Pay what you want

Blue_Wolf

Throwing this here as it is to do with value.

New resteraunt opened and I'm sure quite a few of you have heard about it on the radio. Unfortunatly I dont know exactly where it is.

They dont have set prices on their food. People pay what they feel is the right price for what they got.
I think this is a brilliant idea, genius if I can say! I would actually pay over the value as to say well done for taking such a risk to bring better value to Irish consumers. The owner did admit that there were people that paid really well below the value. I.E 4 course meal for 3 people value emm say 130euro give or take. People leaving 30euro on the table and leaving.

That really pissed me off to say the least as it ruins it for everyone else. People keep doing that than the Business could collapse. Same with everything insurance high for 17-25 year old lads etc etc.

I just wanted to say this as we all moan about IRELAND being a rip off but given the chance some of us have no problems ripping others off :mad:

DonJose

Blue_Wolf wrote: »

Throwing this here as it is to do with value.

New resteraunt opened and I'm sure quite a few of you have heard about it on the radio. Unfortunatly I dont know exactly where it is.

They dont have set prices on their food. People pay what they feel is the right price for what they got.
I think this is a brilliant idea, genius if I can say! I would actually pay over the value as to say well done for taking such a risk to bring better value to Irish consumers. The owner did admit that there were people that paid really well below the value. I.E 4 course meal for 3 people value emm say 130euro give or take. People leaving 30euro on the table and leaving.

That really pissed me off to say the least as it ruins it for everyone else. People keep doing that than the Business could collapse. Same with everything insurance high for 17-25 year old lads etc etc.

I just wanted to say this as we all moan about IRELAND being a rip off but given the chance some of us have no problems ripping others off :mad:

I'd be happy to pay UK prices

Nody

The model is very unlikely to succeed because people are simply a) greedy, b) don't know/care about actual cost of items/people etc and c) don't know how much it is expected to pay to break even.

Blue_Wolf

ya but there were wealthy/Generous people nearly paying double the price which makes up for the Greedy people

Johnboy1951

The owner did admit that there were people that paid really well below the value. I.E 4 course meal for 3 people value emm say 130euro give or take. People leaving 30euro on the table and leaving.

That really pissed me off to say the least as it ruins it for everyone else.

I see nothing to get upset about.
That is the way the business is set up and promoted.
The only value is what the customer puts on it .... not the cost of production.
And yes, regardless of the manner in which the meal is charged there will always be customers who have a bad experience ..... did it not occur to you that those who left minimal amounts were actually expressing their disappointment with their dining experience?

Dexterm99

Blue_Wolf wrote: »

People pay what they feel is the right price for what they got.

If they are doing this to get more people in the door and rely on the bar takings and return custom then it may work. But I really can't see them staying in business much longer if they are willing to give >75% off. I'd be surprised if they are still doing this in two weeks.

Blue_Wolf

Johnboy1951 wrote: »

did it not occur to you that those who left minimal amounts were actually expressing their disappointment with their dining experience?

Sorry I did not elaborate but the point the owner was making was that those who left very poor amounts didn't have a problem with the food. Although he did also say that more people were paying double the value price than those who were just taking advantage.

Johnboy1951

Blue_Wolf wrote: »

Sorry I did not elaborate but the point the owner was making was that those who left very poor amounts didn't have a problem with the food. Although he did also say that more people were paying double the value price than those who were just taking advantage.

I guess I am a bit out of step here

I do not see it as taking advantage or being greedy on the customers part, as I also do not see it as the owner taking advantage of those who leave twice the value the owner puts on their meal.
If the customers who leave a smaller than expected amount are greedy and should have left more, then the owner should refund money to those who have "overpaid".
That of course is not how the business is promoted.

To stay in business he can but hope that those overpaying do so by more than those underpaying.

So even if the customers did not have a problem with their dining experience (doesn't have to be the food) they have been invited by the owner to pay what they think is suitable. That is not greed. That is essentially a response to an invitation.

The owner must take the bad with the good or go back to a price list.

ch750536

A way around this would be to announce what a table was paying,

Cue big flashing screen, Mr Johnstone on Table 4 has left €10 for a 3 course meal for 2!

