Elite Card To Cut Benefits, Double Its Price

[sriracha john]

Elite Card needs better sales strategy

Plans to cut benefits, raise price by 50%

The distributors of the Elite Card have called for the card operator, Thailand Privilege Card Co, to work harder to improve marketing to attract more new customers, especially foreign investors. Soontaree Chanprasit, president of Aktiv Company, a distributor partner of TPC, said that as the government was determined to continue operation of the card programme, more effective strategies were necessary. After three years in operation, the number of Elite Card membership was far behind projections. The restructuring allows the card firm to raise lifetime membership fees by 50% to 1.5 million baht, from one million baht. The new rate will become effective next year with the fee gradually increasing to three million baht within 10 years. TPC also plans to cut some privileges on new members including limit the visits to golf and spa service at 24 visits per year, instead of unlimited use. As of Sept 30, the number of membership was 2,320 from 56 countries, with executives comprising 39%, entrepreneurs 27%, investors 25%, professionals 7% and retired persons 2%. Korea accounts for the most with 31% of total members, followed by Japan with 16%, Europe (excluding the UK) with 12%, England with 7%, ASEAN with 6%, America with 12% and others with 12%. New members in the first nine months of this year totalled 348, compared with 700 who applied in 2006.

Continued here:

http://www.bangkokpost.com/Business/08Oct2007_biz36.php

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After three years in operation, the number of Elite Card membership was far behind projections.

Not sure they are that far behind, as 2,320 members (unstated how many of those were paid for) is not that "far behind" their projection of 1,000,000 members (all paid for).

*edit* Thread title should read increase its price 50%.

Edited October 8, 2007 by sriracha john

[cclub75]

Not sure they are that far behind, as 2,320 members (unstated how many of those were paid for) is not that "far behind" their projection of 1,000,000 members (all paid for).

On the contrary, we could say that they... are on tracks !

It's just a matter of time. A few dozen... of years, probably.

As for for the 24 visits per year to the spa, instead of unlimited... oh la la la that hurts.

[taxexile]

The restructuring allows the card firm to raise lifetime membership fees by 50% to 1.5 million baht, from one million baht. The new rate will become effective next year with the fee gradually increasing to three million baht within 10 years.

that'll have the card flying off the shelves like sh1t off a shovel.

brilliant marketing ploy.

[Bkkboet]

Thai Economics 101 - Want more customers? Increase price and reduce benefits.

[Jingthing]

Thai Economics 101 - Want more customers? Increase price and reduce benefits.

I supposed they hired the brilliant folks from Thailand wine taxation to come up with this new plan.

[cdnvic]

Probably the same geniuses that decided to raise airfares to improve Thai Airways' load factors.

Edited October 8, 2007 by cdnvic

[PadThaiGuy]

This approach defies logic.

Strange.

[Aussietraveller]

Unbelievable Thailand

You have a product that you cannot sell.

What to do?

Reduce the appeal of the product and raise the price by 50%.

Not only that, organise to triple the price over the next 10 years.

What idiot thought that one up?

[soundman]

You're all missing the point.

Marketing in Thailand 101:

It doesn't matter what product you are selling - if we say it is good value therefore it must be because we wouldn't lie.

Then we select a price bracket that will fit our plan & then proceed to work out how to fit a square peg into a round hole with our product then baffle the target audience with feel good advertising and expect the queue's to be lining up.

As always, if you are loosing customers, raise the price so those left cover any shortfall. No thought as to why you may be loosing customers in the first place.....

The only problem with this theory is that people with a million in loose change aren't usually gullible.

Soundman.

[plasticpig]

I Still think its a good deal.

Sorry been drinking again

[A_Traveller]

So are we to take it that those of a Celtic persuasion were unenamoured of this project unlike the Anglo/Saxons? {UK .. English}

Regards

PS Breathtaking marketing strategy

[kmart]

More hilarity from the Ministry Of Surrealism

[Pattaya46]

Not sure they are that far behind, as 2,320 members (unstated how many of those were paid for) is not that "far behind" their projection of 1,000,000 members (all paid for).

Please stop with that. Always and always the same stupid comment.

I remind you that the "1,000,000 members" objective was with the initial program card : Possibility for the member to OWN LAND and/or HOUSE !

As soon as this option dispapeared (no legal solution), they annonced that their objectif would be reduced by 50 or 100.

We are not today so far of the 10,000 members and this objective can yet be reached.

Pattaya46

[PeaceBlondie]

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

[soundman]

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

Why not just come to Thailand, dump all your money in a special donation receptacle at the airport, turn around and fly home?

[kmart]

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

Why not just come to Thailand, dump all your money in a special donation receptacle at the airport, turn around and fly home?

You need your own Ministry!

[mrbojangles]

Not sure they are that far behind, as 2,320 members (unstated how many of those were paid for) is not that "far behind" their projection of 1,000,000 members (all paid for).

Please stop with that. Always and always the same stupid comment.

I remind you that the "1,000,000 members" objective was with the initial program card : Possibility for the member to OWN LAND and/or HOUSE !

As soon as this option dispapeared (no legal solution), they annonced that their objectif would be reduced by 50 or 100.

We are not today so far of the 10,000 members and this objective can yet be reached.

Pattaya46

So 2,320 members isn't that far off the objective of 10,000 members

If i was to only achieve 25% of my targets, i'd be given the sack

[LeungKen]

Has anybody out there in TV land actually met anyone admiting to owning an elite card or is just an urban myth ?

[Jingthing]

If you buy this new product at this new price, you really are especially ... touched.

[xbusman]

I keep thinking of what a great business this could have been.

Its not much more expense than a call center really.

So we plan on 5000 members at 1M each, that comes out to.... 5,000,000,000,000 baht. Christ almighty.

