I don’t know if there is any connection between the election being over, and prices rising, but rising they appear to be. Just a few examples:
Old Town White Coffee’s set breakfast – my favourite choice is suddenly up 25% in price.
Bread History’s cakes seem to have suddenly risen by at least a similar percentage.
And while not exactly a price rise, Telekom Malaysia has changed the billing sequence so that the present bill is 50% more than usual – and thus they have exacted payment in advance for their service, and are holding our money.
When establishments increase their prices so much, I may not cease to be a customer, but usually instead of being a regular customer I only purchase infrequently. As far as I am concerned, I have a very elastic demand, so their income from me drops dramatically. Several years ago I used to be a regular at Old Town for coffee, but they raised their price a lot, and since then it was really only their set breakfasts that were attractive – but now they have raised this price, I am not sure anymore.
There is so much competition in Penang in the food and beverage industry, I wouldn’t have thought that the loss of business through dramatic price rises would actually lead to an increased profit. Coffee Island, of which I was a customer until their dramatic prices rises of February 2012, had been extremely popular. Other factors may also have been involved, but their business quickly collapsed thereafter. Then it became a moderately busy hawker centre for a while, and is now a Thai restaurant / hawker centre. The business they lost never returned.
Well, there is always somewhere new to try, even in such a small island such as this. And that’s what I do. I move on to somewhere else in response.