Wednesday, March 24, 2010

How useful are rules and regulations?

I can still remember working in a small developer's office and there were no problems selling houses because demand far exceeded supply in each project. No problems with poor design of houses. Though our company followed proper rules in terms of licence and advertising permits, there were those who could sell without them. Advice and suggestions were given to the public on how to pick developers eg. licensed, etc. etc. But when faced with the lack of supply, who would follow the checklist?

When Proton cars went on sale in the early years, people who booked their cars had to accept cars with accessories (no choice) as well as in different colours. Why? Because demand exceeded supply then. When Perdana first rolled out, people were willing to pay Rm10,000 more to get it!

Similarly, we have prices set for certain food items, especially during festive seasons. Minister would be seen on television checking prices in markets and so on. But when you are actually buying, it is a 'take it or leave it' situation. If what you want is something very important for the occasion, do you mind paying more for it? Eg. for Chinese New Year, roast pork has to be ordered in advance at a premium price. If you did not order, would you mind paying more to get it if you have some guests who really like it?

By the way, advice on how to protect ourselves against car thieves and robberies is only good to a certain extent. With all the extra good locks installed, you need just one person with a gun or just a knife or parang and you would willingly let him have your car! What we need is good enforcement of law and order, otherwise, it is like Russian roulette - a game of chance. We can only hope and pray that it will not happen to us.
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