Tuesday, April 27, 2010

Entrepreneur: Win-Win Solution


Kopi Tiam
Saw a huge hand written notice on the wall of a typical Malaysian kopi tiam that is located near to my house. “Outside Foods and Drinks are not allowed in here”. I think the kopi tiam owner is fed-up with customers bringing outside foods and drinks to consume in the kopi tiam and in the process depriving the owner of revenues.

An old Hainanese kopi tiam located at Jalan Dang Wangi has a win-win solution. It allows customers to order foods from hawkers at the back of the kopi tiam. However the Hainanese kopi tiam charges its Customer a minimal corkage fee of RM0.30 per plate/bowl of hawker's food consumed within the kopi tiam.

Nasi Lemak
I was “tae pauhing” 2 bunkus of nasi lemak in one of the hot store located on Jalan Imbi, Kuala Lumpur. One of the Customers requested 5 bunkus of nasi lemak and wanted additional sotong in each bunkus. In addition, he wanted to buy sotong only (without rice). The Hawker face turned black and told him rudely that, “If I sell you so much sotong – then I will be left with plenty of rice. How am I to sell rice without sotong?”

A more enterprising businessman would have taken up the Customer’s request with happiness. A win-win action is to sell the Customer more sotong at a higher price to cover any potential losses.

Char Kueh Teoh
Take another example of a char kueh teoh stall at a pasar malam in a small kampong. He used to ask his customers if they want egg or no egg. Egg has a higher profit margin than char kueh teoh. Naturally many customers would declined the egg because the price would then be higher. Some smarter customers would bring their own eggs from home - depriving the char kueh teoh hawker from extra profit.

Several years later – I returned to the same char kueh teoh stall – but I noticed a difference. Now the owner's Son is taking the orders. He asked, “Do you want 1 egg or 2 eggs?”. Most customers when given this choice would be embarassed to decline the egg(s) and would rather settle for a minimum of 1 egg.

My guess is that - a hawker son may not have earned a Master Degree from University Malaya to be an effective businessman. However, an effective entrepreneur is a business person that is able to meet Customers demand on a win-win platform and at a price that is profitable.

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