Win the Pricing Power

wind_feng 的头像

The short pants I got from Bali always remind me of the story.

They are initially priced at RM 40 per piece and I got them at RM 8 per piece.

All I can see there is a hyper saturated market, over 200+ stores around the small island selling the same thing.

There are also giant volume vendors that rent bigger stores and sell everything at cheaper price.

They lose their pricing power completely.

So all I do is to figure out the cost of a pair of short pants, and add a little value on it based on the rental and a little profit for the storekeeper.

When I said I can only pay RM 8 for the pants, their faces turn green.
When I walked away from their stores, they chased me from behind, afraid that they will lose the business.

I know I will win.

So I wear those short pants as to remind myself of the story.
When the market gets saturated, it's time to pull out.

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