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Re: “Aussies’ Bad Bet on Pocahontas Causes Shakeup

This looks like a classic case of trying to squeeze too many dollars from each user to keep up with expenses. Users flee the high cost, the company brings on more rate increases. It's a death spiral.

It might be a better idea, especially in hard times, to build a revenue model based on a price point - 24 hours a day - that the users think is a deal. Less money per user = more total revenue from a lot more users.

Promote the heck out of the deal all over the region - what a deal!

And, you can't just change the price and expect everyone to know by osmosis. Most people don't go near that road anymore, so you need to reach out and bring them back.

Also, you might want to get rid of those signs with a price-per-axle calculation for the driver to make. Price their access per car, per trailer, per truck instead. People understand that and don't have to think or calculate axles. Psychologically, those per-axle signs make drivers anxious, make them feel momentarily uncertain about what they'll pay - not good for the user experience.

A low price plus an excellent user experience - the keys to success for this beautiful piece of road.

5 likes, 1 dislike
Posted by Bizcoach on 08/15/2012 at 9:38 AM

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