Parallel Lines: Mathematically safe?

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The economic slowdown is a good thing and I am happy. Let me explain. I have four children and so the fall in house prices is a great weight off my shoulders.

There is now a chance if they live on dust and work 26 hours a day, they may be able to afford their own home before I’m a great-grandfather.

If one of them wins the lottery maybe they can even have one each.
But, as we know, every silver lining has a cloud. The original mobile express, a gravy train on biscuit wheels, is down to its axles.

A five-year-old with a passing interest in arithmetic and a sharp pencil could work out that, in the end, reducing the cost of a product/service by 20 per cent every year doesn’t add up.

If you were paid handsomely over the years to give away that margin – paid more than peers in other industries for doing so – you might be forgiven for making an inaccurate assessment of the value of that particular skill in today’s marketplace.

Have so many ever been paid so much for simply giving margin away, and given so little guidance in how not too?

The consequence is that, now, every single existing and potential customer in the UK is conditioned to expect further reductions as the norm. Many within this industry are not competent to deal with the challenge.

I don’t know exactly how much margin is left. But I do know it would be a good idea to learn how to retain some of it quick.

Those that don’t will wither and die. If there was ever a time to go back to basics, it’s now. The primary objective of a business is to create and keep customers profitably.

Why? Because profit pays the bills, not connections. Fields full of pre-registered cars are testament to that. If you think house prices have fallen, look at the value of cars.

Now, you tell me:

• Has anybody ever self connected a SIM?

Full article in Mobile News issue 431 (January 26, 2009).

To subscribe to Mobile News click here.

Alasdair Jeffrey is an independent consultant. He has worked in fixed line, IT and mobile. Contact aj@alasdairjeffrey.co.uk

 

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