Example: A company in the aviation industry
In a production facility, the effect of a rise in price for lunch meals was questioned.
To optimize costs the subsidized price for a meal to be paid by the staff should rise by 25%. The study conducted with the C4E methodology recommended the opposite of the intended price jump, i.e. to reduce the cost of meals.
The consultant’s proposal was rejected. However, in a post-calculation it became evident that the increase in meal prices did cost a multiple amount resulting from decline in performance and quality problems.
In this case, the emotional costs exceeded the advantage from savings significantly.