The Rebel Entrepreneur: Rewriting the Business Rulebook by Jonathan Moules

Author:Jonathan Moules [Moules, Jonathan]
Language: eng
Format: mobi
Publisher: Kogan Page
Published: 2012-07-02T14:00:00+00:00

Warning: you can raise prices too much

Of course it is possible to charge too much for a product. Anyone who has tried to travel around London by black taxi will be more than aware of this. Charming as this form of travel can be, most Londoners shun it because the fare per mile has been pushed up so high. Black cab drivers, who are themselves one-person businesses, and therefore technically entrepreneurs, complain that demand for the product is falling so they need a high price to maintain a viable livelihood. They can also hide behind the fact that black cab fares are highly regulated and controlled by the elected mayor of London. However, it can be argued that price rises for black cabs have gone beyond creating an air of luxury to destroying the market itself.

There may be entrepreneurs behind the wheel on your trip around town, but they may not be rebel entrepreneurs. In April 2010, the cost of an average daytime taxi ride in London rose by 2.7 per cent to £10.67. No doubt the cockney cabbies pointed to the fact that the cost of fuel had risen by 12 per cent in the previous 12 months. Most passengers, on the other hand, would point out that the average UK salary had risen by just 2 per cent. It seems that in this case customers really are voting with their feet. One only has to look at the long queues of black cabs outside Victoria Station in London’s West End for proof of what seems suspiciously like a failing monopoly operator.

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