Why would a standard hour plan likely be less successful

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Reference no: EM133249960

Question - Quick Barbers is a men's barbershop. All their customers are male. Ninety per cent are over 60 years old. Nearly 100% have short hair. About 90% opt for a standard short back and sides haircut, using a number 4 or 5 electric shaver setting. Approximately 30% of the men are bald, at least on the top of their heads. Very few men (less than 1%) opt to have their hair coloured (except for weddings) or shampooed.

Quick Barbers pays a standard hourly rate of $20 per hour (assume that $20 per hour is the minimum wage). It has a standard hour plan with the following standard time allocations: a standard haircut is 15 minutes, a non-standard haircut (involving long hair) is 20 minutes, a shampoo is 5 minutes, and a colouring (e.g., from grey hair) is 10 minutes.

Barbers earn a bonus based on 50% of the value of the time they save.

1. The standard hour plan at Quick Barbers has been an enormous success. The standard hour plan has increased sales by 20% in total, while labour costs have remained essentially the same. Why would a standard hour plan be a success at a traditional men's barbershop like Quick Barbers?

2. Why would a standard hour plan likely be less successful (or even a failure) in other salons that serve women or younger men?

Reference no: EM133249960

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