After a long time, had a flat tire today. Anyways went to a shop near Jubilee Hills checkpost. While he was fixing it I was wondering if he should have differential rates for the front and the back tyres. Back tyres are definitely more labour, while for front tyre you dont have to take out the wheel. He was quite efficient and it looked like a relatively simple job. Bt he charged Rs 20 for it, was a bit surprised so asked if its really Rs 20. That fellow was kind of little arrogant he shot back saying "why did I take more ?".
"No just that I didnt have a flat tyre for a long time, dont know what are teh prevailing rates"
"I am going to increase it further in a months time"
That was a real surprise, why did he react like that ?. I am a customer he makes his living from people like me and yet. That got me thinking, jobs like this are kind of unique. They can afford to be discourteous, they dont ahve to put on a smile. Assuming that it is the only puncture repair shop in a 1 km radius and that too in prominent location, People will remember that shop and even if he will charge you more or be arrogant, still you will have to go there, you dont ahve an option, I dont expect myself to drag a flat tyre for another mile for a smile !. I am coming back to you mate if I am nearby in a similar situation.
So why stick to Rs 20 he can increase it further, what would be the tipping point for a flat tyre ? that would keep off competition. Profit being so high that other people would want to open up puncture repair shops and after that, in the process drive down the price again cause of competition. That requires further research and data but nevertheless his job status became kind of interesting after I realised this.
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