PPRuNe Forums - View Single Post - Why Alan Joyce was wrong choice for Qantas
Old 11th Feb 2011, 02:53
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Sunfish
 
Join Date: Aug 2004
Location: moon
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Lester:

Airborne; you are a consumer too. Do you opt to pay top dollar for every product?
Lester, Lester, Lester baby! Oh baby! Have I got a bridge to sell you!

The whole idea of marketing in the last Ten years is to find out and capitalise on HOW HIGH A PRICE THE CONSUMER IS WILLING TO PAY!

The idea is to get the customer to maximise his spend!

This is why when you go to Starbucks you will see Five different coffees in Four different sizes with six different toppings. That is the point of the joke about the group ordering their coffees; "I'll have a skinny baby chino with a twist, etc."

The car industry learned this in 1950. The basic car costs say $5000.00, we add $500 worth of extras and charge $10,000 for the "GT" model with the racing stripes.

I think VB understands this better than Alan Joyce and Ryanair.

They already charge extra for the exit row seats. If it was possible, I'd be charging for seat room by the inch. Same with baggage - scrap the limit and impose a low charge per kilo, etc. Food and drink? Optional at extra cost.

The idea that a customer simply wants a low fare is so passe. Ryanair is raising its fares because it understands that the low cost model is never going to be sustainable.

To put it another way, I want a low fare.. sometimes. Other times I want to pamper myself, but I ain't payin $8,000 for a business class seat.
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