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The problem is he might become saturated with orders. He has two options - say he can't deliver or raise his prices so high that his remaining capacity will be
by proee 16y ago
The problem is he might become saturated with orders. He has two options - say he can't deliver or raise his prices so high that his remaining capacity will be filled with the highest priced customers.
As a customer I like choices and the on-demand pricing model allows him to tell his customers his product is always available - though sometimes at a higher cost.
- olefoo 16y agoSo if he gets saturated w/ orders all he has to do is... hire another cook, or another delivery guy. He could have like a whole network of sandwich makers, and a full-on switchboard to take the orders if it got too crazy.
- jackowayed 16y agoBut if he hires another cook, he's paying the cook when he tells the cook his hours are, whether or not it turns out he actually needs the cook for all of those times. If he were consistently saturated, hiring another cook is a good idea, but if it's just saturation that lasts under an hour, congestion pricing is a better model than increasing capacity and losing a lot of money when he's not using the capacity.
- eru 16y agoCan't he hire another cook as a subcontractor and also pay him with an on-demand model?