Wazua
»
Market
»
Pennywise
»
Airtel could drop low-cost strategy
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
LINK: http://www.nation.co.ke/...0/-/me9mk4/-/index.html
I liked this comment: “Unlike India, we were surprised that in Africa, lower tariffs could not increase volumes. In Africa, subscribers use the money saved on lower-calling rates to buy food and not to talk more. This means that we have to think of a new model that works there,” the firm’s chairman and MD, Mr Sunil Mittal, said. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: New-farer Joined: 8/25/2010 Posts: 97 Location: Kenya
|
The writing has been on the wall. Swallow the humble pie and increase call rates coz cant see any other escape route for Airtel. Engaging in day light robbery thru non functional data bundles and other uncouth behaviors will add more damage to the company.
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
Reminds me of the experience I went through one time. I used to charge sh9k for one of my products and would get about 5 orders per month. I thought the price was too high so I dropped it sh6k but still got about 5 orders per month. Then I dropped further to sh3,500 but the volume remained! So I started increasing all the way back to 9k....then to 12k then to 15k.... and within one year I went to 25k. Guess what, I still get about 5 orders per month. Moral of the story: cheap does not always sell more! I am now considering hiking the price to sh50k by the end of 2012... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Elder Joined: 1/27/2011 Posts: 1,777
|
So what are this Indians going to do now that their little trick of low cost calls only served to put ugali on the table rather than making people make more calls?
|
|
|
Rank: Elder Joined: 10/14/2009 Posts: 2,057
|
mukiha wrote:Reminds me of the experience I went through one time. I used to charge sh9k for one of my products and would get about 5 orders per month. I thought the price was too high so I dropped it sh6k but still got about 5 orders per month.
Then I dropped further to sh3,500 but the volume remained! So I started increasing all the way back to 9k....then to 12k then to 15k.... and within one year I went to 25k. Guess what, I still get about 5 orders per month.
Moral of the story: cheap does not always sell more! I am now considering hiking the price to sh50k by the end of 2012... those are abnormal profits you are making if you can play with pricing like that - are you a monopoly or what? what exactly are you selling, i may end up being the 6th customer.. If you are an eagle don't hang around with chickens; chickens don't fly....
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
vinii wrote:mukiha wrote:Reminds me of the experience I went through one time. I used to charge sh9k for one of my products and would get about 5 orders per month. I thought the price was too high so I dropped it sh6k but still got about 5 orders per month.
Then I dropped further to sh3,500 but the volume remained! So I started increasing all the way back to 9k....then to 12k then to 15k.... and within one year I went to 25k. Guess what, I still get about 5 orders per month.
Moral of the story: cheap does not always sell more! I am now considering hiking the price to sh50k by the end of 2012... those are abnormal profits you are making if you can play with pricing like that - are you a monopoly or what? what exactly are you selling, i may end up being the 6th customer.. There is nothing "abnormal" about profit as long as the buyer is not coerced into buying. Those who don't want what I sell don't buy it - even if I offer it to them free of charge! Those who want it are willing to buy at whatever price... so far we've reached 25k Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Elder Joined: 9/12/2006 Posts: 1,554
|
I kept saying this strategy wont work in Kenya.... Airtel have looked at the numbers and they are feeling the pain hurting in the wrong place... they will look at the numbers released by Bob C... compare with theirs and someone will get fired, as has been the case since celtel..
|
|
|
Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
|
Bora wasiguse data charges. Hiyo italeta vita. 
|
|
|
Rank: Elder Joined: 9/12/2006 Posts: 1,554
|
@Qw, wakigusa data italeta quality na speeds noma vi-deadly
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
|
mukiha wrote:LINK: http://www.nation.co.ke/...0/-/me9mk4/-/index.html
I liked this comment: “Unlike India, we were surprised that in Africa, lower tariffs could not increase volumes. In Africa, subscribers use the money saved on lower-calling rates to buy food and not to talk more. This means that we have to think of a new model that works there,” the firm’s chairman and MD, Mr Sunil Mittal, said. This can only be hate speach or racism! Though funny. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
Speech, speech,speech. Indians drink alot of tea, chili, spices,... Is this also hate speach? The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
|
mukiha wrote:vinii wrote:mukiha wrote:Reminds me of the experience I went through one time. I used to charge sh9k for one of my products and would get about 5 orders per month. I thought the price was too high so I dropped it sh6k but still got about 5 orders per month.
Then I dropped further to sh3,500 but the volume remained! So I started increasing all the way back to 9k....then to 12k then to 15k.... and within one year I went to 25k. Guess what, I still get about 5 orders per month.
Moral of the story: cheap does not always sell more! I am now considering hiking the price to sh50k by the end of 2012... those are abnormal profits you are making if you can play with pricing like that - are you a monopoly or what? what exactly are you selling, i may end up being the 6th customer.. There is nothing "abnormal" about profit as long as the buyer is not coerced into buying. Those who don't want what I sell don't buy it - even if I offer it to them free of charge! Those who want it are willing to buy at whatever price... so far we've reached 25k Hii kitu wewe nauza must be in powdered form. Which other bizna are you running beside it to cover up?A salon/kinyozi most probable! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Member Joined: 5/12/2009 Posts: 266
|
True, loweer call rates dont add more profits in kenya.
What Airtel should do is to add more value to their products,just like safcom do, they innovate and advertise their products aggresively.
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
Cardinal wrote:True, loweer call rates dont add more profits in kenya.
What Airtel should do is to add more value to their products,just like safcom do, they innovate and advertise their products aggresively.
A good lesson for them but there are so many areas they can get a competitive advantage like roaming in the region (one network). They used to have most corporate accounts as kencell. Wonder what happened. Life is short. Live passionately.
|
|
|
Rank: Elder Joined: 10/9/2008 Posts: 5,389
|
Saw the data bundle costs in todays Daily Nation and they are cheaper than Safcom. How much is the airtel 3G modem costing?
|
|
|
Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
|
jaggernaut wrote:Saw the data bundle costs in todays Daily Nation and they are cheaper than Safcom. How much is the airtel 3G modem costing? i have seen airtel is capping bandwidth @ 30 KB/s . I just hope its because of the cable cut. Otherwise its totall crapp if they will be capping it. I cannt even stream videos.
|
|
|
Rank: Elder Joined: 5/27/2008 Posts: 3,760
|
The bundles now come with a validity period, which was not the case previously. So what happens to me with some 2 GB on my phone I had expected to use in the next 6 months? BTW, I have noticed that I have been automatically subsribed to the 50MB bundle.
|
|
|
Rank: Member Joined: 9/12/2008 Posts: 20
|
mukiha wrote:LINK: http://www.nation.co.ke/...0/-/me9mk4/-/index.html
I liked this comment: “Unlike India, we were surprised that in Africa, lower tariffs could not increase volumes. In Africa, subscribers use the money saved on lower-calling rates to buy food and not to talk more. This means that we have to think of a new model that works there,” the firm’s chairman and MD, Mr Sunil Mittal, said. Does it mean that we are this hungry? So where does safaricom get its profits from? For airtel they came into the market through a copy and paste from India. I hear they outsourced and each department is two or three companies. How do they make profits and yet this companies are also for profits? They need to make kenyans feel as part of them. Maybe they could sell shares but who will buy unless they make profits or still make a kenyan as the CEO.
|
|
|
Wazua
»
Market
»
Pennywise
»
Airtel could drop low-cost strategy
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|