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Buddy! i am really sorry to get involved in this discussion. My mentor told me that i shouldn't argue. MZS, i apology for what i wrote, which might hurt some friends' feeling. I understand that Chinese-targeted business is always harder to do due to many factors influencing on customers'purchase decision.
To MZS's questions, i am not interested in answnering them because i am just like to be a good listner and get good ideas from other. i am not smart, really, i am just a ordinary person. I just like to say same thing " business is business, it doesn't matter what size your business is", MZS misunderstood my point.
Since MZS friend asked me if i have idea how to handle price-conscious Chinese customers, i can briefly talk a bit. (i don't try to look smart, i don't need to, honestly, i am not smart) I like to take driving school as an example. Before you start your driving school, you know how many schools there are. You have talent to run a driving school, and you think you can make profit from the business. You draw up your business plan, investigating your competitors' operation. Most of schools look same charging from $200 to $400. So you know the low-end school can make money, but profit is very marginal. However, they have more students. High-end school can make better money from single student, but there are less students. Now you, the owner of the business wonders why low-end school charge less, why high-end schools charge more. There are unique features alllowing high-end school to charge them. How can a new owner survive these tough competition? You have to find a "niche", meaning how to position your shcool. Now we are in Chinese community, and you, the new owner, want to serve own community. You find all the Chinese schools are low-end ones. It is tough. You get a call, a Chinese boy there is asking "how much do you charge for 12 hours of road practice", you reply"$240", the guy screams on you" What?, that expensive? **** charges only $220", you are silent, then the boy asks " is it ok $200?", you may have no choice but say "Ok, you get deal". This is vicious cycle. It is very tough for this business. Can you blame on customers? but who likes to pay more?
Ok, if i was the new owner, i would do that. i have to find profitable niche in this business. I know price war is not solution. I will ask for $240 for 12 hours. i will (1)instruct coaches that they must pick learning student from home and drop them the place they like. (2) coaches are NOT allowed to cut one minute (3) hire coaches who speak different dialects (4) use good condition of car (4) specialize in female learners who need special attention, patient coaching, and nice smile. Advertise your school in Luby or other newpapers featuring your services. Finally Word of mouth will pay off. Do you think a female student will care the difference of $40.00?
This is just instant idea. I am not trying to prove anything or argue sth, i just like to help my own fellows. Really, if you get rich, i am happy too. I am just a pure businessman, one thing in my brian is PROFIT.
I don't encourage Chinese customers to bargain, it is not Canadian way, please.
Good Lucky! |
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