September 2010

For the month of September my strategy worked once again and I received a total net income increase of $230,148,502. The main strategy was to stay ahead of the competition but still allowing the consumer to think that my product was better than the rest but in reality it was the same. Cash Money for me!!! Thank You Very Much America....now only if this were real.

The pricing strategy that was used was to stay ahead of the competition but not to far ahead, thus allowing to stay in competition but not outrageously higher than the rest. As the simulation went on I also kept pressing forward with higher prices, knowing that the rental market was there and it would support my increases, because quite frankly they had to. When you go to a city that is not your own your are basically forced to get a rental car unless you are in NYC where the public transportation is so great. This increase in price was to ultimately receive the best monthly net income, but that could only be achieved if the fleet was in the 90%-100% range of fully rented out. Without vehicles going out the front gate, net sales would not increase. I payed special attention to these two segments of the simulation to find the best overall profit. These two segments were interesting to watch as the weekday market seemed to always be in higher demand than the weekend. That seems backwards to my theory of the weekend traveler needing a vehicle. It is apparent that the businessman is who is in most demand for rentals, not the family man. The businessman was more adaptable to change where he/she may have the ability to write off the expense and on the other side the family man would find other means if the price was to high, hence the penny pincher. After realizing this, my target was the weekday businessman where my prices were nearly $10 higher than during the weekend. The market was able to sustain this gamble and rewarded me with a substantial net gain, but seemed to be the same for me throughout each market. All three markets were acceptable of this gamble, and no loss was ever recorded in any market. I tried to focus on Orlando for the June and July months but they were less accepting of the steep increase where I thought a mass amount of people would be traveling Disney World. My net income remained around $30,000,000 but saw a decrease in fleet where it dipped to only 82% on the weekdays. Following this dip I had to allow the competition catch up to my prices before I made another increase. It only took one month for the competition to catch up but was still a disappointment from the sharp increase in all segments from months past. All in all a steady increase in prices is the best strategy rather than getting greedy. One month's greed kept me from winning this competition and stumbling into the 5th position.

August 2010

August showed a net monthly gain of 31,086,723 and outselling the competition by 45,729 in unit sales. The weekday rates are less than a dollar above the competition, and the weekend rates are only .39 higher than the competition. My weekday fleet is now only at 81% capacity but the weekend remains the same at 93%. Next month weekday sales will see a small increase of $.50 and weekend increase of $1.00.

July 2010

The strategy as stated in my last blog was a success. The market came back and caught up with my prices. I am only $.08 higher than the competition on the weekday prices, and $.10 under the competition for the weekend rates. I was able to also still capture a $30,844,766 net gain for the month of July with leaving the weekday prices stagnant and increasing the weekend prices by $2.00. Next month will see slight increases in both weekend and weekday rental rates to stay in competition.

June 2010

For the month of June, greed got to me. After nearly a year of increased sales with no drop off on customers I sharply raised the prices of both weekday and weekend rates, thinking that families from all over the country would be coming to celebrate the summer break. The weekday rates of Tampa, and Miami were increased by $10 and the weekday rate of Orlando was increased by $12, assuming that there would be more demand in Orlando due to Disney World. On the weekend rates were increased by $10 in Tampa and Miami and again due to Disney World Orlando saw a $14 increase.

Following these gambles I lost 3% of the market share and my weekday capacity came down 14%, weekends only saw a 6% loss but in the big picture I received a net monthly income of $30,864,134. This next month I will leave the weekday rates the same, allowing for the market to catch up to my prices and capturing the market once again, weekends will see a small increase as the market is still demands my product over the competition.

May 2010

May was a great month for sales, with an increase of $6.00 for weekday rentals and $3.00 for weekend rentals. With this bold strategy I was able to receive a net income increase of $25,499,055, all this being said the weekday rentals remained at 100% capacity and the weekends remained the same as the previous month at 97%. Unit sales were 64,722 above the competition. Expect a sharp raise in prices as the school is just getting out and families coming for vacations.

April 2010

It must be that the American public sees the price lower and more acceptable when the price for a rental car ends in .99. For the weekday rentals I once again raised the price of daily rentals by $4.00 across the board in Tampa, Orlando, and Miami. On the weekends the price was also increased by $1.00 still keeping 97% of the fleet sold. For the month of April the company saw a net income increase of $19,521,333 and still significantly ahead of the competition in unit sales. This coming month another increase of rentals for both weekday and weekend vehicles will be exercised.

March 2010

For the month of March the price of weekday rentals increased an additional $2.00 and still was able to fully rent out the entire fleet every day of the week. On the weekends the price was only raised $.99 which allowed for more of the market to come to me by 2% and a total of 97% of the fleet rented on the weekends. I saw a net income gain of $16,100,501 and still ahead of the competition by 69,950 unit sales. Expect yet another rise in prices for the month of April.