Profit or Ethic

Recently is a hot selling period in our college. I would say that because October is the month everybody is selling things for Entrepreneurs development subject. The selling ranges contain all diploma and degree student who taking this subject. Hence, everybody is sell sell sell.

Since everyone are trying to earn as much as they can, at least break-even, well, let’s talk about price setting. Of course, the purpose of selling is earning the profit, therefore we will mark up the selling price, but, how much should we mark up, exactly how much we only considered as EARN? 

The definition of EARNING to everyone is big difference. Some will satisfied with only earning 10 per cent from the product, some are not.

So, actually how much should we mark up the selling price?

Case 1:

There will be a famous singer’s concert in next month. Concert tickets were sold out immediately at the first 2 hour of launching. Part of the buyer actually was take advantage to do a business in this case. They bought all the ticket and resell it in the higher rate. In the end of the day, the one really desire to watch this concert were no choice but have to buy more expensive ticket from those ‘reseller’. Those ‘reseller’ really earn profit from it, good business as well, but is this business ethical?

In case 1, is this action ethical? These are the buy and sell business should we say it is wrong?

In my opinion, it is wrong. And I don’t think this kind of business is legal.

First, those ‘reseller’ did not get any permission from organizer for selling concert ticket in higher price.

Second, they probably causing someone who really wants to watch the concert lost their chance to attend the concert. They buy all tickets that otherwise would go to fans, and then sell them at ridiculously high prices. This makes the tickets unattainable to many people. Ticket scalping is not a legitimate business and it hurts the entertainment business.  I think that ticket scalping needs to be banned so that people can enjoy the arts rather than focus on the profits for charging exorbitant rates.

Case 2:

I am taking entrepreneurship development subject in this semester and I decide to selling pepper spray which call Stoper. The stock I get is from one of the reseller of Stoper- INTI college student. In this supple chain, the mark up price is actually in very top, while in my turn I can’t able to earn more from this supply chain. But I am still taking from them because they are giving me consignment agreement. Consignment agreement is a contract that I can take the stock without paying at beginning, after I sold the product then only pay. If can't sale those stock can just return to them. It is zero cost and zero risk for our business actually.

After selling this product few weeks, when my business was on the track, I plan to re-order more stock. But this time I was thinking, why don’t just take the stock directly from main supplier of Stoper? It will be more profitable to my business while the cost is lower. However, a question poke up in my mind, is this action ethical?

While in case 2, should I leap though my original supplier and directly order the stock from main supplier of product which actually their supplier as well?

Initially I don’t think there is any issue for me to order from their supplier, however, my subject lecturer told me that it is not ethical because I am not gratitude while they were initially supplies me in very beginning. And my thought was, as a consumer, I have my authorized to get a better supplier. So,  I decide to take the product from main supplier.   

See, sometime business is business. As long as my action will not threat to theirs business, it will not be unethical. 

I was wondering in business world which is more important? Of course is profit. 

However, earning profit in ethical way is always the most importance.