Tip For the CONSUMER:
With technology improving everyday, we can make life simpler by doing things with the computer. The internet which connects us to the world is just a click away, and yet some of us are not using this to our advantage. The internet can allow us to access to different information easily. But how does this help the consumers?
The internet allows us to find the cheapest ways to buying, or doing something. For example, Online shopping is a great way to save time and money as the items on the internet are normally cheaper than what you find in shopping malls. The items in malls are normally more expensive because they have to pay the workers and rent for the space they use to sell their products.
When we want to look for entertainment, we normally go out for a movie at the cinema. In Singapore it costs about S$10 for a ticket. But now that the internet is so useful, we can watch these movies online without having to pay for anything. Websites such as www.movie6.net can allow consumers who wouldn't mind watching their movies in a smaller screen can save a lot of money in the long run.
For people who drives only once or twice a week, it is unwise to buy a new car just for the one journey you make every week. Instead, these consumers could use the online rental to rent a car and only pay for the hourly/daily rental and the petrol they use, and not pay for an entire car which they hardly get to use. Website such as http://1stforcarhire.com/ can allow us to choose the pick up and drop off dates for the car which also allows the consumer to plan their trip accordingly.
Tip for the PRODUCER:
The recession have caused the consumers to spend less to cut down cost. But the producers too can do things to cut cost. The best way is of course, to lay off extra workers. Laying off extra workers means the producer don't have to pay salary for the worker which was a "cost" for the company. Doing this the producer can afford to lower the price of the product to generate demand. For example, if the cost of making the product is $10, and it was sold of $15, the profit made by the producer is $5. But if the producer lays off a worker, the cost of making the product is lowered to for example, $8. So the producer can afford to lower the price of the product on the market to $13 and still earn the same amount of profit, and yet generates a greater demand by the consumers because the product is cheaper.
The above are ways in which consumers and producers can cut cost and save money during this economic downturn. -Nicholas Hui T.W 5Z
Hmm, yes - laying off workers is always one of the things that firms look at when faced with a credit crunch. First of all, to make that good, don't you need labour? Secondly removing labour makes sense for a company, but for a society with so much excess labour, on the other hand, may lead to huge societal and economic costs.
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