A business owner has a problem.

[KATWYN]

The question, and the responses, seem to demonstrate a profound lack of understanding of how to run a business in a capitalist market based economy.


In simple terms: The shopkeepers job is to screw the customer for the maximum he can get. .

Gosh, hopefully no potential consumer knows which business you own Ixion, I certainly wouldn't shop in a business that carried the "screwing your customer for the maximum" policy .

[Steam]

I certainly wouldn't shop in a business that carried the "screwing your customer for the maximum" policy .

You do deal with those businesses already Katwyn; Every supermarket in NZ, Telecom, Telstra, every power company, petrol station, etc, the list goes on. Those places just attempt to put a nice face on it. If they are decreasing prices it's to increase their market share. That's all.

[KATWYN]

Those places just attempt to put a nice face on it. If they are decreasing prices it's to increase their market share. That's all.

At least they put a "nice face" on it to give a good feeling to the consumer, rather than create the opposite of a good feeling "we are screwing you Ms/Mrs/Mr consumer" (i.e., Empower giving a 10% discount if you pay the account by the 20th as opposed to Telecom slapping interest on if you don't pay by a certain date etc) despite what their agenda is, its a much nicer philosophy/policy to have and get across to potential customers...and good business sense.

Reward rather than punish. (an attitude of "screwing the customer" I would put in the punishment catagory)

In the end all those companies mentioned still have competition....

[BAD DAD]

[Reward rather than punish. ....This I agree with. If you are busy at all in the present economy then you are probably doing quite a few things right already.Loyalty should always be rewarded. Lost customers can take years to win back if ever.

[Jantar]

(i.e., Empower giving a 10% discount if you pay the account by the 20th as opposed to Telecom slapping interest on if you don't pay by a certain date etc) ....

No Katewyn, this is exactly the same thing. Empower (and all other power companies) budget on the fact that 90% or more customers will pay by the due date. Its actually an 11% penalty for not paying on time. They just call it a discount to make it sound better.

[KATWYN]

No Katewyn, this is exactly the same thing. Empower (and all other power companies) budget on the fact that 90% or more customers will pay by the due date. Its actually an 11% penalty for not paying on time. They just call it a discount to make it sound better.

.....like I agreed with Steam- its a "nice face" - a nicer way of presenting something to the public. A thinly disguised veil (by way of what looks like a discount) ....its a heck of a lot better to look like the nice person to the public as opposed to the hard harsh approach. Either way the nice way gets good results- good business practice.Anyway, this is going off topic a bit so thats all i'm saying

[Jantar]

.....like I agreed with Steam- its a "nice face" - a nicer way of presenting something to the public. A thinly disguised veil (by way of what looks like a discount) ....its a heck of a lot better to look like the nice person to the public as opposed to the hard harsh approach. Either way the nice way gets good results- good business practice.Anyway, this is going off topic a bit so thats all i'm saying

Not really off topic at all. Personally I prefer the telescum approach, at least its honest, and I'd reather deal with a company that's honest to one that lies. I might add that I changed power companies because the one that is encumbent in our area lied to me everytime I asked about anything.

That is one of the reasons that the boat business at the start of this thread would lose customers. By putting up prices to the customers during busy periods thay are effectively lying about the true price.

[KATWYN]

Not really off topic at all. Personally I prefer the telescum approach, at least its honest, and I'd reather deal with a company that's honest to one that lies. I might add that I changed power companies because the one that is encumbent in our area lied to me everytime I asked about anything.

That is one of the reasons that the boat business at the start of this thread would lose customers. By putting up prices to the customers during busy periods thay are effectively lying about the true price.

I don't agree with any of it either (i.e., lying)....my observations are from a business perspective only of what appears to work.... and what probably doesn't work.

My own personal non business opinion is another take on it altogether its all BS

My comments stemmed from Ixions comment about "screwing the customer to maximise profits" my comments were that from a business perspective it may not be A good attitude to have toward your customers...thats all

[ajturbo]

supply = demand...simple

[Ixion]

Gosh, hopefully no potential consumer knows which business you own Ixion, I certainly wouldn't shop in a business that carried the "screwing your customer for the maximum" policy .

Every business which you patronise is already doing exactly that. If they screwed you any more you would go to the competition. So either they are selling to you at less than you are willing to pay, or they are "screwing you to the maximum". Shopkeepers job is to raise the price for an given customer to just exactly that point immediatley before the customer goes to another supplier.

Of course, it is a societal model that I profoundly disagree with. But such as it is , it is what we have. Businesses are not philanthropic societies, disposing of goods at prices less than the market is willing to pay.

Mr Finn will perhaps explain it better than I do, he actually believes in it.

[KATWYN]

Every business which you patronise is already doing exactly that. If they screwed you any more you would go to the competition. So either they are selling to you at less than you are willing to pay, or they are "screwing you to the maximum". Shopkeepers job is to raise the price for an given customer to just exactly that point immediatley before the customer goes to another supplier.

I think I see see what you are saying Ixion. You were coming from the business persepective of how things actually are already, regardless of if you personally agree or disagree??

*Btw, my comment re shopping in your business was lighthearted hense my lil *

[Ixion]

Well, I am a Communist. so i think that the price of goods should be set by the government, based on their social utility - ie basic foods, super cheap. Luxuries, uber expensive. So bread is maybe 20 cents a loaf. Ipods, $2000. People need bread. They don't need Ipods.

But that's a TOTALLY different societal model. What we've got , is mercantile-capitalist.And for that to work at all, everyone (except workers) must maximise his own advantage.

[Swoop]

It's interesting to see that most responses are of the opinion that putting prices up would be bad for patronage and that people would go elsewhere.
What would happen if the other boatshops did the same thing?

[Ixion]

That's called an oligopoly. And come the revolution you get put in front of a brick wall.

[Jantar]

What would happen if the other boatshops did the same thing?

That is what is known as a cartel, and if you want the commerce commission to pounce then go ahead. There have already been a number of high profile prosecutions in NZ and a large number of smaller ones that don't really make the news.

However the penalties are often large enough to put a small business owner out of business.