Why hotels should charge high prices during soccer world cup

They should charge more.  Hotels and B&Bs, your uncle’s Seapoint flat, airlines and taxis and the guys polishing shoes at the airport and garden services mowing lawns should all charge more during the world cup. “But they’re profiteering” you cry!  Well, yes, in a word. But if the incredible expense of building stadia in the […]

The Taxi and the Tea Party

The Taxi It’s fair to say the South African taxi industry isn’t besotted with the Bus Rapid Transport (BRT) system. It’s understandable too. No matter what assurances are provided around newly jobless taxi drivers being placed within BRT, the reality is that a more efficient service with larger vehicles will need fewer drivers. It’s also […]

How to spot competition

photo credit: richardmasoner It’s been widely reported that the Competition Commission has been proving an alledged bicycle cartel. Retailers alledgedly agreed to increase prices to improve margins. This is not a strongly competitive market, which makes it quite an attractive market and good margins and profits should be available. photo credit: shareski Vodacom  and Cell […]

Chavez – economic terrorist

photo credit: pablo/T Chavez is promising to take over rice processing plants in Venezuela because they have been refusing to sell rice at the price set by government. Hyperinflation is starting to show it’s head, as a function of government policies around money supply. The article I referenced claimed that that is the reason for […]

Profit margins on ice

Profit margins are being squeezed by decreased spending power of consumers. That is true, but it is also not the full story. Competitive pressures, buyer and supplier power dictate sustainable margins in the medium to long term. photo credit: abooth202 Fin24.com has a story this morning around Shoprite’s results and pricing strategy going forward. The […]

Presentation to ACAL on GI Pricing

I gave a presentation on a holistic approach to ratemaking using predictive models yesterday to the Lebanese Insurance Association (ACAL, the acronym for the association in French). Over a hundred people attended, and there certainly seemed to be interest in the topic. A common response though was that Lebanon isn’t yet ready for that, because […]