Discount

Madeiraful Editor/ November 8, 2017/ Blog, Business, Madeira Islands

Everybody loves discounts, correct? But is it always a good thing to get? It totally depends on the background situation.

Getting a discount on clothing as the new season rolls around feels great. The retailer needs to move the merchandise to make space for new items. That is good for both parties.

But companies will never give huge discounts on the latest models. Have you ever seen the latest car model for half price? Neither did I, because the company invested a lot in the development and cannot give it away for free. Quality has its price (although we also all know that the price of an item is not always only based on costs but also on image and fame, and that is priceless).



In the restaurant world there is a new phenomenon: TheFork, a Tripadvisor company where you can ´discover and book the best restaurants at the best prices´. So TheFork is using the free given reviews from customers at Tripadvisor to make money? Restaurants have to pay to the company to participate, and they will have to give a discount to the guests that book through this website (another medium that the restaurant must check for bookings, in stead of paying attention to the customers what should be their core business). This means the restaurant must pay to give a discount, sounds weird….. I cannot imagine the consequences for the restaurants, I am sure they have to cut back other costs to make this work. Maybe they will make the portions smaller, use ingredients with less quality or more frozen ingredients? To be honest I prefer to pay a bit more for a good meal than 50% less with a long term result that the quality of the restaurant is going down.

A good price – quality balance is the best, than we have a win-win situation and is everybody happy…