Wednesday, March 29, 2006
Poor Business Part III.
As I promised earlier. This is the third series of poor business.
The gas price is go up and down. Malaysia government had increased all gas price another 30 sen and shaked all communities and businessmen. The worst hit would the poor community which are hardly made end meets. With the gas price increasing 30 sen, some restaurant also increased their food or drink by another 10 to 30% depends on the location.
Did the gas price increase have such huge impact to business? The answer is yes and no. Yes, the businessmen see their profit margin eaten up. To increase their profit margin, they had increased the selling price. No, those gas increase is only minimum 30 sen. Does it mean the business have to increase another 10 to 30% of more? I do not think so. If the transportation companies can absorb the gas price increase, why cant the business do it as well?
Instead of charge more to get higher profit margin, they should consider produce their products at minimum cost. Try to cut any unnecessary items such move to lower manufacturing location, use more robotic equipments instead of labor works.
In short, poor business may be just excuses to charge customers. At the end, the customers are always the loser....
The gas price is go up and down. Malaysia government had increased all gas price another 30 sen and shaked all communities and businessmen. The worst hit would the poor community which are hardly made end meets. With the gas price increasing 30 sen, some restaurant also increased their food or drink by another 10 to 30% depends on the location.
Did the gas price increase have such huge impact to business? The answer is yes and no. Yes, the businessmen see their profit margin eaten up. To increase their profit margin, they had increased the selling price. No, those gas increase is only minimum 30 sen. Does it mean the business have to increase another 10 to 30% of more? I do not think so. If the transportation companies can absorb the gas price increase, why cant the business do it as well?
Instead of charge more to get higher profit margin, they should consider produce their products at minimum cost. Try to cut any unnecessary items such move to lower manufacturing location, use more robotic equipments instead of labor works.
In short, poor business may be just excuses to charge customers. At the end, the customers are always the loser....