Take out a capitalization loan from the government at say 3% and put it in interest bearing accounts at say 7%. The trust fund will net out 4% on 5 billion. Thats about 200 million a year or a budget of about 16 million a month.

So we get five cars and drivers, one call center with about 30 employees, main office with staff about 20 all told. That comes out to a monthly expense of about 1 million baht. Then we pay golf fees, immigration bribes, spa fees, a few bar fines, with 5000 members I doubt you would ever have more than 1000 here at a time. So you could essentially spend around 150,000 baht per month average per visitor. Not even the Koreans can burn that many golf rounds or bar fines here (close but not for an extended amount of time).

So we pay down the trust fund over 20 years, improve services, and it would make an absolute killing. Talk about the ultimate billionaire boys club. Thaksin had this thing exactly right, its a shame about what it turned out to be. Give a great idea to government and watch the disaster in slow motion.

[sriracha john]

Not sure they are that far behind, as 2,320 members (unstated how many of those were paid for) is not that "far behind" their projection of 1,000,000 members (all paid for).

Please stop with that. Always and always the same stupid comment.

I remind you that the "1,000,000 members" objective was with the initial program card : Possibility for the member to OWN LAND and/or HOUSE !

As soon as this option dispapeared (no legal solution), they annonced that their objectif would be reduced by 50 or 100.

We are not today so far of the 10,000 members and this objective can yet be reached.

Pattaya46

I can only presume you're speaking of Thaksin when you say stupid comment because:

1. It was his stated projection and not mine.

2. Saying such derogatory insults to another TV member would be considered flaming.

3. By your stating "We" in your last sentence, you are a former disgruntled employee of his.

Edited October 8, 2007 by sriracha john

[xyborg]

<br />

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

<br /><br />Why not just come to Thailand, dump all your money in a special donation receptacle at the airport, turn around and fly home? <img src="style_emoticons/default/laugh.gif" style="vertical-align:middle" emoid="" border="0" alt="laugh.gif" /><br />

<br /><br /><br />

Or just send straight from your bank account in Farangland and save yourself the trip??

[ZukiSuzuki]

Does this thing offer any real benefits at all aside from a limited number of visits to the spa and golf course?

Not a great deal, i have use of one (through my company) and the only thing i use it for besides using it to entertain clients is the express immigration at the airport. I have an immigration officer that meets me directly off the plane and i am processed straight away.

[Artisi]

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

I would think, even if they made it free to all without any benefits, they still wouldn't get their 1 000 000 customers

[kankaroo]

Well then, why not raise the price to ten million baht, and eliminate all the benefits?

Genius ! The Elite card team need a person like you

Seriously though, what goes through these peoples minds when they are in their "think tank" (no sniggering now). I can picture the scene : men and women sitting around a large oval table all thinking about what they have just eaten, and more importantly, what they are about to eat. Everybody at the meeting is bored as they have all been there for at least 30 mins. THEN, someone stands up and says, "I HAVE THE ANSWER, FARANG ARE ALL REALLY RICH, 3 MILLION IS LIKE 5 BAHT TO THEM, THEY WON'T EVEN NOTICE WHEN WE CUT THE SERVICE AS WE WILL DO IT OVER TIME", or something.

Sometimes I wish I had the ability to turn my brain off like some Thais can do. Seriously, sometimes (not in this case though) mai kit mak = dee kwaa

[Cobalt60]

Well I am convinced, where do I get one ?

[ZukiSuzuki]

"I HAVE THE ANSWER, FARANG ARE ALL REALLY RICH, 3 MILLION IS LIKE 5 BAHT TO THEM, THEY WON'T EVEN NOTICE WHEN WE CUT THE SERVICE AS WE WILL DO IT OVER TIME", or something.

I think you will find that the service was primarily aimed at the Asian business traveler who are generaly viewed as being more affluent than the average farang here.

[kankaroo]

"I HAVE THE ANSWER, FARANG ARE ALL REALLY RICH, 3 MILLION IS LIKE 5 BAHT TO THEM, THEY WON'T EVEN NOTICE WHEN WE CUT THE SERVICE AS WE WILL DO IT OVER TIME", or something.

I think you will find that the service was primarily aimed at the Asian business traveler who are generaly viewed as being more affluent than the average farang here.

And generally viewed as more gullible also by the looks of things.

Edited October 8, 2007 by kankaroo

[ZukiSuzuki]

"I HAVE THE ANSWER, FARANG ARE ALL REALLY RICH, 3 MILLION IS LIKE 5 BAHT TO THEM, THEY WON'T EVEN NOTICE WHEN WE CUT THE SERVICE AS WE WILL DO IT OVER TIME", or something.

I think you will find that the service was primarily aimed at the Asian business traveler who are generaly viewed as being more affluent than the average farang here.

And generally viewed as more gullible also by the looks of things.

I would'nt say more gullibe, but certainly more likely to spend much more money on luxury goods and sevices, be it clothes, cars, accomodation, entertainment, travel etc.

[soundman]

"I HAVE THE ANSWER, FARANG ARE ALL REALLY RICH, 3 MILLION IS LIKE 5 BAHT TO THEM, THEY WON'T EVEN NOTICE WHEN WE CUT THE SERVICE AS WE WILL DO IT OVER TIME", or something.

I think you will find that the service was primarily aimed at the Asian business traveler who are generaly viewed as being more affluent than the average farang here.

And generally viewed as more gullible also by the looks of things.

I would'nt say more gullibe, but certainly more likely to spend much more money on luxury goods and sevices, be it clothes, cars, accomodation, entertainment, travel etc.

And, from some stories that I have heard, most likely to underpay people working in the service industry, after an initial figure has been agreed upon.

Edited October 8, 2007 by soundman