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Home / Business / Small Business

Fifteen per cent on

Herald online
15 Apr, 2009 01:24 AM3 mins to read

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Every year we go through the same stream of public holidays: Waitangi, Easter Weekend, Anzac Day & Queens Birthday.

On these days it is not surprising to find your local restaurant or cafe closed.

Arguments aside as to whether they should be allowed to be open, those that remain
open tend to charge a 15 per cent premium, in order to cover the additional staff costs.

Employers have to pay time and a half plus equivalent day off, such that labour costs are two and a half times what they normally are.

Secondly the premium helps garner revenue from the increased demand of consumers.

From a marketing point of view, this really annoys me. A public holiday is a huge opportunity to convert a new regular customer.

On these particular days there are more people out and about and their choice is limited as compared to a regular outing. It's like going to the supermarket to buy toothpaste to find your regular brand isn't in stock.

It is in such circumstances that they are more likely to experiment and try something new.

If you can show them your exceptional service you can add another regular customer.

I say next public holiday offer fifteen per cent off, put out on your chalk board 15 per cent off for all new customers and regulars, if I am going to try a new cafe, the one that has 15 per cent off is the one I will visit. If you're good I will visit again and again.

Why? Firstly you looked after me when everyone else was trying to fleece me and secondly you provided exceptional service.

Finally I'm going to tell all my friends, 'hey Ben what did you get up to?', 'we went to this neat little cafe that gave us 15 per cent off'.

You have looked after a new customer, rewarded them and got them to spread the word. It's the equivalent of giving free coffees away when you launch a cafe.

If you implemented this every public holiday, it would spread.

Your competition are probably too scared to do it as well, which makes it all the more compelling.

Given the huge mark ups on beverages and food at cafes I don't see why this wouldn't be sustainable for one day. If you operate a cafe, give it a shot, what's the worst that could happen?

You lose a few dollars the first time you try it, best case scenario you remain packed all day, and convert some new regulars. The regulars will pay off your discount very quickly.

I'll keep my eye out hopefully next public holiday!

- Ben Young

 

 

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