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Price & Quality

Price & Quality

Dear Friends,

We are well aware that certain discussions arising queries about the relative price level of Dhara olive oil is being carried on for a while in the olive oil community and market. We anticipate the possibility that you may also have similar queries related with this matter.Since we believe that this matter is likely to lead to interesting and concept creating discussions, we would like to share the following with you. We presume that this text, systematically discussing the already existing or probable questions on our price level, will be illuminating for all of us. We would be glad if you don’t deprive us from your opinions and critics, either positive or negative.

Sincere regards,

 

DHARA

ON CHEAPNESS AND EXPENSIVENESS CONCEPTS

A. Propositions on Price Levels and Causality Relations

 1. Value concept is the basic constituent of economy. So much so that the way the value concept is defined has been the pencil, drawing the most distinct lines of economic and political partiality in macro, life styles and philosophies in micro levels; for sure, it will continue to demonstrate the drawings and cartoons of this pencil in the predictable future.

 2. Having survived innumerous discussions, the value concept bears various and different definitions as a natural consequence of these. However, these discussions did not prevent development of common definitions for certain sub-elements and definition of the relations between sub-elements.

 3. Price is a function of value.

 4. Price and market price are not identical concepts but, though not very clear, there is a definite directly proportional relation between price and market price. 1 / 6Price & Quality

 5. There is a directly proportional strong relation between quality and value.

 6. Quality can be generated by human labor requiring high level of knowledge and experience, which naturally implies its own quality.

 7. Quality concept implies more labor per unit, higher production costs due to higher quality unit labor, acceptation in advance the relatively high production percentage discarded due to adopting relatively high quality standards as indispensable criteria in production, and relatively high levels of educational, scientific and technological investments. All these factors increase and even multifold the basic cost components.

 8. In social production processes where quality is not cultured yet, numerous elements other than the above also play roles in increasing the cost of quality production.

 9. The last three items above should be used in compound form with all its possible sub-titles to comprehend the relation between quality and price arising from the reflection of the cost-price relationship.

 10. In case quality is rarely found –the existing situation in the majority of observations in our day can be classified under this title- it should be taken into consideration that it will affect the price much more strongly.

 

B. Elements of Quality Concept at Dhara and Properties of the Quality Level of Dhara Olive Oil

 1. Dhara olive oil is produced organically with antique press method and boutique processes.

 2. Organic production is a must for humanistic products.

 3. Antique press method is developed by compiling at least three thousand years old Phoenician, Carthaginian, Ionian and Roman production methods comparatively and filtering these through a critical filter based on today’s knowledge and experience.

 4. Boutique olive oil production processes, on the other hand, is accepted as the name of an approach used for obtaining highest quality and delicious olive oils from olives that have not been degenerated by current or fossil human actions, with methods and in environments where hygiene is provided without the inclusion of chemicals creating health risks; in this type of production, the main purpose is not volume efficiency and profit maximization, but rather production in optimum volumes and quality maximization.

 5. Antique press method used in Dhara does not define the phase of obtaining olive oil from olives in a single facility only. A compound and interactive processes system, a dialectic whole of processes in which the wholeness is provided by examining numerous sub-steps from soil to the final consumer one by one, questioning, completely redefining where necessary and only after that including in the process is named as antique press method. In antique press method, it is the synergic effect of the compound system on quality that makes the biggest difference. 2 / 6Price & Quality

 6. At Dhara perfection is not defined as a fixed point target in a form demolished by metaphysic stability and fragmentation; it is the direct quality of a whole of dialectic processes in which the charm and naturalness of its movement and continuity of its change are comprehended.

 7. As a natural requirement of this approach, the development process of antique press method procedures is not a network of morbid steps left to rotting in its cell where it is locked up with fallacy and illusion of completion. A living system of methods open to continuous questioning and development, directly connected to each other, principled and consistent is under consideration. Antique press method is criticized, observed again and questioned in an interdisciplinary manner in the light of most qualified and update information available.

