Sunday, November 22, 2009

Pizza Parlors

There are 2 well established pizza parlors on the west side of town. They compete with each other through coupons and promotionals like free drinks. They each have loyal customers but most people these days check for deals.

There is a new pizza parlor that just opened about 2 blocks from one and 3 blocks from the other established businesses. You might think same old same old but not with this one.

The new proprietor is in the business of getting pizzas onto everyone's plate. Profit is not important. He wants people to pay for their meals but according to what they can afford. He wants to make the quality of pies that the other places do but his only goal is to provide pizzas.

What do you think will happen to the two original parlors? Will they compete and compete and come up with a lower priced pizza? They can't really compete with someone who provides meals at slashed prices without concern for profits.

I watched several senators interviewed this week on Fox News. The senators who are pushing this health insurance change were degrading the fat cat insurance companies and calling for change. With the government run health option, it will bring about necessary competition.

Will the original pizza parlors compete and survive? Doubtfully. It may be a long a painful death but they can not compete with someone who has no concern for the bottom line.

Please remember, insurance companies work with a less than 3% margin of profit. The government will spend and spend and spend with little regulation and no concern for OUR bottom line.

'til later

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