Posts tagged “pricing”

Serving Up Carrots

A very small social experiment, more something to reflect on rather than proof of anything.

The Petite Syrah café in the Riviera city of Nice, has implemented a new pricing scheme. “A coffee” will set you back €7, according to the sign, while “a coffee please” is a little more affordable, at €4.25. If you want keep your expenses down, and stay friends with your local barista, however, the best option is “Hello, a coffee please,” which will only cost you €1.40.

Manager of the Petite Syrah, Fabrice Pepino, told The Local: “It started as a joke because at lunchtime people would come in very stressed and were sometimes rude to us when they ordered a coffee. Although Pepino admits he’s never actually had to enforce the price scheme, he says he has noticed a difference in his customers’ behaviour. “Most of my customers are regulars and they just see the funny side and exaggerate their politeness,” he said, adding “They started calling me ‘your greatness’ when they saw the sign. But people are more relaxed now, and they’re smiling more. That’s the most important thing.”

The framing here is important: there’s a reward for the behavior the business wants. It’s not a punishment for failing to adhere to the rules (e.g., surcharge for being a dickhead: $3.00) – even though it’s the same thing economically, behaviorally it’s entirely different. It’s the carrot versus the stick.

As well, the outcome is less about adherence to the rules and more about the increased mindfulness about a detail of the interaction. We’d need to come back and see what happens after the regulars attenuate to this change, but the empowerment that the rules produce as a consequence is quite enticing.

Also see previously: A silly (?) coffee pricing scheme at Tim Hortons.

Curating Consumption

Since Johnny Holland has said farewell, we’ll be continuing this series here on All This ChittahChattah. Here’s some stories and observations that Beth and Steve have assembled over the past few weeks.




Tim Hortons beverage pricing offers a large number of sizes with a tiny, silly price difference. No doubt there are graphs that prove this is a good pricing strategy, if upselling by 11 cents turns out to have any impact on the bottom line. As a shopper, I find it mind-boggling; the friction for supersizing is almost zero and now I have to actually think about how much I want to drink. The Tims man showed me the largest size and it was so obviously too much (more horse trough than hot choc), so I saved myself a few pennies and went down a size or two. /SP



Pets-as-people is certainly nothing new; a trend that has continued to grow in terms of marketplace dollars, emotional engagement a product selection. Still, it’s astonishing to look at a wall of clothing that looks like t-shirts in a range of kids’ sizes and styles, and to realize that actually you are looking at a selection of “Pet Gear.” /SP

As I tried to write the contents of this bag (pumpkin squash curry coconut) onto the label I quickly found myself ranting about the poor design: How can you fit anything on this tiny label (e.g., “pump sq cur coc”)? Then my young designer self surfaced and I realized that, “No, in fact this is perfectly designed.” The available writing space is exactly aligned to the end of the copy above, the height is exactly the height of the Ziploc brand. Everything was in harmony! I can’t tell you how many times while in design school that I designed something most beautiful yet most unusable. Thankfully a super brilliant creative director showed me the way. Functional can be beautiful. If you make medicine bottles clearer or safety messages intriguing enough to read then you’ve done something as a designer. What can seem like the most banal and uninteresting design project is a challenge not many can rise to. Anyone can design for cool brands like Nike, Coke and Pepsi. But can you make Ziploc bag labels a thing of beauty? Or at the very least, give me some more room to write! /BT



“Members only?” Here’s how I imagine that signage came about
Store manager: Why do you think we’re not getting any business?
Clerk: Maybe people don’t know we’re open?
Store manager: But we’ve been open for weeks!
Clerk: But we don’t have any kind of sign or anything telling people we’re open,
Store manager: But, it’s a store…I mean…the door is open…lights are on…we’re in here!
Clerk: Yeah, but it’s kind of not official until you have one of those big signs up…
Store manager: Fine!
[later that day]
Customer: Finally! Been waiting for you to open so I can see how much membership costs. /BT

