Damn it, how can they do this?

Singapore’s MobileOne cuts prices of some plans SINGAPORE: MobileOne Ltd, Singapore’s smallest wireless operator, will cut prices by as much as 35% for users with multiple connections to retain customers before a rule change lets people keep their number while switching carriers. Users with at least three mobile-phone or high-speed Internet subscriptions would get discounts of 25% to 35% from today, MobileOne said in a statement to the Singapore Exchange yesterday. Phone operators in the city-state, including Singapore Telecommunications Ltd and StarHub Ltd, have started new services and promotions to attract and retain customers ahead of increased rivalry when mobile number portability begins by June.... The above is posted in the Star. How could they do it with increasing rentals and labour costs? And they are improving on their services as well. Are they trying to mock the system? Low price is possible! Low price also means better services!

1 comment:

Matilah_Singapura said...

MArket prices change over time. It is good business sense to 'charge what the market will bear', but this 'market price' is also, unbeknown to may people, even economists the cheapest price possible at a particular time (without business going broke).

When you have fierce and rivalrous competition, prices tend to fall because producers are fighting for market share. Techological advances, running a tight financial ship, strategic plannng, and reducing operating expenses - all this can be done to overcome rising labour costs etc.

Also, when fighting for market share, margins tend to be trimmed. You have to give up something for something. Dropping margins means more "value" to the potential customer.