The question says Wesley, an entrepreneur, has high sales in his laundry business due to a very good marketing strategy. He says “returned next day, or nothing to pay”. But consequently he has taken on more work than he can manage, and is unable to return some of the laundry the next day due to which customers won’t pay. We need to suggest a solution. I said, he needs to control the growth of his business. He could do that by raising his price so that demand for his service decreases to the much he can take.He won’t lose revenue, and make more per sale. Is it an acceptable solution?
PS: In the key it says, “He must review operations and ability to provide a next-day service to avoid overstretching resources and customer dissatisfaction.” This is perfect but is my solution acceptable as well? I need to know why mine’s not acceptable (if it’s not) in order to learn better. Please help. Thanks.