47. “Because of declining profits, we mustreduce operating expenses at Movies Galore’s ten movie-rental stores.Raising prices is not a good option, since we are famousfor our low prices. Instead, we should reduce our operating hours. Lastmonth our store in downtown Marston reduced its hours by closing at 6:00p.m. rather than 9:00 p.m. and reduced its overall inventory by nolonger stocking any DVD released more than five years ago. Since we havereceived very few customer complaints about these new policies, weshould now adopt them at all other Movies Galore stores as our beststrategies for improving profits.
The argument claims that inorder to improve profits of the chain movie-rental store, they should reducethe opening time and no longer stock any DVD released more than 5 years ago.The owner use the fact that the store in downtown Marston that reduce itsopening time which have not receive complaints as an evidence to prove that heshould do so. However, there are some fallacies in it, which make it notconvincing.
First of all, the owner ofthe store refuses to raise the price because he thinks that they are famous fortheir low prices. However, the owner did not give out any compare between theprice of his own store and other’s. Then it cannot be persuading, for maybe theprice of his store are so low that even if he raise the price two time as it isnow, the customs would not think it is high and it is still much cheaper thanany other stores. In that case, the rising of price is a efficient way and a availableway to improve profits of the store, which is just opposite as the owner think.
And also, the owner arguesthat because there is no complaint from customers about the changing of closetime from 9:00 p.m. into 6:00 p.m. of the store in downtown Marston. There ispossibility that although the customers are not happy, they did not complainabout it. They may just want to complain about it when they walk to it in achill and windy day and find it has closed and no one to complain to. They mayeven refuse to go to that shop any more because of that abhorrent experience.In that case, the lack of complaints from customer do not equal to thesatisfying of every customer.
Even if the owner is correctthat the raising of price cannot help and there is no customer who want to complainabout the change of the opening time, he also wrongly use the evidence of thestore in downtown Marston to conclude that the shortening of opening time is appropriatefor all the stores. Maybe people in downtown Marston all just work there andneed to get back to home after work, which is a little far from the downtown.Then there will not be much people in downtown Marston and the closing of thestore at 6:00 p.m. will absolutely have little affection. But for those thatlocated at an area that people live, most customers may come to rent DVD afterwork in order that they can watch it at night and the closing of it at 6:00p.m. will cause great inconvenient to customers, and even more, cause theprofit droop drastically, just opposite as the owner expect.
In conclusion, there aresome flaws in the memorandum of the owner of the chain, which make the argumentfar from convincing. Without ruling all these fallacy, the conclusion of the argumentcan never be persuasive |