Friday 3 January 2014

Let's Not Be A Fool

I read a Lot's about how TURUN has success in jolting the government to reconsider the price increasing in every areas of our life.

But I doubt it will happen soon. No, not because government won't take action but in about all economy areas in our country, it's in the hand of a few selected people. Yes FEW SELECTED PEOPLE. (I'm using the capital letter to shout it to you all).

This elites is the one who control the price tag. They will using almost every reasons possible even if their company can sponge off the increase because more money in their pocket.

They planning and enforcing all the cost reducing activities in their factory like Lean 6 Sigma, Autonomous, Kaizen theory, 5S, Cost Saving and much more, and then said that with the increasing of the every drop of the dust will increase the price tag of their product.

 OHHH PLEASE. 

That why I don't like when people mourning every times government increasing somethings the price tag for each goods will increasing. Unless Government own every factory in Malaysia, then we cannot simply said  the government can control everything.

The nature of business is to maximise the return with the minimum expenses. That means the factory need to search for the lowest raw materials and services while selling at the maximum prices. A simple fact we need to remembers.

Now, can our government simply said to this peoples that you need to lower your price and you think they can do it without giving the reasons or increasing of raw material prices everywhere in the global. If they managed to secured the lowest price ever do you think they will inform the government?

They will quote the highest raw material price ever to government as a reasons to increase the prices, maybe from Europe or America which of course the second choice's of their supplier list,  while actual facts is, majority of their sourcing raw material comes from China or Vietnam.

That how biz was conducted. They will never reveal their source chided as biz important information which cannot be sharing with other for afraid that the competitor will using this information for their benefit.

They then demand government to reduce the import tax or levy or whatever cost related and get much cheaper raw material.

Look at what have involved above. The biz actually complicated and a few can play it's games. If you're not careful you will get con in the games of it. At the end you pay the highest price and blaming others while they actual culprit getting away.

How to reduce the price woi? Someone will asked. Well by exercising your power as a customer. Choose the lowest price items with the same quality available and the price of the branded will get lower too.

What all the company who traded the same items in Malaysia have in common is they are fighting for the same base customer. If you and everybody else not choosing their brand and instead choose their competitor brands because it lower in prices, they will lower their prices too.

Or they will loose their customer. If the customer return back to the original brand, the competitor will simply reduce the price to attract this customer back.

That what happen to Dugro and Dutch Lady 123/456. Once upon a times the price range from RM 21.99 to RM 25.99. Now it can be lowered to RM17.99 depending of the sales.

Dugro and Dutch Lady fighting for the same customer base and they don't have a choice but to fight for the lowest price they can gives. Maybe it is not all the times but it's happen and if you have a toddlers this is the opportunity for you to get the lowest price.

Understanding the flow makes you understand the situation more and how you can takes the action.

Why do you supposed makes the soy sauces getting cheaper now. Suddenly the bust of every brand which is much cheaper than the recognise brand come to the market. In order to survives, the big company campaigning their brand in every media outlets available.

News around is that the soy bean prices is increasing. Soy beans is the major raw material to produce the soy sauces. How can the soy sauce prices getting lowered if the soy bean is expensive.

The answer is, someone getting the cheaper soy beans somewhere. The soy beans from America's maybe expensive but America's was not a sole producer. There are some other countries produce soy beans too.

But still the unknown brand get a shelves clearance because of the price. Like a friends said, when you Masak Kicap, the brand is second because you added a lot of things to make it more delicious. And you used a lot of Kicap too. Using the unknown brand makes no different.

Unless you want to directly eat from the bottle which you must buy the brand you like, the cooking soy sauces brand makes no different at all. It's the same as chilly, tomato and oyster souse.

The choice is ours actually and if we play it right, you can reduce the prices of a lot of items from dailys to monthly.

So, before you blaming every living things in this world for prices increase, check your purchasing trend first. Then check your attitudes toward what I always brand as the superiors "I must have the best things available in the world" attitudes. Than check your facts.

The supplier and distributors are the biz people. Their aims was to seek out the lowest supply and sell for the highest prices available. They are playing the games now. What they do was simply using every reasons they can get to increasing their revenues.

They push to government to reduce the import tax for raw material and others biz tax and then blame the government because of they said of increasing the finish goods prices during production.

And the beauty of it is that they get away from any blames coz they can blames Federal government for their greed.

You who fall in this trap will becomes a fools who playing a part for them to garnered more money to their pockets.

Yes the price of  petroleum's, water and steel increasing year in and year out. But it's happen everywhere. Now do you supposed your dry goods need to used a lot of that items when they are producing hundred of thousand of that items everyday?

Trust me, they will used every cost reducing method available just to maintain or reducing their produce product cost. Only a fool in biz will succumb to this cost increasing trends without taking any actions to maintain or  reducing their produce product cost.

That is why a product clearance by a factory was a lot cheaper than the product you can get in the market. That is why, some people makes a life of searching for this kind of sales and buy in a bulk.

They can sell it back with a lower than a market price and it will be gone in a couple of hours top while they rakes a lot of money.

Have you ever asked yourselves why the prices was glaringly different than the market? Please do. It is times for you to asked this type of questions.

And that is why I'm questioning the people who trying to abolish the GST. What I see is, they are the same people who cannot used the tax as the reasons to increasing the price anymore because the prices from producer is the fix prices and they cannot put the tax rationalised on the items twice..

If they need to increasing the prices they need to justify it or people will start questioning their true agendas. It a taboo questions. Answering it will cost a major scandals to their biz no matter how they want to spin it.

Be, a smart human being and be vigilance in this type of people who willing to do anythings to be rich and richer. Don't simply accept their reasons. Questions it. Be fair and you will see that if you getting smarter you can contributed in reducing the price.

You and you alone have a power. If you found an items which is cheepers, used your outlets to inform everyone. Don't tell me you don't have an outlets. Almost everybody have a FB and each connected to everyone else. You may not know the same people but each have their own cycle.

If you simply post item A was cheaper than items B with the same taste and structure, ten share will make it to known to thousand. Don't believed me, try ask your friends how many friend they have in FB.

Each times FB will post a message of someone you may know coz they were a friend of your friend, look at it carefully and tell me how many times the persons the FB inform us is someone you really know.

Let's be smarter and takes the best actions. The best way to teach them is simply stop buying their product. If you cannot do it, reducing the frequency of using this product was the second best options.

Buy it when it is much cheaper. If a lot of people doing it, it will show in their market trend study and trust me, their will find a way to reduce the prices or facing losing the customer.

Makes this reducing the price by taking a step of pushing the distributer and producer, your new year resolution. You have the power, USED IT.

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