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The Premiership Cake Shop


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Let's pretend for a second that Premiership speedway is a cake company, and you are the director.

 

We've been making cakes now for over 60 years and supplying them to customers all over the country. Unfortunately, our cakes have been through a rough patch and we now don't have as much money to invest in our cakes as we once did. As a result of this, the decision has been taken to reduce the cost of the cakes. In order to achieve this we are now using a slightly lesser quality flour but we are keeping the price of the cakes the same.

 

The new cakes have been out there for almost a year now and the sales have dropped further... the customers do not like the changes we have made to the cakes. The customers tell us that the quality of the cake is not good enough. They feel that for the price they are paying, the quality of the cake simply is not good enough. We now don't have as much money to invest in our cakes as we once did. As a result of this, the decision has been made to reduce the cost of the cakes. In order to achieve this we are now using a much lesser quality flour, and we're reducing the amount of icing we use, but we are now increasing the price of our cakes.

 

The newer cakes have been out there for almost a year now and the sales have... dropped much further. The customers do not like the changes we have made to the cakes. The customers tell us that the quality of the cakes have deteriorated drastically from what they once knew and loved. The price of the cakes are simply far too high for the quality they are offering.

 

Director 1 says:

 

"The quality of the cakes must be improved. We must invest in using the best flour, the icing must be plentiful, and the customer should feel like they are receiving a premium product for their money. Once we've made these changes, we must get out there and inform all our existing and prospective customers of the quality of our cakes. We must show them that the money we are asking is worth every bite of our delicious cakes. This will bring the customers back."

 

Director 2 says:

 

"The reduction of customers is nothing to do with the quality of our cakes. We must cut our costs further. We must reduce the quality of our flour, cut back further on the icing and reduce our packaging. We need to make these cakes as cheap as we possibly can. Nothing we can do will increase the customer base, we must simply continue to reduce costs and keep hold of as many of the few remaining customers we have."

 

Which director do you think will save the Premiership cake company?

Edited by BurntFaceMan
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The second director.

 

There are a lot of casual followers in speedway and to keep them constantly coming is a challenge.

 

They don't care about rules or rider strength. They care about how cold it is on a night out, if they can afford to take the kids or how the facilities and food are.

 

Die hards will always go and if they don't, they wont.

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I think they would be better getting all the other Companies who compete in the same market place to allow them to use their cakes and pass them off to the public as if they were their own..😀

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or maybe go down the toblerone route, less heats (chocolate) for the same money

 

Think you've nailed it with that

 

Not only is it less heats, the gap between them is bigger so from the outside it looks the same as it's always been.

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Perhaps we've been selling our cakes to the wrong customers, perhaps if we make our cakes even cheaper, we'll open up a new cake market? Perhaps people that don't normally eat cakes because they can't afford cakes, will now try cakes, there's millions on the bread; I mean cake line, that will now be able to afford our cakes!!

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Thought the price of the cakes was not being reduced, just the manufacturing costs. Therefore the market is unlikely to see the latest version of cakes attractive for people to try.

 

Price of the cakes is the same but the quality of the ingredients is being reduced. It is possible to spend less on the ingredients and get a great product but it will always depend on marketing. The cakes sell-by date is the biggest concern if you use cheaper ingredients. Younger people seem to have gone off cakes so we are relying on the older generations appetite! How do we get young people to try the cakes?

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