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Common Cents

19 Jul 2003 by

I really enjoyed this post over at Kottke’s site. There’s definitely some good lessons to be learned here — especially “People trust you when you trust them.” I’d also wager that there’s a positive side effect to Ralph’s technique: a good amount of people probably don’t even take their change — they leave it as a tip. Unfortunately I don’t think Ralph’s “I trust you to make your own change” concept would scale well, or be all that appropriate for a smaller-volume, larger-staff business. But, the trust, speed, and innovative way to build regular customers lesson is a valuable one. After all, for many people donuts and coffee are commodity items. And, in today’s price-competitive global economy more and more products (and services) are becomming commoditized. Ralph has found a way to differentiate his product through speed and respect — two things early morning (read: rushed) customers really appreciate. Thoughts?

9 comments so far (Post a Comment)

20 Jul 2003 | Ryan C. said...

I couldn't agree more! I read that post just a few minutes before heading here to check up on SvN & had the exact same thoughts.

I'm not exactly sure which industries this could be expanded to, but it sure would be nice to see..

21 Jul 2003 | Don Schenck said...

Here in south-central Pennsylvania (in and around the Amish country), there are many, many front yard do-it-yourself fruit and vegetable stands. Very small, the owner will take some items grown in their garden and place them out front with a box, labeled something like "Honor System".

You take the veggies your want, you leave the money in the box. Been that way for as long as I can remember.

Perhaps I'm spoiled by it.

21 Jul 2003 | HP said...

I think that the system, in its fundamental form, can apply to service industries in general and could, with some modifications, scale rather well too.

For example, I am sure that it could work at Starbucks, at least for regular customers and during rush hours when staff tends to get overwhelmed by client traffic. Similar approach could work for car dealers and probably many other types of businesses.

21 Jul 2003 | Darrel said...

Similar approach could work for car dealers

Grab the keys and put a check in the mail?

21 Jul 2003 | HP said...

No, although it would be a good one. What I meant is more in line of the respect and trust part of the article. My last car purchase was probably the best one I have had in that the dealer did not try to pressure me into anything after I told him what I was looking for. Instead he simply gave me the keys to a couple of cars and let me take a test drive with my girlfriend without him in the car.

After the test drive, I chose a color, we figured out the price, which was better than I hoped for, and took care of the paperwork. The entire thing took a bit less than an hour.

So, my point is that mutual trust and respect along with convenience (speed) will work in most service industries regardless of whether it is a coffee stand or a car dealer.

All of this being said, I have to repeat that your concept is the one I like very much.

21 Jul 2003 | pblunt said...

The car dealer example rings true, though I think that's more about respect than trust. But I definitely would agree that more respect to the consumer is a good thing, and would ultimately be in corporations long-term interests.

But with regards to letting someone make their own change...that may work fine for the coffee shop, but I'm not sure there's a direct translation to corporate policy. To play devil's advocate here, why should corporations trust consumers? A lot of people that would never consider stealing from Joe Nicecoffeeguy or a hardworking farmer don't think twice about stealing corporations. Think music, software, and cable pirating. Think shoplifting, even office supply theft, tax fraud, etc. Think of all the untold billions lost by corporations every year to theft. Not to say I'm crying the RIAA a river, but I think the point is valid. Why should a corporation trust us?

22 Jul 2003 | Darrel said...

To play devil's advocate here, why should corporations trust consumers?

Umm...because they expect us to trust them?

Using your RIAA example, they expect us to trust them that downloading some brittney spears songs is severly hurting her ability to make money as an artist. They expect us to trust them that the one and only music delivery platform is the CD. They expect us to trust them that the price to manufacturer and distribute a CD is, indeed $18 and going up. They expect us to trust them that the artists they promote are the very artists that we'd want to listen too. They expect us to trust them that the $15 price-fixing settlement was more than fair on their part and that a true settlement for a teenager caught downloading a file is several years in jail and a 5-figure fine.

I could go on...but the point is that the recording industry, as it is now, is a PERFECT example of how DIStrusting your consumers can eventually put you out of business.

If the industry had a viable 'tip-jar' method to pay for music I've downloaded, I'd probably drop my spare change in there all the time. As it is, the RIAA still doesn't trust me when I say 'I want my music in MP3 format and I want it now. If *you* give it to me, I will pay'

Ah crap. Now this is an RIAA rant...

24 Jul 2003 | Pat Smytt said...

This consultant's "caveat venditor" offer is close.

16 Jan 2004 | Flug Lanzarote said...

Thanks!

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