The Whistle Dog Factor
Or how $.25 destroyed a customer for life
The facts have not been changed to protect the guilty.
OK, I admit it I have a secret love of hot dogs, to be specific an A&W Whistle Dog, Onion Rings and Diet Root Beer. Now don’t get me wrong this is not a daily or even weekly thing, but it was a twice a month thing. So you say, “OK you like some fast food every so often, what’s that got to do with a sales based blog posting”. Well this is where things get interesting. My regular Whistle Dog fix costs me about $11.50 a hit and I go twice a month so that’s $23.00 a month or $276.00 per year.
I am a nice, quiet, very predictable, repeat customer and I bus my own table when done. This makes me pretty much every A&W shop owners dream customer right? You bet right, so then why am I now being charged $.25 for one little plastic disk of BBQ sauce to go with my onion rings? I mean WTF. I am seriously miffed.
I think it was Robert Burton (and not Ben Franklin) who coined the phrase “penny wise and pound foolish” and that’s exactly what is going on here. I just dropped $11.50 on a hot dog, badly cooked onions rings and $.03 worth of root beer and they have the nerve to put the touch on me for a single serving of BBQ sauce?
Well first I asked the sales clerk if she was serious, and she was so I very politely paid the lady the $.25 and have not been back for two months, those two months will just keep going and going as I have now started my one man boycott against dumb sales policies and practices. Be warned from now on if I see them, or experience them I am going to write about them.
Yes, the A&W shop owner got their $.25 and now I am going to keep my $276.00/year times the next 20 years and believe you me that $5,520.00 plus inflation is going to by me… well I guess I am on the lookout for a new hot dog shop. Oh and I do hope that the A&W shop owner comes to realize that no matter how many coupons you give it, it will never make up for “Taking Your Customer For Granted”.
OK, my rant is over, now let’s look at the sales lesson, you have a fully qualified customer, who is paying their bills on time, every time, so what happens? Some number-cruncher in the organization says we are losing money on (enter your example of the BBQ sauce here) and we have to pass this charge onto the customer no matter what.
If you agree to start doing this; congratulations you have just joined the Penny Wise, Pound foolish club. You will lose customers by the dozen all because you did not follow one of most primal product pricing policies… Thou shalt not insult your customers by “nickel-and-diming” them.
There are dozens of pricing strategies to not only get incidental costs covered but to use them to build customer loyalty (none of which appear to be covered in the A&W shop owner’s operations manual).
Now apply this our daily industrial sales reality, we are busting our back sides, to make sales worth thousands of dollars a unit. Getting sales, providing great service and earning customer loyalty is hard work. Are you losing sales, sometimes big sales over policies and practices that are seen by your customers as them getting nickel-and-dimed?
Three key questions:
1. Are you’re pricing policies and/or practices triggering negative emotions in your customers, compelling them to go shopping?
2. What if your biggest barrier to more sales is the pricing program you are following?
3. Are you taking the $.25 as asked for and trading away loyal customers for life?
If you want to know more get in touch.