Free Effect. A new ice cream company in India has set up free ice cream vending machines on the streets to promote its brand. Result? People lined up at a very long distance in front of the vending machine. It was raining then, and the people in line went to a convenience store to buy umbrellas, then lined up again. Umbrellas cost much more than ice cream. However, people kept lining up. Cheap and free are two completely different concepts. When the price is low, sales increase slightly, but when it is free, an extraordinary dimension of the problem arises. It’s a privilege, so consumers are willing to pay a higher price to get something for free. Free is not a matter of reason; it is a matter of emotion. - Joseph’s “just my thoughts”
Don’t let a salesperson collect sales money, as it can lead to corruption . While corruption involves the human mind, the structure is more important. If a salesperson is trying to increase their salary by improving their performance, they may resort to hiding unfavorable payment terms . However, a salesperson can hardly succeed if sales and money collection are separated. Do not leave fish to cats . - Joseph’s “just my thoughts”