Thursday, March 19, 2009

Cafe No-Pricing Policy

I usually flock towards Starbucks when I’m really thirsty and in need of something cool, icy, and very sweet! My choice in drink varies from time to time but lately it’s been a grande frapuccino which costs about $4.00. What if I could choose what to pay for it? What if I was asked to pay what I thought was “fair”? I don’t think Starbucks is going to adopt this policy anytime soon but a café in Ohio has not only implemented this business plan but has also been quite successful doing so.
The café did away with pricing and allows the customer to pay want they want. According to its owner, Java Street Cafes sales and customer count has gone up between 50-100% daily. The best part of the story…the café may hire more staff because of its recent success...(Video from CNN about the cafe added at the bottom). It’s definitely nice to hear about a business doing well and hiring since all of the news seems to be about the recession, bailouts, and job loss.
I will also use this opportunity to address another point. Where’s the assistance for small businesses? If small businesses generate 60-80% of net new jobs annually, then why don’t we provide relief for the business community?
I’m upset about the AIG bonuses also but I’m outraged about the lack of concern for small business owners!
(As for my Starbucks, I already think $4 bucks is a bit hefty for a drink! If I had to pay what was fair…I know I wouldn’t pay over that amount but I wouldn’t pay less than $3. I guess it would depend on the service I received. Actually, this is far more difficult than I ever imagined! You don’t want to come off looking super cheap but you don’t want to pay too much!)


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