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no_price_cafeI hang out at a local café (you may have noticed I use many imaginative dialogues at the beginning of posts and they’re almost always in a café). I also do some of my own work at the café plus volunteering a little marketing and promotion—basically, I like the place.

However, this creeping, crawling economic downturn (aka recession or crunch) hit the owner of Java Street Café  pretty hard. I’ve spent hours talking business with him and watched as a bright and friendly man became progressively morose and extremely exhausted (when a business has hard times, paying employees becomes a problem and the owner has to not only run the business but literally Work  it).

Months went by, things getting worse, while the owner, Sam, in spite of the grueling conditions, continued  to try various ideas to attract customers…

Finally, last week, an idea he’d been experimenting with became a what-the-hell—”I can’t lose more than I already have”—Decision:

Take All The Prices Off The Menu—let people pay whatever they  feel is a Fair Price!

Sam had his back against the wall, he was willing to try just about anything, and he “happened” to choose and made a commitment to act  on what could seem like a very crazy idea…

That was last week…

Since then, he’s been interviewed on CNN twice, phone interviewed on MSNBC and Fox, appeared on all four of the local channels, been on three out-of-state radio talk shows, will be appearing in a morning cooking segment on the local Fox affiliate, and received calls of thanks from three other states and Canada…

As if that weren’t enough, the blogosphere is starting to warm up to the story and it’s on the edge of tipping into the viral realm.

Why?

Because it’s “crazy” and unusual?

Nope.

That may have been the initial and conscious decision of the media but, after watching it happen and, especially, watching his customers react, the real and deeper reason for all the interest certainly seems to be related to a nearly archaic principle—Business Ethics…

Sam’s customer’s have a variety of reactions when he takes their order then says, “O.K., what do you think is a fair price for what you just ordered ?”:

“Huh?”

“Me?”

“What’s your usual price?”

“Oh, my! I have to think  about it?”

“You’re kidding, right?

Sam’s not kidding, they do have to think about it, his “usual” price is now “your price”, and, when the day is done, the under-payers and the over-payers even out and he’s collecting what he used to get when he had prices…

Of all the various reactions, my personal favorite, and the one that sings  of ethics in business during hard times, is what the woman from Missouri said, when she called to thank Sam for his decision:

“After I saw the story on CNN, I cried…”

Spiritual Quote:

“As a practical step in contributing to a dialogue about development and social transformation that explicitly takes account of spiritual values and perspectives, some 100 influential development organizations, international and government agencies, religious representatives, and academics recently gathered in New Delhi to participate in a colloquium on the theme of Science, Religion and Development. The primary goal of the event was to explore how a unified interaction between scientific methods and religious insights can promote the building of human capacity, particularly in the areas of governance, education, technology and economic activity.”
2001 Jun 11, Universal House of Justice, Overcoming Corruption

 

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March 18, 2009 Posted by Alexander Zoltai
This was originally published here

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Comments (38)

Anonymous
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By Anonymous7 months ago

good for him, I wish I were as creative at my marketing! I think this will also establish a loyal customer base, I personally love the more personal approach to business.

Paroshep
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By Paroshep10 months ago

I have seen this concept work well in professional billing for services rendered. I am glad to see it applied to small items.

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Ben
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By Ben10 months ago

Very interesting experiment. It got the publicity due to the wierdness factor, but it will be interesting to see how long it will last.

Last post by Ben: How to take advantage of your userbase

Hugging the Coast
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By Hugging the Coast10 months ago

I love it when people think out of the box and use what Jay Levinson calls Guerilla Marketing instead of just relying on traditional advertising ideas. Such a fun idea too!

Anonymous
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By Anonymous10 months ago

A friend of mine has been doing this in her a small wine restaurant in Berlin since the late nineties. It works quite well despite all doubts. Not too much of a new idea, I wonder what all that publ...

Anonymous
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By Anonymous10 months ago

Brilliant. He truly deserves to succeed with this model. I use it myself. I fix people's computers but I usually don't set a price. Sometimes I do it for free, sometimes I do it for a meal, someti...

Anonymous
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By Anonymous10 months ago

Pretty smart idea. Good thinking indeed!

RT
www.online-privacy.pro.tc

Anonymous
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By Anonymous10 months ago

While living in berlin two years ago one of my favorite places to frequent was a wine bar which operated on this same idea. It is a great way to do business in humble opinon

Anonymous
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By Anonymous10 months ago

http://www.FilthyRichmond.com is teh taint

Anonymous
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By Anonymous10 months ago

Yeah, well, when the novelty wears off he's giving away free coffee.

Anonymous
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By Anonymous10 months ago

I don't know where this guy is located, but there's a place here in Austin that does the same thing.

Ted West
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By Ted West10 months ago

I think this is a wonderful experiment, and i wish the gentleman continued success. While it's heartwarming, it's also utopian, and it would not be viable on a wide scale. The fellow's story itself and maybe his own personality are factors in the success.

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shari
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By shari10 months ago

you gotta love a man with an imagination.

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