Wednesday, July 11, 2007

Can I buy lesser quantity?

Pay more can buy more, but can we pay less buy less?

There is some kind of lower bound, because raw-material costs is not the main factor. Long time ago ice-kachang can be sold at less than a dollar. The cost of water/ice, red beans and etc didn't change much. However, now it can cost $1.50 to $2.50, for a bowl of ice-kachang. Although the quantity is more. Same applies for many other things such as chicken rice, wantan noodle, and etc.

I think the reason was that the rental, labour and other non-material costs increases tremendously. So a way to increase profit is by increasing revenue. To increase sales would be harder compared to increase price. You can't ask a person to buy two bowl of ice-kachang at 1$ each, but you can put 2 original bowls quantity of of ice-kachang into a bowl and sell to one person at $2.50.

Combine this with a traditionally good habit of not wasting food, we gain weight :(

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