Internet Cafe Price War

Computer Shop / Internet Cafe, one of the in demand business in the Philippines right now you can find it near schools, church, malls or even in a subdivision or in a village. Most of them offers Online and Offline gaming this is very influential that even the oldies are playing it. Filipinos are also hooked into facebook their famous games farmville, texas holdem poker etc. That's why in every corner of the street there is an internet cafe even with only 5 or 7 units of computer they are operating .

My Internet Cafe was opened a year and half ago and its 12 units, I owned the place so its advantage that I don't need to pay the monthly rental of the place. My shop offers Internet, Printing, Online and Offline gaming even computer repairs and upgrade. The hourly rate before was 20/hr standard rate so my monthly sales and monthly income is quite above expectation. It so happen that last year started the price war and the usual 20 pesos per hour rate pulled down to 15 pesos per hour the tendency is most customer assume this and expect most shop to follow. At first of course I did not join them, I stick with my services and 20/hour. My daily sales fell and felt the existence of the internet cafe who offers 15/hr rate.

With the advantage of not paying the monthly rental I was force to follow and reduce my hourly rate to 15 pesos. In return I also reduce the usage of my air-condition to offset the expenses. I accept the defeat and follow the reduced hourly rate but it gains me more customer also my loyal patrons are glad so it is still a win-win situation for me and in the end I know this is how the business really are.

God bless my business.