MALAYSIA Tanah Tumpah Darahku


Friday, September 29, 2017

Mat Maslan IQ 3.85 Said GST Will Lower Prices, Now MARA Chairman Says Monopoly Will Lower Prices !!

Remember this super moron :


Well now another moron has waded out of the swamp.


MARA chairman Awang Adek defended sole distributor for Bumi digital mall
which is  losing money.

newly-appointed chairman said order stocks in bulk
to secure products at cheaper prices.

create volume so that prices become cheaper 
benefits passed down to individual shops Awang explained 

single supplier becomes aggregator to get cheaper supplies
individual shops volume not there, prices can’t be lowered

traffic and business slumping at two-year old MARA Digital Mall.

higher prices huge factor driving customers away
which they blamed on the supply monopoly

prices 15 to 20% higher than Low Yat Plaza
Awang said he would get supplier to clarify soon.

Traders required to source stocks from WGN Scan 
purchases from another dealer 1.5% charge per item
Traders who fail to do so pay RM500 summons

sales at mall RM200,000 - RM400,000 weekly 

My comments :  RM400,000 sales weekly for the entire mall  ??  That is less than RM70,000 sales per day. If there are 50 retailers, that is about RM1400 sales per day per retailer. Considering rental is RM3500, say minimum TWO staff at each lot at RM1,500 salary and a profit margin of 20%, they can barely cover rental and salaries.

Here is more news :

Their sales are down 60%.  
Rental is going up 5%.  
Shut the place down.  
They are not going to survive.

The new Chairman says that in this case a monopoly supplier is good for lowering prices.

But the gomen has crafted that Competition Act 2010 or something that is being used to bully other businesses (especially Chinese SMEs) for monopolistic business practises.

How come monopoly supplier and monopoly pricing suddenly becomes a good thing just because Malays and bumiputras are involved?  Once more this is the "Tak Tahu Niaga School Of Business".

And obviously the fact that the digital mall is failing is proof enough that the selling  prices are too high. And the selling prices are too high because (the traders are complaining, bukan saya yang cakap) they are forced to buy from one single supplier at higher market prices.  That is a monopoly situation.

Monopolies are always bad for the people.

If you want to really help the traders, then pool their orders together so that they can enjoy the benefits of bulk purchasing.  

This is frequently done by others including a group of bumiputra pharmacies we once met.  One pharmacy will collect orders (and money up front) from fellow pharmacies to buy certain supplements and or medicines to get a bulk discount.  Another pharmacy will do the same thing for other pharmaceutical products. 

Sometimes there is a small service charge to cover handling and transport.

In the case of the MARA Digital mall it appears to be different. 

Obviously the "sole supplier" is putting his own mark-up on the purchase prices.  He is not just imposing a 'service charge' for bulk purchases.  He has indeed become the sole supplier.  

Possibly he uses his own funds or borrowed funds (and takes his own risk)  to buy the items.  I suspect he may also be buying items on his own, without an express order from the traders. And then trying to push it off on the traders. So he has to mark it up.

It is still a monopoly situation. 

The Competition Act that has been crafted by the gomen (to bully Chinese traders) says that monopolies are not good.

Here the Chairman of MARA says that monopolies are good. 

Not only that, they appear to be exempted from that same Competition Act. 

Orang lain tak boleh.
Orang kita boleh.

Niaga style apa ini?
Satu untuk kau, dua untuk aku. 

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