Question

1. Rosa Wilkins gives 30-minute therapeutic massages at a local gym. All of her Monday and Friday appointments are taken and she has a waiting list for those who would like to move their regular massage to the first or the last day in the week. At the end of those days Wilkins is exhausted. Demand on Tuesdays and Thursdays is at an acceptable level, but no one seems to want a massage on Wednesday. Wilkins wishes she could convince some of her Monday and Friday customers to come on Wednesday. Can you give her some ideas to help shift the demand for her service?

2.Select appropriate cost allocation methods for various sales management situations. Describe how to implement such methods.

Answer 1

Rosa Wilkins is exhausted due to the hard work on Mondays and Fridays, also the demand for the service on Tuesdays and Wednesdays are also at an unacceptable level. It is good that she found the Wednesdays does not have enough demand for the service. So she could do the following things to convince some of her Monday and Friday customers to come on Wednesday.

1. As she has more time on Wednesdays, she could offer therapeutic massages for a longer duration than the present  30-minute one. It may be attractive to some of the Monday and Friday customers.

2. Otherwise, she could provide a special discount for therapeutic massages on Wednesdays. This will attract price-sensitive customers.

3. She could also introduce a special therapeutic massage on Wednesdays to attract variety-seeking customers.

4. She could tell the customers through a poster or a banner that the waiting time on Wednesdays is the least.

5. She could introduce some contest for Wednesday customers.

6. She could introduce some packages for "Wednesday Only" customers.