Return to transfer pricing

If used properly, Illinibucks would be convenient for students attending this university. For example, if these Illinibucks were pre-specified and added to a students i-card, certain inconveniences such as having to withdraw or add money to one’s account would be avoided. If administered as such, Illinibucks would also make it easier for students to keep track of their budgets, especially if these Illinibucks were refreshed, lets say, every week. Having a specified budget of Illinibucks for each week would prevent students from going over the limit while allowing left over Illinibucks to accumulate for future purposes.

            The university and parents would also be more at peace if there existed a limit to what Illinibucks could acquire. For example, Illinibucks could be made to only purchase school related materials or common necessities, meaning parents won’t have the worry that their kids are buying alcohol or other narcotics with their hard earned money.

            Now, to be more specific, items such as school materials, food, and other common necessities would be good items that could be purchased by Illinibucks, which would make it similar to the café credit system implemented by university housing. Unlike the café credit system, Illinibucks could be distributed to all university students, not just those who live in university housing, but for that to happen, more units that accept Illinibucks would have to become available across campus.  With such system, Illinibucks would make it convenient for students to acquire certain goods, such as a meal, without having to travel too much out of their way. For example, lets say a student hasn’t had a thing to eat all day but the restaurants at the union accept Illinibucks, instead of going out of his way to get food at green street, this student could simply buy a meal with his Illinibucks at the union. Though the variety and quality might not be as good, it is convenient.

            Illinibucks could also be used to “cut the line” as mentioned. For example, some students get priority in registering for classes over others, Illinibucks could be used to give those students who don’t have priority the ability to register at a sooner date. Some classes are also locked for certain majors till a given date; Illinibucks could be used to give students access to this otherwise restricted classes. Though the idea of using Illinibucks to “cut line” seems convenient to the person using them, it might not be convenient for the system overall. For example, many of the restrictions on certain classes are there so that students within that major, or incoming freshman can pick them up. Without those restrictions, certain students might pick up classes just as Gen Eds while other students could taken them to go towards their major. Also, in the name of equity, it wouldn’t be fair for students who get priority for classes based their academics to get “cut” by another student who used these Illinibucks to cut line.

            Personally, I would spend my Illini bucks on food. You need food everyday and it would be a great to have access to healthy food like the ones offered by university housing rather than eating pizza every other day. Having access to food via Illinibucks would also be a huge time saver since I would avoid cooking or having to travel. I would also spend my Illinibucks on common necessities such as toilet paper and such when needed, since it would save time from having to travel to Wal-Mart or Walgreens.

            If the prices were administered to high, then the demand for goods acquirable by Illinibucks would go down. Students would then look for substitutes for these goods and the overall profitability of the system would go down. An example such as this exists on this university. 57 north for example, is a small convenience store located within one of the units of university housing that accepts café credits but it overcharges heavily for these products. Energy drinks tend to be about one dollar (one credit equals one dollar) more expensive then at Walgreens, and mediocre burgers go to about 5 credits apiece, something you can get for a dollar at McDonalds. If 57 north were to set their prices to the market prices their profitability would most likely go up.

            On the other hand, another scenario that could happen but is less likely is that the prices are set to low. In this case, the supplier of this goods would supply less of such goods, the demand would be to high and not every consumer would get what he desires despite having enough Illinibucks. In either case, profitability is lost if prices are set too high or too low.