Fashion On Your Mind

Fixed versus variable

2 years ago by in Business, Sales & Marketing Tagged: , , , ,

About two days back we covered a story The Best of Ali Anani. The idea man is out again with one more amazing presentation Fixed versus variable

The question of fixed versus variable extends to many fields. Fixed opinion versus variable opinion and fixed prices versus variable prices are just two examples. The presentation shows how answering the question of fixed versus variable prices resulted in generating creative selling ideas.

One idea is to make the fixed price approximate zero. The customer divides the benefit over cost. If the cost is zero then any minor benefit gets leveraged to infinity. Dr. Anani gives an example of an ad that was given as a gift to an international firm. The ad cost the company nothing. So, dividing the small benefit over zero cost to the client magnified the return. Not surprisingly, the client turned into a faithful partner.

In another example, the presentation shows how dividing the fixed cost into a combination of partially fixed price(about 60%) and the remaining 40% as variable cost to the customer. In essence, the customer has tp pay 60% of the bill. The customer is free to pay as much as he decides from the remaining 40%, depending on his degree of satisfaction. The only condition is that the customer has to state the reasons for his dissatisfaction. This resulted in improving the services to the extent that 90% of the customers paid their bills in full.

There are other witty examples in the presentation. I leave you to enjoy them

Architect for Breakthrough Achievement, Abhishek Shah has 13+ years of experience in selling, managing, building and leading sales organizations regionally and internationally. He is a sales development leader and experimenter. His ideas about selling are convictions about life, money, and meaning. He loves #technology & calls #socialmedia as his first love. He holds a bachelor's degree in commerce from Shri Ram College of Commerce and is a MBA from Institute of Management Technology, Ghaziabad. He lives in New Delhi India with his proud family and spends his free time pursuing one of his many interests, which include tinkering with gadgets & hardware, playing with his little tiger Aarav!! He calls Appitive.com as the daily Social Media Appetizer for which he is the CEO and managing partner.

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