers to pay (especially when the sales are company-to-company arms length transactions). In fact, consumer retail sales are a bit unusual for having preset "catalog" prices.

I'm no economist, and your view of capitalism may vary, of course, but the economic theory of it it is grounded on a morality that a collective pressure from customers (and competition) work to hold down prices while individuals or companies acting in their self interest try to sell their goods and services in each case at the highest value possible. The only alternative (this side of original sin on the one hand and Glory on the other), I think puts the prices in the hand of a central individual or group.

It's not as moral as we'll see in the New Earth, but as the saying goes "it's the worst system except for all the others."

[Homer]

It is common in many circumstances to bargain for the best price. People do it all the time when buying a home, car, or many other items. It is especially expected at garage sales, where sellers quite often set the price higher than they expect to get, anticipating they will be offered less. Nothing unethical or immoral at all if both parties agree on price. The only caveat I would offer would be when a person is known to be selling under duress due to circumstances - widow needing money, someone needing money for basic necessities, medical care, etc. Then it behooves us to pay more than asked; it gives you a great opportunity to let them know tactfully that you did it because you are a Christian.

I do not see any difference when business persons decide to charge less, without being asked, to anyone they please for whatever reason they feel appropriate.

[darinhouston]

Homer does raise a good point for Christian consumers. How many who would begrudge a business from its own pricing practices would ever consider paying "more" than asked. I would also add that a Christian business owner might do well to sell at lower prices or even be willing to give a product or service away when the consumer can't afford it or other circumstances exist. I have known people of this sort, including Doctors and building contractors, etc. My grandfather was a country Doctor, and he would regularly provide medical services at his home for folks in the community who never could and never would be able to pay him. From the outside, one could question the differential prices as being immoral, so it's important that the business owner to question his own practices to make sure he's not providing benefit merely due to personal preferences and dishonorable selection criteria but instead based on need and witness opportunities. But, I think we need to be careful not to judge the owners out of an assumption of his position -- how many Christian employees would consider the difficulty an owner might be going through in meeting payroll and would volunteer to waive a paycheck? I'm sure it happens, but (judging by people's attitudes even in this business climate) I don't expect most people grasp how difficult it is for a business owner of any size to "keep it all together," keep pricing and collections and payroll with a consumer who wants nothing more than the best price possible and an employee who wants as much pay as possible and as many "benefits" as possible.

[TK]

in my line of work i run into this with chiropractors (not that i have anything personal against chiros). if someone is involved in an auto accident and they know there is insurance involved, they will charge 3 to 4 times the rate they would charge to someone just walking in off the street for an appointment. at least that has been my observation.

TK