The following appeared in the annual report of a chain of stores that sell supplies for do-it-yourself home improvements.

“Current reports indicate that sales of new homes nationwide declined by 9 percent during the past year, while sales of existing homes increased by 16 percent. Thus we can expect that the percentage of homeowners who will be making repairs or improvements to their homes will also increase. In addition, people who buy existing homes will have more money left over after the purchase to spend on home improvements. Finally, people who buy existing homes are more likely to make improvements themselves, as opposed to paying someone else. These factors combined indicate we can expect an increasing demand for products in all our stores nationwide, thus increasing our profits in the coming year.”

The above article appeared in the annual report of a chain of stores that sell supplies for do-it-yourself home improvements. The arguer is expecting an increase in demand for products for do-it-yourself home improvements in all stores nationwide and thus it would increase the profits in the coming years. The arguer gives various reasons to support his stand. The first argument by the arguer is the current report which indicates that sales of new homes declined whereas of existing homes increased and therefore the homeowners who will be making repairs or improvements to their homes will also increase. The second argument presented by the arguer is that the people who buy existing homes will have more money left to spend on home improvements. The final argument of the arguer is that people who buy existing homes are more likely to make improvements themselves, as opposed to paying someone else. The arguments presented by the arguer are not convincing.

The first argument presented by the arguer is the report which indicates decline in sale of new homes and increase in sale of existing homes and thus people would buy more do-it-yourself home improvements. The arguer fails to mention the reason for such a sharp decline in the new homes sales. It is possible that the economy of the country was facing a depression which resulted in decrease in income of the people and which eventually resulted in people opting for second hand houses. The arguer fails to bring into notice the fact that if people would have to improve their bought home then why would not they prefer a well furnished home only which needs no improvements?

The second argument presented by the arguer is that people buying existing homes would have more money left and that they can use that money for improvements of the house. This is entirely a hypothetical assumption as if in first place a person is opting for a secondhand house that clearly shows his monetary constrain. Why would he invest his saved money again on the improvement of that house; he would rather invest in some more appropriate area.

The final argument by the arguer is that people who buy existing homes are more likely to make improvements themselves and hence they would buy do-it-yourself home improvements. Even if the owner of the house decides for home improvements then why would he be only considering do-it-yourself home improvements? The arguer has failed to mention if this is the only store or there are others also. If it is the only one then it might be very costly and people would be hesitant to go for this store and if not then people can go in for other options as well.

The arguer assumes the increase in the profits of the do-it-yourself home improvements but the same trend of people buying second hand houses will not continue and the arguer is not sure that people would opt for this brand of stores only.

The arguments presented by the arguer are baseless and hypothetical. Therefore, it is not sure whether the company would have an increase in profits due to people opting for secondhand homes.