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.