Monday, March 24, 2008

Variable Pricing:

Seth Godin’s post “The bad table” poses two questions;

1) Who is the marketing genius who gave a bad table to one of the most popular authors on the planet?

2) Variable pricing in restaurants?

No #1 is answered by Seth, “Which means you need to figure out how to improve your lesser offerings. Maybe the table in the worst location comes with a special menu or a special wine list or even a visit from the chef. Maybe the worst table, for some people, becomes the best table because of the way you treat people when they sit there...

Treat different people differently. But don't treat anyone worse.”

No # 2 we shall explore. Two strangers walk into your restaurant. The look alike, they dress alike, they smile alike, they could be twins. One is seated at table 101, the other is seated at table 490. A totally random pairing, no bias whatsoever, those were the only two tables open in the restaurant.

Table # 101. The best table in the place. Panoramic views of the harbor and skyline, the server Jane is the most gregarious customer centric employee on your staff. Price of Filet Mignon $40.00

Table # 490. Panoramic view of the bathrooms, exit doors and other patrons with better exterior views, the server Bob has received numerous write ups for poor performance, the word smile is foreign to him and he neglected his hygiene this morning. Price of Filet Mignon $40.00

Both these guests paid $40.00, both had vastly different experiences. Variable pricing occurs daily with out any intervention by the restaurateur. If you were one of those guests, how would you feel?

Treat different people differently. But don't treat anyone worse.” Seth Godin