Old Chang Kee

[Ben]

It remains to be seen how this price increase can mitigate the pressure on its margins as i've mentioned in an earlier post. I do hope the effect is positive since a 10 to 20 cents absolute price rise may not be very significant to consumers in general. Percentage wise, it's a different story then.

OCK probably feel that 10 to 20 cents increase in prices is something that the general public can accept. This is probably true for OCK's products. People don't buy their snacks every day, it is more like once in a while when they pass by the shop and have the urge to munch something. So the increase in prices is not have going to significantly change the behaviour of most of their consumers. But to OCK, it will be a big boost to their top line, and I am sure their bottom line as well.

Can you all remember when the price of coffee and tea at kopi thiam and hawker centre increase by 10 cents, it created a big uproar. That is beacuse most people will go for a cup of kopi or tei EVERYDAY, and the increase will hit them EVERYDAY and make them feel the pinch everytime they ordered a cup of kopi or tei. The same logic goes to price increase for public transport.

Not vested in OCK.