The problem is in the hierarchy.
The power resides at the top, while all the information resides at the bottom.
Sidney Yoshida quantified this in his 1989 landmark study, “The Iceberg of Ignorance,” where he found that only 4% of an organization’s front‐line problems are known by top management, 9% by middle management, 74% by managers and 100% by employees.
I’ve always asked my direct reports to be open and straight. If they tell me everything is perfect in their area/department the possibilities really are only:
- They’re not telling me the truth.
- They are ignorant.
- They have low standards.
By not really changing the price of coffee the University of Winchester campus has used 34,000 less the disposable cups in the first year. How? By removing rewards and introducing penalties.
See the video here from BBC News.
This all feels a little counter-intuitive to me, but it appears to be a success. The University of Winchester changed the way their prices were presented. The old pricing had a 25p discount if a customer brought their own cup/mug. The revised pricing reduced the coffee prices by 25p and charged a 25p penalty if the customer needed a disposable cup.
I wonder how much of the success was caused by a general increased awareness of plastic pollution? It is also quite likely that 25p reduced price on the menu would have stimulated sales.
The key learning here for me is – experiment. There are many ways your pricing can be presented differently, trial some new ideas.
Is the pricing on this advert misleading?
The headline price of £5.99 is shouted loud and clear. In reality, the minimum transaction cost is £13.38.
£5.99 gets you a box of 32 disposable contact lenses. But you cannot buy one box, the minimum order is, in small print, 2 boxes.
Then you have to pay £0.70 shipping per box. As stated though, you cannot buy one box. So the minimum shipping is £1.40.
This feels like a slightly more overt version of drip pricing, as some ticketing websites are accused of.
Drip pricing is a technique used by online retailers of goods and services whereby a headline price is advertised at the beginning of the purchase process, following which additional fees, taxes or charges, which may be unavoidable, are then incrementally disclosed or “dripped”. Source: Wikipedia
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I will soon be talking to some students about events and event management. If you have a moment, please could you help me?
#events #eventmanagement #conferences #sportingevents #musicpromotion #eventscareer
What I would like is brief comments from you about the good and the bad of events. If you work in event management, feel free to join in. My core content is mapped out, but I would love to bring it alive with your words.