Larry Gude
Strung Out
Hechts could NOT stay in biz against the new models and neither could Hechingers. No one goes out of business when cutting prices TO THE MARKET will net them solid profits. No one.
Caesar's Pocono Resort
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Hechts could NOT stay in biz against the new models and neither could Hechingers. No one goes out of business when cutting prices TO THE MARKET will net them solid profits. No one.
I agree it's absurd. But that is indeed what businesses do more often than you'd think. You would have to ask them why.
My boss at Channel 10, when we were pricing out ad packages, used to say, "Let's charge $1mil a spot - that way we only have to sell one." It was a joke, but there are a surprising number of business owners who do think that's a valid pricing theory.
They were trying to sell high dollar in an ever-changing Kmart world.
Sports authority was another overpriced example.
Other competitors prices were better, more variety. Declining sales, increasing debt... Chapter 11.
Larry Gude
Strung Out
But, again, is the contention that they WOULD have been acceptably profitable, ie, as good or better return to goal, by lowering prices to market?
I can accept a business that says "We shall sell at X or close up because X represents our goal for ROI and anything less, we'll close up and go do something else."
I do not accept the argument if it means someone who wanted to say in business, and could have done so, and been fine, by meeting market prices chose to go out instead by choosing to set prices above market.
Don't accept it then. :shrug: What the people I've spoken to said was that business was slow and they had to raise prices to make up for the lower sales volume. They didn't indicate that they were trying to put themselves out of business.
Yes, this.
They expected clientele to continue to support their business and by the time they realized it wasn't happening, their customers had gone elsewhere never to return.
acommondisaster
Active Member
Our place isn't too far from Penn Hills Resort. I can only guess by what I've seen. Poconos is very seasonal; off season most places are ghost towns. What is open has a skeleton staff, and they don't pay well (because they can't afford to in off-season) and things get run down, service suffers, rooms deteriorate and restaurants close up. Those honeymoon places arent really where you stay when you take your family skiing or for summer vacation, so their appeal is pretty narrow to start with.
You'd think with the average income being so low, the cost of living would be reasonable, too - but it's not. Our less than half an acre costs us more than $4k in taxes, electricity is high. Drugs are a huge problem and many people commute to NYC to work.
I dont mean to paint a bleak picture - it's a beautiful area - but nothing is really thriving there. It's definitely not a place to start a new business. Prices are high to sustain through the off season. Sad to see what's happened to some of the buildings, but it's a common thing to see buildings in the area boarded up and crumbling.
You'd think with the average income being so low, the cost of living would be reasonable, too - but it's not. Our less than half an acre costs us more than $4k in taxes, electricity is high. Drugs are a huge problem and many people commute to NYC to work.
I dont mean to paint a bleak picture - it's a beautiful area - but nothing is really thriving there. It's definitely not a place to start a new business. Prices are high to sustain through the off season. Sad to see what's happened to some of the buildings, but it's a common thing to see buildings in the area boarded up and crumbling.
but if you can 'afford' a cabin in the woods you are 'rich' ...... right :shrug: