Quality vs Quantity
Yesterday bought a christmas present for myself. It's a reissue Galvatron in anime correct colors. For those who do not know what it is, it's a transformer toy that was featured and produced about 15 years ago. Happy not just of having it but also having it at a cheap price. It's considered a christmas present by the toy shop because it's selling way below any other toy shop. This is one way which the shop want to show their appreciation for us regulars who have been faithfully purchasing from them through the good times and bad times. Other toy shops are selling at least 1.5 to 1.8 times the price which I bought.In this knowledge based economy, gone were the days of customer loyalty. Most of the people now only goes for whoever provides the cheapest. For example in Janurary, shop A sells toy X at the cheapest price. Alot of people will flood to them to buy the products and even try to be "best buddies" with them. However, their alliance will change when another shop suddenly dumps a particular sought after piece at rock bottom price. These people will just say to shop A," sorry, I'm not getting from you anymore coz I found a cheaper source." One can say that there's no agreement beforehand on the order but shop A gives the consumers the benefit of doubt. They allow pre-orders without having to pay up in advance any money. This can also let them gauge the demand and amount to bring in. When suddenly a big number of people cancels the pre-orders WHEN the products have arrived, shop A will be left with oversupply of that product. From that time onwards, shop A gradually filters out these people who are only price loyal and those who are regular customers who have been faithful. That's how this christmas present at this fantastic price came about. =)
When I was talking to the owner, he said that yesterday morning, "surprisingly" there were many phone calls that asked:" Hi, erm... I'm one of your regulars and I missed your preorder on galvatron. Can I get it at XX price?" Owner said:" The pre-order list was up for 3 and half months and don't you find it a bit funny that of all days, you call me on the day when the price is released? Well, giving you the benefit of doubt but also have to "appreciate" the people who had pre-ordered, I sell you at 1.5 times the price. Even at 1.5 times, the price is still the most competitive out in the market."
Do Singaporeans really like to complain so much that it's in their blood compared to other people in the world? No matter it's good or it's bad, also can find things to complain. lol.
When another shop dumps the particular piece at rock bottom price, IF shop A DO NOTHING, people will say," Not nice la, other shops selling at this price, how come you still keep at that price? So expensive compared to them"
However, when shop A counters the dumping piece with the same rock bottom price, there'll be people who say," Not good la, you sell so cheap now. Last time so expensive, I feel cheated"
I enjoy talking to the shop owner, let me realise the different kinds of people out there and it's not really easy to do sales. Besides good service provided, also have to have enough captial to "brave" through a price war if there is.
posted by tornado @ 6:26 PM
3 Comments:
hahaha...as of e posting b4 this, u already said that this is a dog eat dog world mah. Bascially for things like fmcg, ppl will go for transactional marketing instead of relationship marketing, due to cost factor. Since they have a range of suppliers to chose from and they r not bonded by any contract or so. So it b better for e shop to have some deposit for any pre-order stock.
Based on our current market u can c liao man, such as NTUC, can say that they actually monopoly some of e area. Cos most of e neighbouring provision shop has closed down liao. Then if u take note of e prices, they can have e same type of product but at different price at different location. Prices will b lower at area where they r facing competitors such as cold storage or shop & save.
If u have notice, NTUC has been rising its pruduct prices gradually bit by bit, so that consumer may not notice it. It usually rise by a few cents each time, so as time goes,
well, u know, more X, cost of living will go up and up, wont come down.
For example, e econ near compassvale LRT, e prices r actually 10-30cents more X then other place, mayb more, but ppl just buy it from them, Y? Cos thats e nearest shop available within that area. Monopoly.
Transport cost when times r gd, goes up, when times r bad, goes up too even when they r still making profits and not losing $. E govt will always support them and say that its AFFORDABLE. Not that i m against it, cos every company want to make profit, but as a public transport provider, it must spare a thought for those low income earner also. Well, i know of a neighbour who earns only $1.4k a mth and he have to feed 2 kids in sec sch, wife working as part-time, also dont earn much. HDB loan to pay, utilites bills, transport, etc...How to survive? save this and that just to get through e days.
bro, what is this special 1.8 times less price? i forgot to ask you just now after reading the post. can sms me if you see my comment. me in camp. :)
cheers.
wu, read properly. I wrote "at least 1.5 to 1.8 times". not 1.5 to 1.8 times less. See the difference? Hope you understand now. =)
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