 8. The total volume of olive oil produced in the world in light of similar guidelines and with similar qualifications and quality standards as Dhara olive oil should not be expected to reach, even with the most optimistic approach, to the level of best first one ten thousandth level in terms of tonnage, at least in the short and medium run. Achieving this target even in the long run would be a very significant and brilliant victory on behalf of humanity.

 9. In Turkey, olive oil production having the aforesaid quality levels is unfortunately in much less quantities and could be observed much rarely.

 10. A great percentage of this kind of olive oils produced in very small quantities with the said high quality levels both in the world and in Turkey is not available in the market. The prices of these are not measured in money; because these olive oils are consumed directly by their producers and their families or by a very narrow society having direct relationship with the producers; therefore, they are also defined as prestigious products.

 

C. On the Price Level of Dhara Olive Oil

 1. Dhara olive oil is among the best quality and consequently the rarest olive oils produced in the world, because;

 - Dhara olive oil is produced organically with antique press method and boutique processes.

 - Dhara olive oil is produced with a kind of international experimental archeology approach and with an interdisciplinary point of view.

 - Dhara olive oil is produced for the own consumption of its producers and their own children.

 - In spite of its prestigious product properties, Dhara olive oil has the advantage of being available in the market.

 - Nominal price level of Dhara olive oil is among the highest priced domestic production olive oils available in the Turkish market; however, this does not apply for the world market and the imported olive oils available in the Turkish market.

 - When organic production is considered, the following situations are faced in the whole 3 / 6Price & Quality world:

 - A certain volume of production is organic and certificated. Naturally, some of these products are priced considerably higher than the similar products that are not organic.

Certificated products not having significantly higher prices with respect to similar products that are not organic constitute an unfair situation against the producer.

 - Regardless of their price level, majority of organic and certificated products are produced with unbelievably low qualitative properties.

 - So much so that final consumers in the market have begun to establish a relationship between low quality levels and organic production; moreover, the existence of an indirectly proportional relation between quality level and organic production –although it is an entirely wrong assumption- has almost become a kind of presumption.

 - In Turkey, a certain portion of the olive oils which are in the same price level with Dhara olive oil obviously are not even organic; another portion of these are defined as organic by their producers but this proposition seems highly doubtful; still another portion have considerably low quality levels although they are organic olive oils.

 - The objective reason of this low quality observed in organic olive oils is nonuse of antique press method and boutique production approach; the teleological reason of this is the paradigm in production volume rather than quality, and naturally price and producer profit oriented production policies and methods, as well as middlemen profit oriented packaging and distribution policies and methods. This paradigm can also be used to explain the evolution and imposition purpose of the causal relation between low quality and organic production observed in final consumers as mentioned above.

 - At this point it is clear that an attempt of comparison based only on the nominal prices cluster is misleading in terms of using cheapness or expensiveness attributes and this fallacy can be deliberately used against the final consumer. In order to avoid these judgments that may be misleading accidentally or deliberately, the criteria to be employed in comparison should be selected as the quality levels of the products and the prices paid per unit quality.

 - In quality level ranking Dhara olive oil is among the top ranks. When analyzed in terms of the price paid for unit quality however, it will be seen that Dhara olive oil is considerably cheaper.

 - If it is taken into consideration that it is an olive oil keeping the bar high in quality level ranking and positioned among the best in the world, can be produced in very small quantities due to production principles and quality requirements and thus takes place in the prestigious products cluster, it will be observed that the relative, comparative price level of Dhara olive oil will be positioned at considerably lower ranks.

 - Following such comparative analysis, the high frequency question can be posed again:

Which olive oil is more advantageous for the final consumer with all its variables and in all terms?

