Wednesday, October 12, 2011

All you can eat - Is it a good deal?

It's a bad deal for both Consumer and Solution Provider...

Consumer pays more because generally the Package is charged at a higher rate by the Solution Provider(who wants to minimize the risk of cost overrun).

Consumer wastes resources, instead of mindful quality consumption consumer focuses more on quantity of consumption - only because he has already paid the price.

Why it is generally a bad deal for Service Provider?

(S)he needs to take the risk of cost overrun and estimation errors. There is also a risk of bad press due to bad quality - if you have tried a-la-carte and buffet in the same restaurant, you know the difference in quality. The restaurant owner cannot just afford to provide the best quality food in a buffet.

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