ChittahChattah Quickies

  • Target jumps into book price war started by Wal-Mart, Amazon – What started as a book price skirmish between Wal-Mart and Amazon.com is showing signs of becoming a much broader holiday battle. Today retail giant Target announced it is matching Wal-Mart's online price of $8.99 for top selling, soon-to-be-released titles, including "Under the Dome" by Stephen King and "Breathless" by Dean Koontz.
  • Health Concerns Drive New Rituals (or attempts to create new rituals, top-down) – The handshake, with its potential to transfer the flu virus, should be replaced with the safer — and more contemporary — pound [aka fist bump] says the dean of medicine at the University of Calgary.

    "It's a nice replacement of the handshake because you can't just refuse to shake someone's hand. It's rude and seems almost un-Canadian," he said. "This is a nice, intimate gesture: a gentle bump of the fist that replaces the handshake if you get used it."

    The pound, or fist bump, is a greeting that originated with American black youth in the 1960s and is commonly used among sports teams.

ChittahChattah Quickies

  • Jobs on the Kindle, January 2008 – Today he had a wide range of observations on the industry, including the Amazon Kindle book reader, which he said would go nowhere largely because Americans have stopped reading.

    “It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”

  • Roger Ebert’s Books Do Furnish A Life (plus a ton of amazing comments) – I cannot throw out these books. Some are protected because I have personally turned all their pages and read every word; they're like little shrines to my past hours. Perhaps half were new when they came to my life, but most are used, and I remember where I found every one. The set of Kipling at the Book Nook on Green Street in Champaign. The scandalous The English Governess in a shady book store on the Left Bank in 1965. The Shaw plays from Cranford's on Long Street in Cape Town, where Irving Freeman claimed he had a million books; it may not have been a figure of speech. Like an alcoholic trying to walk past a bar, you should see me trying to walk past a used book store.

    Other books I can't throw away because–well, they're books, and you can't throw away a book, can you? The very sight of Quick and Easy Chinese Cooking by Kenneth H. C. Lo quickens my pulse. Its pages are stained by broth, sherry, soy sauce and chicken fat.

  • Seats Of Gold – A writer's experience in the newly-redefined "luxury" seats at the new Yankee Stadium. Fascinating as Wall Street hyper-greed spills into other industries and illustrates how to kill loyalty dead. Hard to summarize this piece, but it's a great case study and a well-written piece as the author documents their own experience supplemented with a lot of background interviews.

Familiar categories; different context

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In California, gas stations usually show three prices: regular, mid-grade, and premium. Sometimes diesel is shown. Even if there is small text to explain what those prices refer to, we mostly go off of familiarity, knowing what each box in sequence is telling us.

This sign from a Speedway station in western Michigan uses a fourth slot to indicate price for another item: cigarettes. Gas stations and smokes seem to go together better in MI than in CA.

Sneaky Sign

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Marin Oriental Rug House, slightly dodging the cliche that all such establishments are always “going out of business” – they offer the shopper the chance to shop at going out of business PRICES. Going out of business is no longer a state of being, it’s an attribute.

Nice.

I was fooled when I drove by and took this picture (while making a left-hand turn, even); it wasn’t til looking at the picture later that I see their little dodge.

$1.00

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Turning a price into a symbol of good will…somehow seems very Chinese, with the small but crucial focus on symbolism. Other items were priced and decorated the same way. Selling it for $1.02 or $0.99 wouldn’t provide the same visual/communication opportunity.

In the Chinatown marketplace in Honolulu.

A little Econ 101

The New York Times takes a quick look at how companies manage pricing of equivalent goods and services, and how people perceive value.

Although some people care a great deal about cutting-edge hardware and software, others would happily settle for simpler machines if that meant lower prices. Offering discounts to buyers of traditional white machines enables Apple to expand its market. And this reduces its cost per unit sold, freeing resources to develop even more sophisticated machines.

Series

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