I was told that the low cost carriage company's strategy is to tap on ocean full of opportunities and getting lemonade out of lemon.
The trick is simple;most of the time most people are not thinking Out-of-BOX.Yes Every One Can Fly: Make sure you book early and get a cheap flight! Normally the statistic shows that the occupancy rate of any flight in any company at any one time will never be fully occupied.It was reported that the average occupancy rate is about 40 to 70 % only.
How do they think about filling up those empty seats?? That's where they will advertise cheap fare rate like : 0 fare,Rm 9.99 fare,Rm 146.68...and so on.The tickets fare would be dearer as the departure date is drawing near.
You must remember that the availability of such fares are limited and at the same time they have used the quantum on the unbooked seat base on the norm.Let say 30% unbooked seat available at any one time and this 30 % SEATS WILL BE Classified AS "fREE & cHEAP fARE".
For example: 1) 10% :- 5 % as RM 0 fare & another 5 % as Rm 1.00 fare; 2) Next 10% :- 5 % as RM 9.99 fare & next 5 % as RM 36.99 fare; And 3) The last 10 % :- 5 % as RM 168.88 & n the following 5 % as RM 368.88 fare.
For the rest of 70% seats will be sold as normal price, the price may be slightly cheaper than the other company. When you read through the Rules & Regulations of the cheap flight;It is clearly stated that any change of travelling time and date, there will be a surcharge imposed on you.
Mind you,the booking dates of the cheap travel fare like : 0 fare and 9.99 fare will be opened as early as 6 months ahead. Now you may have booked your ticket 6 months in advance and you may also bounce to make a last minute changes to the flight schedule due to certain unforeseen circumstances that cropped up in the middle of no where.Eventually you may cancelled you flight or make some changes to your flight schedule.
With those unforeseen things happening day in day out to many travellers using the cheap flight route; just imagine... Now, they will resale the ticket to someone on the waiting list at the airport - No more a cheap flight for the traveller cos the ticket is readily available ma!
There are a few ways ( as far as i can think of) how they make money from the low cost route:-
1) A surcharge is imposed on any changes to the flight; time and dates. 2) Resale tickets from cancellation of flight. 3) No free food, no outside food. 4) Selective landing venue to avoid expensive air port taxes and yet they impose a standard charges on you.( e.g Land in Macau instead of HK) 5) Do away with business class and create more occupancy.
As you can see when you logged on the web site to purchase a ticket. If the cheap fare is sold out and you would definitely think that the next set of schedule flight is still a cheap fare ...(cos everyone say so ma...) And the trouble is not many people will take the trouble to surf to other web site for an alternative buy or thinking that it is time consuming to do so.You may end up buying a not so cheap ticket.
Well, in business if you can get a 100.00% full occupancy rate on the flight or hotel rooms;then it would be a profitable venture and you are getting the lemonade! Even if you could break even at the end of the day, You still would not suffer losses anyway.Right? That's why in any business the key word is " VOLUME"
If you have the volume in business and definitely the demand is there. Just imagine if every household in China were to spend just RM 1.00 worth of product from your company...Wow! How many billions can you make out from them?? Per day?
I observed that the Chinese traders are more versatile then the Bumi traders ( No Offend huh) Say for example if you were to buy 10 pairs of sleeper at the cost of Rm 3.80 per pair.The Chinese trader will part at the price of Rm 3.65 per pair and the condition is to buy all the 10 pairs. whereas for the Bumi trader :-" Kalau kau beli 10 pasang ...harga selipor saya tetap rm 3.70 tak da kurang...dah kurang sepuloh sen...modal pun tak da o...." The Chinese trader is thinking of sales in bulk even they agreed to sell to you at Rm 3.65 per pair but you must buy all 10 pairs. Though the return is small but the sales is fast and in bulk.No Matter how small the business is;if anyone is buying in bulk then you ought to give a good discount so as to make the deal done in a win win situation.
There are many gimmicks to attack customers and end of the shopping period the customers are lured into buying extras from their initial budgets.When the housewives see a rm 00.10 cheaper in the milk powder;everyone will rush to get it...ended up buying more then they needed.This rush has created a volumes for the shopkeeper/hyper mart to create business.Sometimes when you are not careful they might even disposed those items that are near expiry date as a cheap sales!
If you do observe those electrical shops;once if they can make a few bucks from the targeted sales; they are happy with it. Now, if they keep holding on to their price then there would be less sales for them and they might lost once a same new product surfaced.Electrical products
obsolete faster then you can think and the shop keeper can only make a marginal sum that's why they seldom allow credit.
3 comments:
Low price ? My ass ! i try to book a return flight to phuket both to and flow at rm 29.99 each but the total fare come to rm320 .wait untill i set up my own low cost airline with me as captain and bangla as co-pilot and indon as flight engineer ,no need air-hostess lah since no food available onboard and it is going to be rm29.99 all the way with refurbished second hand plane from cambodia . all passenger are advise to purchase life insurance b4 boarding and pls enjoy your fright OOPs should be 'flight' Soorry
talking about bulk sales you notice that sometime hyper market dont mind selling one or two items at lost or below cost because they can cover back when you buy other things which might be at higher price surely most of us dont go there just to buy those offer items only but you might also end up buying things that you only need next month or next year
All the tricks used by the chinese businessman is uncovered by don yoo.
Mana boleh maca ini!customer will know all the hanky-panky.
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