This is a precise science – gauging how many fewer cents certain products need to cost that will increase customer tolerance for, say a 12 minute longer checkout wait than the competitor or general lack of good service. You’d be surprised at the findings and the collection methods of this data. The way the company makes money is by this sophisticated method of reducing service to lowest possible level just above the breaking point – where customers walk out. However, management is on salary, so their bonuses are calculated based on their departments’ profit margins.
They’ve discovered that people with put up with a hell of a lot to save 12 cents on Ritz crackers. They could also offer better service and really could afford to increase wages without raising prices, or maybe by raising prices only marginally, a few cents across the board which most of us wouldn’t notice. But they don’t. I forgot about this but the company pits management against labor in order to facilitate this race to the bottom very effectively. Annual bonuses are based on sales figures.
Home: Dalat Store