Friday, July 1, 2011

Pre-paid product package = shaky business?

Pre-paid product package = shaky business? I just had a Chinese herb and turtle pudding. The sales lady was doing such hard job in promoting a pre-paid package to me despite of my gentle rejection to her. It's like I have to have Chinese Herb everyday for the next 3 months or something. Such annoying experience.

I always feel suspicious why a company wants to discount their product and push me to buy large volume of products. Not that I don't understand the "volume-discount" concept but I don' t fell comfortable with the "Future-Volume-discount". Especially for companies with a non-basic needs (like many Chinese Herbs, Yoga, Yogurt shops and Beauty other services).

If these companies have more business than they can produce, they probably would not sell these pre-paid volume package at discount because it means unnecessary discount and lesser revenue.

On a positive perspective, these companies simply drive consumer to buy more than they need. Nothing's wrong with this until they have very pushy salespersons.

ON the other hand whenever a company push a sales pre-paid package to me and they don't have a full house of customers surrounding me, I will automatically think that the company's business is simply NOT operationally profitable with negative cashflow so they have to "artificially drive up the sales turn over" to make end meets. And I feel that the company is gonna fold up or something....

Hong Kong has many "Yogurt Shops" pops up these days and they are selling pre-paid package as well. Not only that the "commercialized Yogurt" has a lot of sugar and calories which makes it less healthy than it's reputation as a healthy replacement vs. ice cream, but the fact of eating too much Yogurt does not sounds like a natural things to do. I think this is more likely a unsustainable trend. The market size is not that big and it's unlikely to support all these shops. I'll be careful in buying any pre-paid package.

SCMP has a good article about Yogurt - The five myths of froyo debunked