Mercafull and the Price of Trust

Domestic gas refilling went from 24 to 49.99 dollars without public explanation. Specialists in marketing and business management warn about the damage to the Company’s reputation.

Mercafull, the company in charge of commercializing gas for domestic consumption in Cuba from abroad, has generated deep discontent among its customers after raising the price of refilling gas cylinders from 24 to 49.99 dollars — more than double — without a public explanation justifying the measure.

The service works as follows: a customer buys the cylinder abroad for 89 and cents dollars, a price that includes delivery of the container in ownership.

The subsequent refill, once the liquid is consumed, was initially announced at 19 dollars with cents, although in practice 23 or almost 24 dollars were already being charged. Now, that refill costs 49.99 dollars.

The company set up delivery points in different provinces and territories, and everything was proceeding normally until a few days ago, when the increase occurred.

What the specialists say

Consulted about the case, specialists in marketing and business management agree that the measure not only affects the consumer’s pocket but breaks a basic principle of the commercial relationship: trust.

From marketing

The initial promotion functioned as a value promise. The customer invested in a container that is now their property and became tied to a single supplier. Raising the refill afterward, without public justification, is perceived as a betrayal, not as a price adjustment.

Experts also note that the difference between the announced price (19 dollars) and the charged one (23-24 dollars) already constituted a warning sign: imprecise advertising that sowed doubts. The subsequent jump confirms them.

The model applied responds to a logic of capture price followed by exploitation price: entry is subsidized to attract customers, and once the customer has already invested and has no alternative, the price is raised. In regulated markets this practice is considered unfair; in free markets, it generates rejection and boycott.

The effect on brand value is severe: Mercafull not only loses current customers but future credibility. In a market where reputation is the main asset, this is especially serious.

From business management

The analysis is equally critical. There was no corporate communication: it was not explained why the price rises (cost of gas abroad? transportation? exchange rate? margin?). Without transparency, the customer interprets the worst.

A 108 percent increase in a basic necessity product, in a market without real competition, exposes the company to:

• Legal challenges regarding consumer protection.

• Political and media scrutiny.

• Loss of social legitimacy.

Specialists warn that the directors who approved this measure — if they did not measure the impact on reputation — committed a strategic management error. As the affected customers themselves point out, the first ones disrespected are the company’s directors, because they are mortgaging its sustainability.

Alternatives that existed

Experts list several avenues that were not applied:

• Communicating in advance and explaining the causes of the increase.

• Staggering the increase over time.

• Maintaining the refill price for founding customers.

• Offering compensation.

• Negotiating with suppliers before passing the entire cost on to the customer.