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    « We Don't Accept ASAP | Main | FDFC versus FIFO »

    January 08, 2007

    One Egg or Two?

    Elmer Wheeler, a famous sales consultant, was hired to help a pharmacy improve their profits.  At the time it was common for pharmacies to serve food.  One of the most popular items served was malted milkshakes.  Wheeler observed that several customers were ordering malted milkshakes with an egg in it.  Even though this was extra the pharmacy wasn't charging any more.  Wheeler advised the pharmacy not only that they charge extra "per egg", but servers were trained to ask customers whether they wanted "one egg or two".  Here's the genius in this:
    1. Most customers did not order eggs, but when they did it ate into profits
    2. Wheelers question caused the customers to make a choice and they almost always picked one (ordering no eggs was an option, just not stated)

    What does this have to do with AEC reprographics?  I believe that similar strategies can be used to condition customers.  It can also be used to set expectations that are easier to manage and perform to.  For example:  "Would you like that job delivered within our standard 8 hour turnaround time or for an extra $1 we can deliver it in 4 hours?"

    One dollar isn't very much but it is enough to cause somebody to make a decision between two choices.  Not many people are going to complain about a $1, and you'd be surprised how many people would choose 8 hours.  If 10% of the jobs that were traditionally done ASAP (or some form of ASAP) suddenly gave you 8 hours to deliver the jobs would that help your bottom line?

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    Comments

    Michael A. Duff

    A very good analogy John,
    Tell you what; I don’t want fries with that burger
    But I would like 2 eggs in my malt.
    Duff

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