But why is toilet paper selling out?
Strange things are happening in the world right now, in this time of Corona.
Sure, some of our loo paper comes from countries like China and India, and those imports are likely to experience a delay while we wait for these regions to get going again, causing a supply shortage. But this is also true of a number of other products that haven’t seen such a run, yet.
(p.s. If you’re reading this in most European countries or the USA it’s mostly made locally, so really there is no need to panic!)
Our toilet paper bulk buying behaviour right now also has something to do with the viral nature of panic. Fear is absolutely contagious.
Meet FOMO’s cousin, POMO (panic of missing out). After all, it’s human nature to look around at how others are behaving, and try figure out if we’re doing this pandemic right. We are social creatures after all.
Plus, all that two-ply takes up a lot of space on the shelves, so when it sells out in half a second, it’s hard for other shoppers not to notice it. Compared to when that small sliver of thermometer-aisle space sells out.
We also have something called ‘zero risk bias’ to contend with.
It turns out that we’ll pay quite a lot to eliminate one perceived risk completely. Despite the fact that it may not have any significant impact on bigger-picture risks at hand. It gives us less to worry about. And that’s useful in a time of maximum worry. If we can just win one small victory, or make one thing a certainty, we feel better. That’s behavioural economics for you.
And of course we tell ourselves that if it turns out there’s no shortage, we’ll use up our bulk stock of bog roll eventually anyway. (Maybe we should come up with a course on what to do with all that extra loo paper?)
Problem is, panic buying every roll in sight depletes the stock for everyone else out there, who just needs a roll or two, too. ( some clever sod has even created a website to help you know how much loo roll you really need - howmuchtoiletpaper.com)
So, what’s the opportunity here?
Other than quickly starting your own loo roll manufacturing company, selling your stock on the dark web, or trying to buy or sell a bidet on the second hand market?
This Australian newspaper, NT News, printed a blank, eight-page insert, that can be cut/torn up and used as toilet paper.
I shit you not.
Opportunity always abounds, particularly when chaos reigns.
p.s. PLEASE stop panic buying loo roll, we recently saw a multi-pack for sale at £50 on ebay!
If you’re interested in finding out more about human biases then you might enjoy our Behavioural Economics course featuring the enigmatic and brilliantly intelligent Rory Sutherland.
