Ferries: A Niche of One’s Own

by Matt McCleery

Our pricing structure is set according to what we perceive the market is prepared to pay, as opposed to our operating costs.” I read the words, attributed to Olive Glass, Marketing Director of Red Funnel Ferries, on a recent flight to London, and exhaled the word “Amen!” with such evangelical verve that the fearful woman sitting next to me moved one seat further away.

The woman, who had defensively lowered the arm rest, could not possibly understand how sweet the thought of pricing control is to someone in the bulk shipping business. An industry in which vessel operators and shipyards value their goods and services using the self-defeating “cost minus” pricing structure – a business in which charterers and owners swarm around “last done” like moths on lightbulb, affirming the three rules of bulk shipping; price, price and price. She could not empathize with an industry whose bankers live and die with every unpredictable tick of the global GDP.

This is only an excerpt of Ferries: A Niche of One’s Own

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.