Latest update April 25th, 2024 12:59 AM
Mar 21, 2017 Letters
Dear Editor,
From a business point of view, the steep reduction of the parking meter fees that was announced by the Mayor and City Council can fall into either of two categories, namely a discount or a loss leader. Discounts are used to attract customers to purchase goods and services over a period of time. In the parking meter scenario we can classify it as the purchase of a service by the persons desirous of utilizing the parking facilities. Discounts are a reduction on the selling price of the service but it does not result in a financial loss. In other words, prices do not fall below the cost of the service and profits are realised.
If the M&CC and SCS are making a profit with the reduction from five hundred dollars to one hundred dollars it makes this one of the best deals on the face of the planet. I cannot think of any investment in today’s competitive environment where a discount of five times the standard price still allows for profits.
On the other hand, businesses use what is called a loss leader. It is a reduced price, below cost that will attract customers. Businesses absorb losses on the service to drive traffic to a location. However, loss leaders cannot be sustained for an extended period of time, so the price is usually increased within a short time frame. Editor, was the reduction of parking meter fees a discount or a loss leader?
M. Craig
Jagdeo giving Exxon 102 cent to collect 2 cent.
Apr 25, 2024
By Rawle Toney Kaieteur Sports – The French Diplomatic Office in Guyana, in collaboration with the Guyana Olympic Association and UNICEF, hosted an exhibition on Tuesday evening at the...Kaieteur News – Dr. Bharrat Jagdeo, the General Secretary of the People’s Progressive Party, persists in offering... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]