Dan Miller is a dentist who has a thriving practice in the medium-sized city. Newly business suffered as a consequence of patients not paying their dues on time. Problem intensified so much so that he makes a decision to do something about it. Consultant recommends that he offer 5% discount for instant payment, but Dan is not sure if that will resolve problem. He also thinks how much this move will cost him. One of his friends says him that discount present would be bad idea because he knows of construction company which used discount policy, that ended in disaster. Company lost 5% of its revenue on those who would have paid promptly anyway, and those who didn't intend to pay on time just did not pay.
Critically examine Dan's friend's suggestion. Write the applicable aspects also any judgments in advice. Does Dan's friend make any uncertain assumptions?
Write other substitutes for Dan Miller and explain their relative benefits.