Plenty willing to ripoff on the quiet, not so many publicly.

sceptre

It's an interesting concept and it's been tried and tested in various places (see here, here and here). There was a pretty famous one in London in the late 60s run by hippies, can't remember the details though. I do remember that they said at the time that on average, most people overpaid if anything and those that drastically underpaid tended not to come back a second time, chancing their arm only once.

Not sure if it'd work in an Irish setting but time will tell I guess.

wyndham

Blue_Wolf wrote: »

I think this is a brilliant idea, genius if I can say! I would actually pay over the value as to say well done for taking such a risk to bring better value to Irish consumers. The owner did admit that there were people that paid really well below the value. I.E 4 course meal for 3 people value emm say 130euro give or take. People leaving 30euro on the table and leaving.

That really pissed me off to say the least as it ruins it for everyone else. People keep doing that than the Business could collapse. Same with everything insurance high for 17-25 year old lads etc etc.

I just wanted to say this as we all moan about IRELAND being a rip off but given the chance some of us have no problems ripping others off :mad:

Far from genius, this is one of the stupidest ideas I have ever heard, unless the restaurant is intended to be a quasi non-profit soup-kitchen charity for the homeless. If the idea is so clever, why do all businesses not operate on this basis? Want a new BMW? Just give us whatever you think it is worth!

You may decide to pay over the odds and subsidise other strangers eating at the restaurant for reasons best known to yourself, but I suspect that people like you would be few and far between, particularly in this economic climate.

Johnboy1951

Far from genius, this is one of the stupidest ideas I have ever heard, unless the restaurant is intended to be a quasi non-profit soup-kitchen charity for the homeless. If the idea is so clever, why do all businesses not operate on this basis? Want a new BMW? Just give us whatever you think it is worth!

Seems there are some business models like this that are successful ....... I can get music on line and pay what I think it is worth ..... nothing at all if I do not value what I have downloaded.
Those artists who have adopted such practices appear to be satisfied with the results they are getting.

wyndham

Johnboy1951 wrote: »

Seems there are some business models like this that are successful ....... I can get music on line and pay what I think it is worth ..... nothing at all if I do not value what I have downloaded.
Those artists who have adopted such practices appear to be satisfied with the results they are getting.

The Radiohead Experiment?
The band refused to comment on the outcome of their experimental payment model, but from surveys, at least 60% of downloaders paid nothing.

http://www.nytimes.com/2007/12/09/magazine/09radiohead.html

Apples and oranges in any case as the input costs are 0 for the music after a certain number of units. Unfortunately, the same cannot be said of steak and wine. Also, one has to consider that their product is available for free anyway, albeit illegally, so they really didn't have anything to lose by bringing those who would have illegally downloaded "into the fold". They had everything to gain as they could gather data and contact details on these people for tour/merchandise marketing. Plus the extra publicity garnered from the stunt itself was a bonus for a band considered well past their best.

Blue_Wolf

haha not such a bad idea!

ch750536 wrote: »

A way around this would be to announce what a table was paying,

Cue big flashing screen, Mr Johnstone on Table 4 has left €10 for a 3 course meal for 2!

Plenty willing to ripoff on the quiet, not so many publicly.

sceptre

wyndham wrote: »

You may decide to pay over the odds and subsidise other strangers eating at the restaurant for reasons best known to yourself, but I suspect that people like you would be few and far between, particularly in this economic climate.

I've provided three examples where it's worked in this particular business (and they were just three quick examples, I could have found quite a few more). Perhaps Ireland is different, time will tell, but I've got three restaurant examples where it has been tried successfully and you haven't provided any where it's drastically failed.

If it does fail, it's not as though the sky will fall on our heads, it's one business owner trying something here that's worked elsewhere.

johndaman66

I just fail to see how this business model would work with a restaurant or otherwise. Who does know the real cost of producing or value of a meal? Its unlikely that people like myself who seldom eat out would and the same goes for tourists who have never being in the country before. Its unlikely avid restaurant goers would either seing as the thread suggests that restaurants are a rip off anyway and I would certainly agree with this. So what is the real cost of or the value of a three course candle lit meal for two in a restaurant in Dublin city centre with fancy decor?...hell who knows. Some people will still unknown to themselves be ripped off.

