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
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