Dear readers, it has really been some time since I had my favorite Bak Chor Mee from a stall in a neighbourhood estate which I frequent.
The stall was closed for the few times which I have been there in the recent weeks and I believe it could be due to Chinese New Year though there was no notice for the closure at the stall.
So I was quite happy to find the stall open yesterday and the queue was long. But I did notice that there was a change: prices have increased.
Previously, there were only two options in the Price Menu: $4 (Small) and $5 (Big).
Now, based on the updated price menu, there were 3 options: $4 (Small), $5 (Medium) and $6 (Big).
I was quite surprised that the Bak Chor Mee stall increases prices after all, as its business is always good and even if the stall faces some cost pressures, the long queues at the stall should alleviate some of these cost pressures.
I usually take the large option and hence the price increase to me was 20%! Could this 3 pricing tier be also such that one can take that there is no price increase for the “Small” option since price now is still $4 while another new price tier called the “Medium” was introduced? And the only price increase is for customers who choose the “Big” option and for which the price increase is 20%? But I believe for customers who always go for the “Small” option, they are likely to compare portion of their meals and they will feel the difference if the portion has shrunk.
However, I believe due to its simply excellent business, the stall owner also has the confidence to increase its prices. Just imagine, given the 20% price increase, even if 5% of the customers stop patronizing the stall, it will still be profits for the Bak Chor Mee.
The Bak Chor Mee stall is not the first stall that I have noted, which increases it prices during this Chinese New Year period. I believe this could be psychological as customers may be in a happier mood during this festive season and may not mind starting to pay more. Also timing the price increase during the Chinese New Year period where food prices are higher due to Chinese New Year surcharge could be another strategic move too!