Summary:
This article explains how the UK introduces a new eco-friendly luxury car hand wash in Glasglow. This new car washing system was designed to attract customers by boasting about its new technology compared to the old car washing method where an automated brush is used. The new method is also better because it says it recycles and retains the traffic film, and helps better protect the surface from acid rain. Since its environmental friendly, the new system includes a filter system to cleanse the used water left over from the car wash, which removes contaminants from the water. The filtered out and unwanted waste is removed safely. It also reuses 75% of its water.
Connection:
The article is connected to transaction analysis because when the company makes money by washing a customers car it’s an operating activity. Since this company focuses on doing car washes by hand, it must pay wages to the multiple employees that works there, which is also considered an operating acitivity. Some of the financial activities for this company could be to pay the water bill, electricity used for the filter system that’s used to clean the water and possibly loaning money from the bank for new investments. The cash that the company earns is recorded into the cash flow statements.
Response:
I think that this new method could turn out to be a great success to the company if they could lower the costs of their services. Sure the new system may be eco-friendly, but a lot of people care more about saving money than the environment. So if management gets around the idea of lowering costs, they could most likely earn more proft and increase environmental awareness. If I were to give suggestions to a company using this car wash method, I would recommend them to charge less, but still earn some profit. By doing this, it would be more appealing to consumers which would increase the demand for the company’s services.
I think it is hard for them to reduce the cost of the car wash because they will have to hire a large amount employees to wash cars. Even if they only pay their employees minimun wages, the wage expense at the end of each month would add up to a huge amount; therefore, it will be hard for them to earn a profit by lower the cost of car wash. They can probably attract customers by washing the car cleaner than a machine can.
ReplyDeleteI do not agree with your point of view of how lowering the cost of prices could attract more consumers to buying in to this new ecofriendly way of getting your car washed. If the cost of getting your car washed by an automated brush is the same as getting your car washed by strangers, I think that consumers will still stick with the automated brush system. Why? Because it’s faster, easier, and gets the job done. When cars are washed by hands, the workers take longer and they usually end up missing some spots and not doing a thorough enough job of cleaning the car.
ReplyDeleteWith that said, I personally think that this world can actually live on for a longer period of time because of all the extraordinary projects countries and companies are coming up with to become more ecofriendly. Sure walking to school and taking the bus are definitely ways of reducing your ecological footprint, but it’s these amusing projects that will get the job done. Washing your car can greatly reduce your ecological footprint? Wow. This might not work, or will it?