Subject: When confronted by falling demand, what does a well-run company do?

Date: Mon, 6 Mar 2000 04:20:02 GMT

From: "Boyd Munro" <bmunro@airsafety.com.au >

Question. When confronted by falling demand, what does a well-run company do?

Answer 1. Increase prices.

Answer 2. Strive to increase demand.

Answer 3. Cut costs.

It has now become clear that AOPA's problem is not fuel contamination but a

combination of rising costs and falling demand.

See http://www.airsafety.com.au/a354abgn.htm for a statement by AOPA's General Manager saying "Members should understand that had this not been done, then the Association would have been in a position where it could not longer legally trade and would have had to have been wound up."

The solution AOPA has chosen is number 1, to increase prices.

That might work for bureaucracies whose customers have nowhere else to go.

For any organisation other than a bureaucracy or a monopoly, a problem of falling demand is only made worse by raising prices.

AOPA is not a monopoly and should not be a bureaucracy - so why did it choose this suicidal option?