Skip to main content

Posts

Showing posts with the label Maximizing Profit

A Cab's PODR...

Every time I travel for research I end up taking a cab, from the airport to the hotel, or to research facility, but I always end up taking a cab. Anyway, so while on our way to the Miami International airport, $20 later and five minutes from it I look at the moderator and said "I was thinking, how much do you think is a cab's Point of Diminishing Return?" She just looked at me and said, "what do you mean?" So I went on to explain. Yes, if I was a cab driver, I would be careful on where I take people... well, let me rephrase that. I would not deny service, but the moment they told me "airport please" or "Grand Hyatt" or whatever, my head would go straight to the numbers. Now I don't mean fare or trip, I mean tip. Let me explain a little more, I usually tip the guy $5, and my average fare is in the 20's. My point is the following, if the average person tips $5 (assuming everyone behaves like I do, which I don't recommend ;)) then...