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No solution for this?


2012
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Neutral Newbie

Met a few army friends who are doing car polishing business at customers place. They were storemen, cooks or drivers I met in NS days, only had up to PSLE education or less.

 

They were doing ok and earning honest living despite not being smart from what I can see. All are hardworking.

 

But their humble business is badly affected in recent years as freelance competitors from MY undercut them agreesively doing the same home car polish here. They told me its hard to compete with these MY guys as they need more money to support their sgp families while the MY guys families live in low cost MY and therefore can survive well even with low prices [:(]

 

As customers we welcome cheap prices thru such competitions and can justify ourselves when we tell the local polishers that it's a free market, survivals of the fittest, or rather, the cheapest.

 

On the other hand I see my low education + not-so-clever friends suffer as victims of free market. Guess in all systems there will always be such situations where no solution can be found.

Edited by 2012
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Twincharged

personally, i have tried mobile grooming 3 times; 1st and 3rd time - not very good. 2nd time - groomer noshow !!

 

maybe depends on the car yo drive also lah ... those sporty eye catching cars will get better service as will be moving signboard ... but my one is lau-pok car ... no need waste so much effort ... [laugh]

Edited by Ysc3
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there are many Malaysian who has been doing decent polishing business more than a decade, also face the same problem, free market, demand & supply, too many cars in Singapore need such services.

 

less choice consumer complain they monopolized, more competition consumer happy, service provider not happy.

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Met a few army friends who are doing car polishing business at customers place. They were storemen, cooks or drivers I met in NS days, only had up to PSLE education or less.

 

They were doing ok and earning honest living despite not being smart from what I can see. All are hardworking.

 

But their humble business is badly affected in recent years as freelance competitors from MY undercut them agreesively doing the same home car polish here. They told me its hard to compete with these MY guys as they need more money to support their sgp families while the MY guys families live in low cost MY and therefore can survive well even with low prices [:(]

 

As customers we welcome cheap prices thru such competitions and can justify ourselves when we tell the local polishers that it's a free market, survivals of the fittest, or rather, the cheapest.

 

On the other hand I see my low education + not-so-clever friends suffer as victims of free market. Guess in all systems there will always be such situations where no solution can be found.

 

This trade is like hawker food. they need

 

Good feedback

Great skill

Cheap

Fast

Good customer service

 

I think hawker is a better trade, at least no need see the sky to work. Now rainy season how many ppl would send their polish?

 

 

 

 

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They are in a business where there is no product differentiation. The only way is thru better service and lower pricing but that kills at the end.Not to mention increasing business costs

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personally, i have tried mobile grooming 3 times; 1st and 3rd time - not very good. 2nd time - groomer noshow !!

 

maybe depends on the car yo drive also lah ... those sporty eye catching cars will get better service as will be moving signboard ... but my one is lau-pok car ... no need waste so much effort ... [laugh]

 

Wau lau that is very wrong attitude! U pay for service to doll up ur car. If that the case JB has more std. Last year before CNY I went permas for lunch right in front of a detailing shop so I ask the boss me how much does it cost. He came over to touch my car and feel the condition and quoted me my car at least that is decent base on my car condition.

 

Anyway I DIY detailing so just want to know my effort is worth how much.

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I really dun understand the words "victims of free market". If any business is anti-competitive consumers will be paying thru their nose, who will be the so called victim dan? Businesses have to be adaptable and flexible to survive. If they cannot compete in terms of rates dan they will have to compete in terms of service.

 

I know ppl will conveniently blame "FT" and make it an FT issue. But even if FTs are removed from the market consumers will sort to alternative when prices are deem too expensive and service is not up to standard. Grooming isn't rocket science, consumers can learn to do it themselves. They will still be at the loosing end.

 

Why are countries around the world promoting free trade or free market if it will create "victims"?

 

This is what I call ppl who are victims of their own twisted ideas. Anything not going their way means they are the "victim". Yeah right. [rolleyes]

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Neutral Newbie

I really dun understand the words "victims of free market". If any business is anti-competitive consumers will be paying thru their nose, who will be the so called victim dan? Businesses have to be adaptable and flexible to survive. If they cannot compete in terms of rates dan they will have to compete in terms of service.

 

I know ppl will conveniently blame "FT" and make it an FT issue. But even if FTs are removed from the market consumers will sort to alternative when prices are deem too expensive and service is not up to standard. Grooming isn't rocket science, consumers can learn to do it themselves. They will still be at the loosing end.

