Saturday, August 30, 2014

Yep!

"We've actually experimented with prepaid vs postpaid meals in our restaurant. The verdict? Upfront payment increased table turnover by over 80 %.
The difference is that customers who haven't paid can justify their occupation of a table. They surf facebook. They chat away for hours on end. They get comfy. It matters not whether they intend to order more stuff, the mere possibility of them ordering more gives them the moral upper hand. 
Customers who have paid up on the other hand, do not have moral justification. They could order more food, but diminishing marginal utility and inertia discourages that act. They get edgy. They feel guilty. They leave."
in Quora.com

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