Qingdao Mobile Toilet Auction
On October 30, 2004, at the auction for the operational rights (naming rights) of urban construction projects in Qingdao, the operational right of the mobile toilet on the east side of Qingdao's Zhanqiao Pier was sold for 200,000 yuan per year to citizen Su Zhengjie, with an operational period of 4 years. Meanwhile, the toilets on the west side of Yucai Middle School and on Taipingjiao No.1 Road received no bids due to their starting prices of 30,000 yuan per year.
Auction Analysis
During this auction, the mobile toilet on the east side of Zhanqiao Pier became the focal point. Its starting price was 45,000 yuan per year, and the final transaction price reached as high as 200,000 yuan per year, showing a significant increase. This result reflects the toilet's advantageous geographical location. As a landmark attraction in Qingdao, Zhanqiao Pier has a large flow of people, creating a high demand for toilets and giving its operational rights considerable commercial value. In contrast, the two toilets on the west side of Yucai Middle School and on Taipingjiao No.1 Road, despite having a relatively low starting price of 30,000 yuan per year, received no bids. This may be because these two toilets are located in areas with relatively low foot traffic and a less vibrant commercial atmosphere, leading potential operators to have a pessimistic outlook on future earnings and believing it would be difficult to recover costs and make a profit through operation.
Su Zhengjie's Business Plan
After acquiring the operational right of the mobile toilet on the east side of Zhanqiao Pier, Su Zhengjie formulated corresponding business strategies. He plans to increase the toilet fee to 5 yuan per person per use, a significant increase compared to the regular toilet fees. At the same time, he intends to set up a rest and service room beside the toilet, charging 10 yuan per person. Su Zhengjie hopes to recover costs by raising toilet fees and adding service items. However, this business strategy also carries certain risks. Increasing the toilet fee may deter some tourists, especially those who are more price-sensitive, thus affecting the toilet's utilization rate. Whether the fees for the rest and service room will be accepted by tourists also depends on the quality of services provided and the actual needs of tourists. If the services lack appeal or the prices are too high, it may be difficult to attract tourists to consume, thereby affecting overall business earnings.
