Posts: 1001
Joined: Sun Aug 22, 1999 8:34 am

If SAS Sold Paint In Norway

Mon Apr 08, 2002 7:14 pm


First a reprise of how ordinary hardware stores sell

Customer: Hi. How much is your paint?

Clerk: We have regular quality paint for NKR18 a litre
and premium paint for
NKR25. How many litres would you like?

Customer: Five litres of regular paint please.

Clerk: Great. That will be 400kr inkl moms

Now, imagine you are buying paint from SAS. First
you try reaching them
by phone to ask if they have paint. All you get is
music on hold, so you
drive to the nearest SAS store.

Customer: Hi. How much is your paint?

Clerk: Well, sir, that all depends on quite a lot of

Customer: Can you give me a guess? Is there an
average price?
Clerk: Our lowest price is NKR12 a litre, and we have
60 different prices up
to NKR200 a litre.

Customer: What's the difference in the paint?

Clerk: Oh, there isn't any difference; it's all the
same paint.

Customer: Well, then I'd like some of that NKR12

Clerk: When do you intend to use the paint?

Customer: I want to paint tomorrow. It's my day off.

Clerk: Sir, the paint for tomorrow is the NKR200

Customer: When would I have to paint to get the NKR12

Clerk: You would have to start very late at night in
about 3 weeks. But you
will have to agree to start painting before Friday
of that week and
painting until at least Sunday.

Customer: You've got to be kidding!

Clerk: I'll check and see if we have any paint

Customer: You have shelves FULL of paint! I can see

Clerk: But it doesn't mean that we have paint
available. We sell only a
certain number of litres on any given weekend. Oh,
and by the way, the
per litre just went to NKR16. We don't have any more
NKR12 paint.

Customer: The price went up as we were talking?

Clerk: Yes, sir. We change the prices and rules
hundreds of times a day and
since you haven't actually walked out of the store
with your paint yet, we
just decided to change. I suggest you purchase your
paint as soon as
possible. How many litres do you want?

Customer: Well, maybe five litres. Make that six, so
I'll have enough.

Clerk: Oh no, sir, you can't do that. If you buy
paint and don't use it,
there are penalties and possible confiscation of the
paint you already

Customer: WHAT?

Clerk: We can sell enough paint to do your kitchen,
bathroom, hall and
bedroom, but if you stop painting before you do the
bedroom, you will lose
your remaining litres of paint.

Customer: What does it matter whether I use all the
paint? I already paid
you for it!

Clerk: We make plans based upon the idea that all
our paint is used, every
drop. If you don't, it causes us all sorts of

Customer: This is crazy!! I suppose something
terrible happens if I don't
keep painting until after Saturday night!

Clerk: Oh yes! Every litre you bought automatically
becomes the NKR200 paint.

Customer: But what are all these "Paint on sale from
NKR10 a litre" signs?

Clerk: Well, that's for our budget paint. It only
comes in half-litres. One
NKR5 half-litre will do half a room. The second
half-litre to complete the
room is NKR20. None of the cans have labels, some are
empty and there are no
refunds, even on the empty cans.

Customer: To hell with this! I'll buy what I need
somewhere else!

Clerk: I don't think so, sir. You may be able to buy
paint for your
and bedrooms, and your kitchen and dining room from
someone else, but you
won't be able to paint your connecting hall and
stairway from anyone but
And I should point out sir, that if you paint in
only one direction, it
be NKR300 a litre.

Customer: I thought your most expensive paint was

Clerk: That's if you paint around the room to the
point at which you
started. A hallway is different.

Customer: And if I buy NKR200 paint for the hall, but
only paint in one
direction, you'll confiscate the remaining paint.

Clerk: No, we'll charge you an extra use fee plus
the difference on your
next litre of paint. But I believe you're getting it
now, sir.

Customer: You're insane!

Clerk: But we're now THIS COUNTRY'S only paint
supplier! And don't go
looking for bargains! Thanks for painting with
Posts: 2126
Joined: Tue May 18, 1999 1:28 am

RE: If SAS Sold Paint In Norway

Mon Apr 08, 2002 7:25 pm

Nice one! I suppose thats how it is after the buyout of Braathens.

Posts: 1001
Joined: Sun Aug 22, 1999 8:34 am

RE: If SAS Sold Paint In Norway

Mon Apr 08, 2002 8:58 pm

pretty much like this - someone would say!
User avatar
Posts: 1548
Joined: Fri Mar 15, 2002 6:42 am

RE: If SAS Sold Paint In Norway

Mon Apr 08, 2002 9:34 pm

Fantastic! I love it!

It was interesting at LGW on Saturday listening to a DL ticket agent trying to explain to a passenger why if one of their friends had no showed that they still couldn't have the seat that was booked!
Posts: 3138
Joined: Sat Mar 18, 2000 9:55 am

RE: If SAS Sold Paint In Norway

Mon Apr 08, 2002 11:10 pm

its called revenue yield managment. And i love it. Otherwise I couldn't get cheap tickets. Thats right. Becuase they fleece the hurried buisness man i get cheap seats in the back by buying in advance.
When in doubt, one B pump off
User avatar
Posts: 1688
Joined: Tue Feb 01, 2000 12:24 am

RE: If SAS Sold Paint In Norway

Tue Apr 09, 2002 12:00 am

We can laugh, but if it hadn't been for revenue management we wouldn't GET the good deals we do today.
Sometimes you will see strange side effects, but in principle it works to our benefit. 'Us' being the leisure traveller ..

- I am LN-MOW, and I approve this message.
Posts: 676
Joined: Thu Mar 15, 2001 3:25 pm

RE: If SAS Sold Paint In Norway

Tue Apr 09, 2002 3:05 pm

One important difference between paint and a seat on a flight. If nobody buys the paint today, it is still on the shelf to be purchased at a later time. Its revenue potential is still the same. If nobody buys a particular seat on a certain flight, once the plane departs, it is gone! Revenue realised=0. So yes, airlines have to use different rates and rules to try to maximize the revenue that can be achieved on that flight. The rest is Economics 101 (which I never took).
"So many planes; so little time..."
Posts: 656
Joined: Thu Aug 10, 2000 4:33 am

RE: Heisan

Wed Apr 10, 2002 4:17 am

Stupid (and too long) story, methinks.
Sorry about that.

- caravelle
Trains and boats and planes....
Posts: 1001
Joined: Sun Aug 22, 1999 8:34 am

To Caravelle

Fri Apr 12, 2002 11:35 pm

What does "methinks" means??

Sorry to hear that you find it hard to read so much....that's why I added some space between the lines in order not to make it look so hard to read.

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