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Airtel could drop low-cost strategy
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jerry
#11 Posted : Saturday, March 03, 2012 7:08:06 PM
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.
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Impunity
#12 Posted : Saturday, March 03, 2012 7:11:55 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
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.
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Cardinal
#13 Posted : Saturday, March 03, 2012 7:41:58 PM
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.
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sparkly
#14 Posted : Sunday, March 04, 2012 8:32:25 AM
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.
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jaggernaut
#15 Posted : Sunday, March 04, 2012 3:07:04 PM
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?
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QW25091985
#16 Posted : Sunday, March 04, 2012 3:29:42 PM
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.
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Gordon Gekko
#17 Posted : Sunday, March 04, 2012 3:55:23 PM
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.
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am6612
#18 Posted : Monday, March 05, 2012 11:12:32 AM
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.
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