From the Far Eastern Shore of Maryland
Last night, my wife and I had dinner at what used to be one of our favorite restaurants.
I say used to be, because we are not going back.
Since we are just wrapping up our annual “January Diet” (I lost 13 pounds, Gina lost 3. She is slightly perturbed by that, but that’s a another story for a different day), we wanted to substitute brown rice for the mashed potatoes on our entrees.
The waiter said; “No problem. That will be $3.95 extra.” Really? Is brown rice that much more expensive? Is there more effort in making rice over potatoes? It certainly was disheartening to hear. Having spent 25 years working in resorts and restaurants, I knew this was a bogus charge.
What does brown rice have to do with your business? EVERYTHING!
Businesses can lose a customer over a small extra fee or charge, especially if it is trivial or should have been part of the main price to begin with.. As a business owner, you are in a more advantageous position eating those charges yourself or including them in the overall charge of the item.
If not, it may leave a rotten taste in your clients mouth. How much do you think it is going to cost the restaurant to that? It’s not like we were asking them to cook a Texas Sized Ribeye in place of a cheap burger!
6 guidelines for when not to charge for the extras:
- Bloated prices. If I get charged $1 for having the hotel front desk clerk make me a black and white copy of one sheet of paper, I know I am being overcharged.
- There is no perceived value to the customer. Clients don’t mind paying for more value or a higher grade. But what value do I perceive when you charge me just for substituting a vegetable on the menu? I’ts not like they have to make an extra trip to go out to a grocery store to buy it.
- Normal costs of doing business.One of my carpet cleaning competitors charges “fuel surcharge” and “waste disposal” fees. (All of which should be included in the price) Shouldn’t that be part of the costs of doing business or do I feel nickel and dimed?
- Your competitors do it so why shouldn’t you? Have you seen your competitor’s sign advertising lower prices yet add on hidden charges? This is known as Bait-n-Switch! This will guarantee the most complaints and fewest referrals.
- Hard to understand fees- Unless you are a cell phone company, you MUST employ good judgement to add another line to your bill. Always discuss it with the customers before hand. If the additional fees are transparent and easily understood, they will likely be accepted.
- Added services or products– If you are a barber or hair studio, you better not charge for regular shampoo, but you can offer a high end shampoo and then charge accordingly.
Extra surcharges, taxes, fees that are revealed at the end of a service or transaction will leave an unpleasant taste in their mouth..
Is that the last impression you want to leave?
Do you think we will ever go back to that restaurant?
Worst yet, how many people have we told about the experience?
Why not tell the customer that you will be providing those extras “On the house” as a way of thanking them and appreciating their business.
Author of the book “Systematic Magic, 7 Magic Keys to Disnify Any Business”
Author of the new book “Tales From the Customer Service Crypt. 10 Tales of Customer Experiences So Poor, They Should Be Buried In a Crypt For All Eternity. AND 47 Actionable Strategies, Questions, or Tactics You Can Use Right Now to Improve Your Client / Patient Experience
For more on Disney Style Service and small business marketing or having Vance speak at your next event or meeting, check out the free special report “Systematic MAGIC, How to Disnify Any Business”. Vance Morris is a Walt Disney World Resort Management Alumni, having spent 10 years as an executive in the Resorts. He runs the only Disney Service & Direct Response Marketing business on the planet. Here he coaches companies to create Disney Style Service Systems and then monetize them through direct response marketing. He is also the longest reigning GKIC Marketer of the Year. He can be reached at www.DeliverServiceNow.com or vance@deliverprofitsnow.com .
For speaking engagements, please visit www.vancemorris.com
