Pyramid Comment

This journal takes an alternative view on current affairs and other subjects. The approach is likely to be contentious and is arguably speculative. The content of any article is also a reminder of the status of those affairs at that date. All comments have been disabled. Any and all unsolicited or unauthorised links are absolutely disavowed.

Tuesday, February 12, 2008

Raising Prices To Compete

Thanet Leisureforce (TLF) is attempting to justify an increase in hire charges (2008) for beach huts. After continuing to review the "programme of investment" and together with Thanet District Council it has been realised that charges are less than a number of other seaside resorts from across the country:

Too low

As a result, the assessment has indicated that the old charges did not compare with this national norm and the tariff for Thanet was put at the bottom of the table. These charges are not advertised on the TLF website. Presumably, so that they can be announced at an appropriate time in the future, yet it is made clear that: 

it is advisable to reserve you (sic) chalet well in advance
because many of our customers are
coming back year after year

But doesn't mention that the number of returning customers may be in decline. Year after year. The rather perverse logic is to raise prices to 'remain' competitive and charges should be increased to be in line with everywhere else.

This appears to simply be a...

justifiction to raise prices

It seems to TLF that to put charges too low is a bad thing and to remain competitive (with what? - DA), prices should be increased. This will have an opposite effect to that (presumably) desired. Local people patronising the area will spend money in the area. But discouraging these people will restrict the flow of revenue to local business. These will eventually disappear. Bizzare? No, but highly predictable. It's mismanagement on a grand scale unless...