Increase in Transport Cost, Valid Reasons PleaseÂ….
I have been shocked with the recent revision of transport prices, even more stunned to know the reasons behind them and there is more to come.
The reason citied by the Minister was to ensure “good service” by making sure that the transport companies remain profitable.
To me, this is an impossible way of thought in a normal business environment. In a competitive environment, there are various way to increase profits, the last resort will only be increasing the price of your product/service. Why? Because consumers have a choice, if Stall A suddenly increases the prices of his coffee, you can always visit Store B or C, etc.
Imagine this situation, when you are confronting a company with regards to increase in its price, would it be absurd that he explained that it is to allow his company to make more money, so that he will provide better service!
Therefore, in a normal competitive business environment, to increase sales, we provide better services or revamp ourselves FIRST, rather than ask for more money from consumers to do so.
Another point, being in a monopoly in our Transport sector, consumers do not have a choice, but to resign their fate to such inappropriate fare increases. With competition, we will definitely look within to improve profitability rather than outright product/service price hike.
Talking about rising costs, which company does not experience such a “phenomena”, but which company dares to raise its selling price without fear of disturbing loyal customers? For one, I would love to be able to use the reason from our transport companies to increase my products prices without incurring the wrath of customers.
There are more than 1 way to improve a company’s earning and profitability, why did not the company look within? To develop more efficient operating system? Why can’t there be layoff or salary reductions? Isn’t that common among private sectors? And if transport companies are to be considered a “private company” to achieve profitability, do allow them to compete fairly too. To comment on internal revamp and profitability is difficult too, as it should be relative and based on sectors. This is because lack of competition among their industry.
To put things in a crude manner, why can each of the board of directors, Executive Officers or Managers take a pay cut to allow the company to earn more? Rather than inflict the damage on 4million Singaporeans.
Lastly, can anyone do a rough calculation of the amount of money it stand to earn from a mere 1-2 cent increase? And also, rising oil prices is a sad and sorry excuse, it goes up and down, so when it hits a valley, would the transport company automatically apply for a fare decrease?