 - It is true! Dhara olive oil is within the top ranks in nominal price level order. This situation may be deemed as a problem to a certain extent and only with respect to purchasing power.However, the final consumer profile of Dhara olive oil, defined to be valid for the current period together with its footnote and as a consequence of the deterministic effect of production conditions, involve individual or corporative final consumers giving top priority to quality and capable of realizing this decision in every respect. In short, there is no contradiction. On the  4 / 6Price & Quality other hand, expanding the clearly defined final consumer profile regularly and in the first possible opportunity as the production and consumption volumes of Dhara olive oil increase and thus unit costs are decreased is within the scope of targets.

 - Moreover, it is physically impossible, at least in the short and long run, to offer Dhara olive oil and other olive oils having at least similar qualifications to everybody and to all pockets, because the realization of this depends on the precondition of experiencing serious changes in human civilization; therefore, such a proposition or expectation may be consistent only if it is set forth as a long run target.

 - Analysis of current physical conditions is sufficient to demonstrate that the nominal price level of Dhara olive oil is normal. Under these conditions and as long as they do not change, a Dhara olive oil with relatively low nominal price should either be deemed as a definite sign of unfair behavior to our final consumer friends or as a proof of unfair behavior of our friends to Dhara olive oil. In case of the existence of any one of these situations, fairness principle will be breached; in case the fairness principle is breached, is it possible to talk about friendship in such a relation?

 - The qualities level of Dhara olive oil and the production guidelines and processes displaying this level are always open for testing.

 - The pricing policy applied at Dhara is transparent and clear.

 - The pricing policy of Dhara is defined as determining the most reasonable price allowing the realization as fair as possible of production relations in which it exists, depending directly on the quality of the product it offers and its unit cost.

 - If we shall not define our relations with final consumers as a friendship based on confidence, if we shall not offer them consultancy, a problem solving information, opinion, approach and whole of actions and if they shall not expect more than a product from us and if they assume the justness of their share of costs of this consultancy service and quality surplus certainly reflected on the price as a matter of discussion while this expectation is real, lack of a concept beyond confidence, friendship or fairness exists; there is no wish for mutual existence. Why then, we are communicating to understand each other when we could drop the subject with a single sentence? Why are we trying to make awfully expensive anomalies for our daily

life style like information and emotion exchange exist? What is that single sentence? Free market economy! If there is no solid friendship, what is left behind?

 

CONCLUSION AND SUGGESTIONS

 1. Dhara apologizes for not being able yet to cut its costs and consequently its nominal price to lower levels through larger production volumes and economies of scale, from the friends who  5 / 6Price & Quality think the nominal price of Dhara olive oil is fair and normal in respect to the value of services and product provided, but stating that they have problems in affording the said nominal price level in respect to their purchasing power. This apology does not originate from being the source of the problem or benefiting from the consequences of the problem; the problem is systematic. The reason of apology is not being able yet to overcome the problem by using another way or method.

 2. Dhara is providing, beyond a mere olive oil, a universal consultancy service of extraordinary quality to friends who wish to be questioning, fastidious and decision maker in respect to quality.

 3. For our friends who endeavor for not making the mistake of sacrificing food and quality of life which incurs excessively high costs, who continuously support this resolved attitude with their actions and behaviors, and who know Dhara, it is impossible to esteem Dhara olive oil as expensive.

 4. In case our friends who state that they aim quality and it is obvious that they have the power to support this decision question the fairness of the nominal price level of Dhara olive oil, there are three possible situations. Our consumer or potential consumer friend is not really aiming quality, or, although aiming quality does not wish to assume the cost of quality, or does not really know Dhara olive oil yet. If the first situation is the case, solution is quite simple; they

 

are recommended not to use Dhara olive oil. If the second situation is the case, the existence of a paradox will be proved and unfortunately, the existence of paradoxes precludes the suggestion of a brief and simple solution. In case of the third situation, our consumer or potential consumer friend is recommended to explore and question Dhara by using the primary and secondary information sources as s/he wishes and in any amount s/he deems necessary; s/he should not doubt that we would be most pleasured if s/he would involve us directly in the exploration and questioning process. Moreover, we are glad to announce here that they can personally watch the birth and growth of Dhara olive oil if they wish.