 

Why are countries around the world promoting free trade or free market if it will create "victims"?

 

This is what I call ppl who are victims of their own twisted ideas. Anything not going their way means they are the "victim". Yeah right. [rolleyes]

Don't mind avoid using FT in posts please?

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No product differentiation?

 

Not really, your friends can differentiate themselves from those cheap MY fellas by providing good service and results and reliability.

 

Customer have brains, they will go to whoever they can trust.

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Let us see the issue from another prespective

 

Many biz set their prices based on the company overheads and profits. However, this pricing model is totally wrong. The way to set the pricing must be from the prespective of what the potential customer is willing to pay for such services.

 

And based on the price that the customer is willing to pay, the biz will then look for ways to provide the service within its cost & overheads & earn a decent profits for the services provided.

 

Add provide value added service is important too. Do not charge for little things and that cost little to provide but make the customer damn shiok will ensure they keep coming back.

 

For car polishing biz, study what the competitors are not able to provide. I am sure the Malaysian groomers have its limitations. Can be equipment, can be skills, can be working hours, can be attitude etc etc.

 

 

 

 

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Let us see the issue from another prespective

 

Many biz set their prices based on the company overheads and profits. However, this pricing model is totally wrong. The way to set the pricing must be from the prespective of what the potential customer is willing to pay for such services.

 

And based on the price that the customer is willing to pay, the biz will then look for ways to provide the service within its cost & overheads & earn a decent profits for the services provided.

 

Add provide value added service is important too. Do not charge for little things and that cost little to provide but make the customer damn shiok will ensure they keep coming back.

 

For car polishing biz, study what the competitors are not able to provide. I am sure the Malaysian groomers have its limitations. Can be equipment, can be skills, can be working hours, can be attitude etc etc.

You must be kidding. When you are running a business every cent counts. The basic cost(grooming products, equipment) + labour cost + transport cost are main considerations, it has to have some kind of benchmark to begin with. Consumers do not know these costs so it's impossible for them to set a price. They will just any-oh-how. You like that do business you will fold before you can start.

 

Little things accumulate to hugh costs. That's also how companies cut cost. Look at the recent fast food measures to stop ppl from abusing the "little things". They cost money and they do not fall from the sky. It's already factored into the food cost and not let ppl know and ppl naively think they dun charge the "little things". Get real. [rolleyes]

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They are in a business where there is no product differentiation. The only way is thru better service and lower pricing but that kills at the end.Not to mention increasing business costs

Not no product differentiation lah. It is low barriers of entry.

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when my car cost $70K and the polishing guy charge me $150 per polish every 6 months, i was ok. When the same car cost me $100K, i have to look for area to save cost [laugh] [laugh]

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You must be kidding. When you are running a business every cent counts. The basic cost(grooming products, equipment) + labour cost + transport cost are main considerations, it has to have some kind of benchmark to begin with. Consumers do not know these costs so it's impossible for them to set a price. They will just any-oh-how. You like that do business you will fold before you can start.

 

Little things accumulate to hugh costs. That's also how companies cut cost. Look at the recent fast food measures to stop ppl from abusing the "little things". They cost money and they do not fall from the sky. It's already factored into the food cost and not let ppl know and ppl naively think they dun charge the "little things". Get real. [rolleyes]

 

What I am saying is don't be penny wise and pound foolish. If spending S$1 can generate a biz value of more than says S$1, then it makes sense to spend. And the biz value is not measure based on dollars and cents. It can be goodwill generated, it can be feel-good factors etc. All these will eventually be translate back to dollars and cents. I am in business with a partner and a team of workers for 4 years already. This philiosophy works for us. I hope it works for others too

 

As for "consumers do not know these costs", seriously, most of them, they know. Just act blur only. So as a biz, we have to educate and inform them. We lost plently of biz to low cost manufacturers. However, most of them come back to us after their bad experiences with the low cost manufacturers. We know our products and we also know our price higher than our competitors based on customers feedback. But we know we are providing a quality and service that is way beyond what we charge our customers. They will come back.

 

Start a biz is not easy. My partner and me went without pay for 8 months when we first start the biz. On top of that, we have to dig into our savings to buy components, equipments, pay rental, utilities and salaries to our workers. It is a big decision and till today, I still cannot figure out where do I have the courage and guts to take the plunge.

 

 

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