"Your bill is $10k, pay after Dec 15 and you get fined an additional $5k"
say
"Pay by Dec 15 and get our discount rate of $10k, otherwise get our standard rate of $15k"
Numbers are the same. Very different reaction from people.
Discounts are something people want. Having time-limited discounts is a classic sales technique. People don't want to lose out.
Some departments are required to take discounts, but encouraged to fight late fees.
Fines are annoying, but the effectively give you a structure and excuse for doing the bad thing.
There is no logical difference - but people aren't logical.
"Your bill is $10k, pay after Dec 15 and you get fined an additional $5k"
say
"Pay by Dec 15 and get our discount rate of $10k, otherwise get our standard rate of $15k"
Numbers are the same. Very different reaction from people.
Discounts are something people want. Having time-limited discounts is a classic sales technique. People don't want to lose out.
Some departments are required to take discounts, but encouraged to fight late fees.
Fines are annoying, but the effectively give you a structure and excuse for doing the bad thing.
There is no logical difference - but people aren't logical.