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From: Cynic on 17 May 2010 11:56 On Sat, 15 May 2010 19:21:34 +0100, "Justin Credible" <matt.finish(a)btopenworld.com> wrote: >But why are businesses so keen to shaft their existing customers? Surely in >a shrinking economy you concentrate on core base retention rather than >getting new business via loss-leading offers? It is far better to do *both*. No need to disturb the geese who are laying golden eggs until they express dissatisfaction. Then you immediately lower your price. Sure, you'll lose a few customers who you cannot persuade to stay on at the reduced price, but that is more than compensated by the vast number who are blissfully unaware that they are paying well over the odds, or who stay because it's too much bother to change and they can well afford to pay the inflated price. -- Cynic
From: Cynic on 17 May 2010 11:59 On Sun, 16 May 2010 00:39:24 +0100, MrBitsy <ray.keattch(a)infinity.com> wrote: >I have seen the reports that say Asda is cheapest, but they are >rubbish. If we shop in Tesco we spend around �110, Asda around �95 but >Aldi plus Tesco around �75 (we go to Tesco for those ingredients not >available in Aldi). Well with Asda's latyest promo scheme, you could get it all in Asda, and then claim back the money you would have saved on the products that were cheaper at Aldi. -- Cynic
From: johannes on 17 May 2010 12:41 Cynic wrote: > > On Sat, 15 May 2010 19:21:34 +0100, "Justin Credible" > <matt.finish(a)btopenworld.com> wrote: > > >But why are businesses so keen to shaft their existing customers? Surely in > >a shrinking economy you concentrate on core base retention rather than > >getting new business via loss-leading offers? > > It is far better to do *both*. No need to disturb the geese who are > laying golden eggs until they express dissatisfaction. Then you > immediately lower your price. > > Sure, you'll lose a few customers who you cannot persuade to stay on > at the reduced price, but that is more than compensated by the vast > number who are blissfully unaware that they are paying well over the > odds, or who stay because it's too much bother to change and they can > well afford to pay the inflated price. Well eh.. yes, people are busy, having no time for anything else than earning an income so that they can pay the inflated prices... It's a vicious circle. Why do people e.g. pay �5000 for an airline ticket when they can obtain the same result from a ticket for �500? Why do people buy a car for �50,000 when they can obtain the same result from a car costing �500?
From: Clive George on 17 May 2010 12:59 On 17/05/2010 17:41, johannes wrote: > Why do people e.g. pay �5000 for an airline ticket when they can obtain > the same result from a ticket for �500? It's not the same result though, is it? Sure, your body is moved the same distance, but the treatment of it on the way and hence the condition at the end is different. > Why do people buy a car for �50,000 when they can obtain the same result > from a car costing �500? Ditto, although image is a rather larger part. People also like the idea of reliability, and believe that money will buy that for them. Ultimately the answer is the same as "why do dogs lick their balls", ie "because they can".
From: Nick Finnigan on 17 May 2010 13:10
Cynic wrote: > On Sun, 16 May 2010 00:39:24 +0100, MrBitsy <ray.keattch(a)infinity.com> > wrote: > >> I have seen the reports that say Asda is cheapest, but they are >> rubbish. If we shop in Tesco we spend around �110, Asda around �95 but >> Aldi plus Tesco around �75 (we go to Tesco for those ingredients not >> available in Aldi). > > Well with Asda's latyest promo scheme, you could get it all in Asda, > and then claim back the money you would have saved on the products > that were cheaper at Aldi. No; read the small print. |