Saturday, March 27, 2010

Is it cheating/exploitation?

This is what I heard during conversation between RJs in RadioCity Bangalore recently.
RJ Pradeepa: Sir, Isn't it that wizards, astrolgers, swamijis, witches etc are cheating/exploiting people? (Kannada: Saar, e baba galu, maatavadi galu, swamigalu ella duddu kitkondu mosa madtaralva? )

RJ Upendra (Yes! our Sandlewood actor. He was RJ for a month or so) : How is it cheating/exploitation? (Mosa hege?) Suppose I sell Idli. If cost is Rs.4 and I sell at Rs.6, is it good/bad or cheating? Similarly, people go to these people and give Rs.10 or Rs.100 (in their capacity) and in turn get “peace of mind”. So what’s wrong in it?

I don’t go to such people. Hence I don’t worry.

-----

But, I felt, I was exploited when I went to Horanadu (a holy place near Sringeri) recently.

The hotel guy was quoting prices exorbitantly. I got room for Rs.300 per day. Next day, he charged (remaining rooms) some rooms at Rs.500 and others at Rs.600. In a way, I was lucky about my timing there.

Also, since there was mobile service except BSNL. I had to depend on STD booth. He charged me “STD service charge (Rs.3.40) + STD call charges” for making call.

Isn’t an exploitation?

-----

On the other hand, I charge “x” amount as rent to my tenants. The “x” is decided by me. I say rent is reasonable and fair. Truth is
- I can’t give prompt service (plumbing, electrical or other maintenance works)
- My rents are lower only “relative” to the rents in my locality.

So am I also exploiting people?

----

Some more examples: Exorbitant ticket prices at multiplexes, parking rent for 4 wheelers at IT Park Bangalore (Rs.15 per hour!), fees charged by many schools in Bangalore.

----

However if look into bigger picture, I see more. Let me explain.

Consider I invest in a property and rent it out. To buy the property, I take loan and I pay interest. To cover my interest expenses and other expenses, unless I am doing charity, I am bound to keep rent at certain levels.
Tenant earns money and pays me rent. I cover my expenses, pay interest to bank and retain profits. The bank covers its costs of managing money transactions and makes some profits.
Hence I see a chain of different entities(persons/organizations) involved. The "amount" of profit each entity retains is what decides whether it is cheating/exploitation. However it is difficult to make out if a product/service is reasonably priced or exploitation is at play.

The greed (to make money) easily takes over and it can lead to exploitation.

---

Exploitation is kept under control due to competition among entities providing similar products/services. Also as a consumer of a product/service I have the "choice" of going for a product or service and hence controlling the exploitation.

However if I am addicted to certain brands, certain level of quality, certain level of comfort etc then I give an opportunity for product/service providers. And unless I make an effort to be Buddha, I continue to be dictated by my desires, giving an opportunity for exploitation.

What are your views?