Business Workouts: They Charged Me for the Chips and Salsa. Penny Wise and Pound Foolish

We must be careful in how we respond to the current decline in business revenue. I see and experience a number of knee jerk reactions. Some are not so smart. Recently I was visiting a frequently visited restaurant and when expecting the usual treatment at the bar, specifically some chips and salsa while we have a drink and wait for a table, but this time the bartender explained it would cost me $2.95 for a basket of chips and salsa.

I did not order it, was very unhappy and while the food was as expected, and I was satisfied with the experience, I was very unhappy about the chips. In fact I have been annoyed for a day now and promised myself I would not return, soon. They nickel dimed me right out the door. How silly.

Here is what they did, they took a free, make-me-welcome-and-invite-me-to-spend-money strategy by providing the bar customers with chips and salsa while we wait for our table and now are requiring me to pay for it, is offensive. Taking what was a gift, an offer of hospitality and turning it into a profit center was a bad move. Had they raised the price of the meal or the drinks that would have been acceptable and would earn no comment at all, that's a fact of life and business. But converting hospitality to a paid concept is a breach of our deal, what I expected and was now refused and this was unacceptable.

Here is the point. We all recognize the need for controlling our costs, and assuring profitable operations, but we must also use our heads when we decide what to cut and where to increase. Not providing signature items that attract customers is not a place to save. In fact expanding this area may be a better consideration as it creates a competitive advantage. Remembering that the objective is to bring customers in so they can spend large dollars, not to nitpick them to death with charges that are unexpected and unwarranted so they now do not want to return...What was gained? What was lost?

Perceived value includes all the benefits one gets when shopping at a particular location no matter what the venue may be. The little small additions that express the desire to do business and respect for the customer is not the place to save money, as that may be where an enormous amount of good will is created or lost over a few pennies.

So yes, watch your expenditures but let's not let the tail wag the dog.