Scotts Miracle-Gro*, the fertilizer manufacturer, reported record sales in FY 2006. And the company is convinced that the demand for fertilizer is price inelastic (rich suburbanites don't react to price changes).
"While it may be difficult to consider lawn-and-garden products a true consumer staple, the (sales) data suggests that consumers are unlikely to forgo purchasing our products, even in the face of macroeconomic pressures."
Hmmmm...maybe a green grass tax* is in order. But if demand is really inelastic, all that would do is raise tax revenues and not solve the run-off problem. Mayber that's not such a good idea.
*Scotts Miracle Gro is local to central Ohio. I have a few friends who work there (including a head of one of the national sales divisions). I hope they don't read this.
