13 March 2006
Was browsing thru the Tesco Website when i saw this "Promotion" on FRESH MARKET. Nowadays Hypermarkets employs very aggresive and hostile kinda marketing stratergies compares to the traditional and peaceful era of Mini Market.
Cheap but good anot ? Thats the question! Skali get all the inferior goods from China lol!
I got a friend who is in building maintenance, Cleaning la! but building maintenance sounds more sos-pissed-tikated mah lol!
Anyway to make thing simpler just read the below conversation between me and him. Lets call him David for this conversation sake.
Me : Oi! how you maintain that building one? blardee dirty and looks like gonna collaps anytime soon.
David : Oi! not my fault ok ?
Me : What not your fault ? you got the maintenance contract for that building rite ?
David : Ya la! you think I m God ka ? Last year one month contract price is RM20k, then this year RM 12k!
Me : So?
David : Fark la! Everything also increased price! Salary also I have to increase every year! Machineries also increased! Chemicals for cleaning also increased! Levy also increased! HOW COME MY CONTRACT VALUE DECREASED??!!!
Me : Then u got tell them like this anot ?
David : Got la! but he told me if i dunwan do got other people willing to do for RM12k! KANNEH!!! I die die also must take this job la! If not who is going to pay my workers salary ?
Me : Thats why you are doing a crappy job la ?
David : not my fault, I told them for 12k a month this is the type of quality they will be getting and they said they dont mind, so not my fault what ? 8k can do alot more you know ? I kena cut half of my staffs just because they reduced the contract price.
Me : No wonder so many of our buildings turned out like shit ledi la!! diuu!!!
There you go ... not everything in Malaysia can increase price one, sometime bcoz of "undiclosable reason" you kena reduce price! MCH!!!
So, now there is this price war going on between this few "BIG" hypermarkets, at a glance you might think that consumers is actually benefiting from all these price reduction but look at the long term effects. These "BIG" hypermarkets will evetually need to source for cheaper and cheaper products so they could kick their competitor's ass!
Cheaper products means cheaper manufacturing cost, which also leads to cheaper raw materials used, manufacturing process or no quality controls. The manufacturer will have to cut something somewhere in order to reduce the cost you know ??? So in the end we are getting crappy products.
By the end of the day Hypermarkets definitely will have to make a profit or else the CEO will kena fire in the next AGM, the manufacturer also have to continue to make money or else they will close down right ? so if everyone is making money who is the losing party here? Someone gotta to lose in order for someone to win right anot ?
Now tell me, are we really gaining anything from price war?
Posted by Wingz at 2:19 am