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3/26/2008

High business cost is good

There was a time when there were calls for reducing business cost to stay competitive and relevant I think that was an old broken record and had been thrown away. Today, high cost means high quality, value for money. So high cost is good. High rental, high wages, high communication and transportation cost, high food and services costs, high education and medical cost etc. This is what a great first world city is all about. The higher we charge, the more people will flock here. Why are the hotels worrying that their rates are getting too high and tourists may not be able to afford them? Would medical tourists also go somewhere? Would the high spending shopping tourists go as well? Foreign students, foreign workers, businesses, would they stay and keep coming? What happens when one day we work up and all the factories are gone, hotels empty, hospital beds under utilised, shops without tourists, hawkers unable to pay for food court rentals? Never. It will not happen to us.

2 comments:

Matilah_Singapura said...

There is only one price: the market price.

Can you make a business work given the market prices you have to pay and sell your services/products at?

Ah... that's the fundamental question.

The notion of 'high' cost or 'low' cost is completely relative and subjective. If your numabers are working, your business will survive.

redbean said...

true. just keep upping the price for as long as the market can take.

when is the next pay rise?