A far better approach in my opinion would be to offer all customers some value for their buck and it would be a good way to achieve a competitive advantage by ultimately selling more restaurant seats?

Blue_Wolf

johndaman66 wrote: »

A far better approach in my opinion would be to offer all customers some value for their buck and it would be a good way to achieve a competitive advantage by ultimately selling more restaurant seats?

The cheaper the seats the more you will have to fill to make up the loss. Therefore you have less time to sit in that seat to enjoy your meal and will be quickly shoved out so the next crowd can sit there.
Not really a nice dining experience.

rubadub

johndaman66 wrote: »

Who does know the real cost of producing or value of a meal? Its unlikely that people like myself who seldom eat out would and the same goes for tourists who have never being in the country before....

So what is the real cost of or the value of a three course candle lit meal for two in a restaurant in Dublin city centre with fancy decor?...hell who knows.

Its no big mystery, just look at the prices on the menu that is shown outside most restaurants and make up your own mind what it is worth for a similar meal in a similar restaurant.

johndaman66

Blue_Wolf wrote: »

The cheaper the seats the more you will have to fill to make up the loss. Therefore you have less time to sit in that seat to enjoy your meal and will be quickly shoved out so the next crowd can sit there.
Not really a nice dining experience.

That would hold true if at any one time all restaurants were full to capacity and the amount of time a seat was taken for by a patron was proportionate to the cost of the meal. However, and in particular at the moment in these recessionary times I don't see how the point is off any particular relevance. In the case of an overpriced restaurant you will find that there will moreless always be empty tables at any given time so the rule won't particluarly affect them anyway. The above is the case in slacker periods but I'm sure that at busier times such as valentines day where they are full to capacity they will be just as eager to see a high turnover of customers to ensure there are always seats available.

Its simple economics and like the filling station that charges more for petrol. You may say on the face of it that this petrol station must be making a lot of money but not necessairly the case when compared to the filling station across the road which is a few cent cheaper yet selling a much much higher volume of petrol.

johndaman66

rubadub wrote: »

Its no big mystery, just look at the prices on the menu that is shown outside most restaurants and make up your own mind what it is worth for a similar meal in a similar restaurant.

Thing is though seing as we are being ripped off by restaurants and this is the logic behind this new model what is the meal worth??? The prices of similar meals in similar restaurants is off no real relevance as this is the rip off price seemingly. What was the cost of the food, how much of the cost of overheads, staff costs, rent of premises, insurance advertising costs etc. should I factor into the price I pay and allow for a fair profit margin? Then what is a fair profit margin?

Blue_Wolf

No, all resteraunts would not have to full to capacity. Point that was made was all resteraunts are a rip off so get more for your "buck" and charge them less per seat. If that was the case and it was a good resteraunt people would be waiting to get in there and not because the other resteraunts are full.

johndaman66 wrote: »

That would hold true if at any one time all restaurants were full to capacity.

No1XtinaFan

where exactly is this restaurant? thanks

dh0661

The restaurant, don't know the name, is in Killarney.
I know that they took on a challenge from Ray D'Arcy radio show to do this, I think it was for one month only.

Blue_Wolf

No1XtinaFan wrote: »

where exactly is this restaurant? thanks

In Dublin but as the other poster said there is one in Kilkenny. The one they were talking about on the radio was in Dublin but have no idea whereabouts. Citycentre I'm thinking.

dh0661

Blue_Wolf wrote: »

In Dublin but as the other poster said there is one in Kilkenny.

I said Killarney - as in Kerry

Climate Expert

Sounds a stupid idea.

Make good food and charge a reasonable price and let the amount of customers be the deciding factor.

Blue_Wolf

dh0661 wrote: »

I said Killarney - as in Kerry

ooops well kilkenny is nicer than killarney