Will cutting costs help this business clean up?
Dear Nanay,
My partner and I own a laundromat. Because of rising costs, my partner wants to raise our prices to protect our margins. However, I think we should cut costs instead by changing the detergent we use to a cheaper one and maintain our current prices. What do you think we should do?
Sara
Dear Sara,
If you change your detergent — depending on what detergent you change it to — I am afraid that the quality of your service may not be as good as it was before. Your clients might get upset. Isipin mo kung ikaw yung customer. Sanay ka na sa dating detergent na ganito ang amoy at ganito ka lambot. Tapos bigla mong babaguhin. (Just think if you’re the customer. You’re used to the old detergent with that particular smell and that softness. Then the owners would change it suddenly.) Your customers might become dissatisfied. And when that happens they might just stop coming to your laundromat.
If you really want to cut costs, you should look for other ways so that you will not have to change your detergent.
Maybe you can sacrifice a little bit of your profit. Maybe you can negotiate with the supplier of your detergent and buy wholesale. That way, you can get a better discount. Perhaps if you used to stock up for one month, maybe you can buy for two months. The additional volume might get you a bigger discount or better terms. Or perhaps you can tie up with the supplier of the detergent and advertise their product in your store. And in exchange, they can give you some additional discount or perhaps pay you in kind. In other words, baka ma ex-deal mo yung sabon… or at least some of it. (Maybe you could have an ex-deal with the supplier.)
In the end, depending on how much you need to improve your margin, you might have to do a combination of increasing your price a little bit and finding places to cut costs. And I understand your apprehension about raising prices, but sometimes you don’t have a choice. And if you ask me, I think it is too big a risk to change detergents as it is such a major component of your business.
Sincerely,
Nanay
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Big Party Or Small?
Dear Nanay,
My wife and I will be celebrating the first birthday of our only son this coming December. I want a small party. But my in-laws want a big party because he is their first and only apo. Should I just follow them or should I stick to my principles?
Jaime
Dear Jaime,
First of all, I will assume that budget is not a problem and that we are just talking about principles.
Because if your budget for the big party is a problem, then I think you should talk to your in-laws and explain the situation. Tell them that you have limited funds and that you would really like to save the money for your son’s future and for his education. And if that is the case, I think your in-laws will understand. Hindi tama yung magkakautang ka pa para lang doon sa party ng bata. Kung uutang ka, gamitin mo para sa matrikula niya. (It’s not right if you borrow money just to spend for the party of the kid. If you’re going to borrow money, it should be used for paying tuition.)
Now, if we are just talking about your principles, then you are in a difficult position. I think the decision belongs to you and your wife, and not anybody else. Maybe the two of you should talk about it and come to a mutual agreement about what is best for you and your son.
However, if you ask me, I would tend to agree with you and would personally prefer a small party. Go to Mass, thank God that your son has reached his first birthday and have a small lunch or dinner for your family and close friends. Keep it simple and intimate.
But, as I said, at the end of the day, kayo ang kailangan mag desisyon at hindi yung ibang tao. (You’re the ones who have to make the decision and not others.)
Sincerely,
Nanay
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