Friday, September 28, 2012

Insatiable Greed Pt 2

Before reading this you may want to read my 'Insatiable Greed' blog, which is one article before this one under opinion.

I got a reply to my email I wrote from Trade Me:

We appreciate you getting in touch to provide feedback on our new fees structure. I'm sorry you feel these are too high, Raymond. Our success fees for general items have not increased since February 2011 and before making this increase we did a lot of research to ensure we were being fair, good value, and responsible.

One of the primary things we took into consideration was the increase in visits to Trade Me (up 18% in the past year). We’ve been investing a lot to ensure Trade Me is represented strongly across the growing range of mobile platforms. We now have five mobile sites and applications for interacting with Trade Me, and mobile visits now make up over 25% of total visits to Trade Me.

We think we're providing a great service to our members and a fair price.

I have passed your feedback on to the site suggestions team too. We always appreciate our members' input, it's what helps keep Trade Me a great place for buying and selling!

My final response: 

I'm sure my comments won't be changing anything, however, your reason for the increase makes no sense.

Surely increase in traffic means increase in business, evidenced by increasing profits. Those extra profits would cover the cost of extra traffic. That is how business works. There are only two reasons to put your prices up. One, your profits are down (not true in this case). Or two, because you have a dominant market position and therefore know you can get away with it. It doesn't matter when you last put your prices up, clearly you don't need to - and that is what is so morally wrong here. 

You were charging a fair price when you had an 8.4% jump in its annual profit to $75.6 million. Now Trade Me has decided to cream some more profit off the hapless NZ public, like happens so often in 'God's Own".

The extra cost is not big per se but add up increases in so many areas of business in NZ and it bites. All I ask is that you include social responsibility in your business decisions. Something sadly lacking in modern

The standard of living throughout history has always been low for the working man. In the late nineteenth century, businessmen in Britain started caring about the worker and giving them something back. That led to the uplifting of living standards of the working man that that spread around the world and we still enjoy today. Greed has got business in its teeth now, and business with morality has gone. The big crash in the financial world a few years back was a warning of what insatiable greed leads to. Did anyone learn the lesson?

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