
Cafe owner thrives with no-pricing policy - chaostheory
http://www.cnn.com/2009/US/03/17/lippert.qanda/index.html?iref=mpstoryview#cnnSTCText
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sidsavara
I read one study that showed having eyeballs (e.g., a picture of someone
looking at you) next to the cash box increased deposits by some N% (I don't
want to spout facts as I can't recall the number, but it was n > 10 - double
digit percentage increase). They controlled for there just being a picture by
alternating pictures of eyeballs with pictures of flowers.

I suspect part of it may be due to people showing up just for the novelty of
it, but going back to the eyeball study (which I am too lazy to look up the
reference for) I wonder if there is another thing at play too. Perhaps people
think oh cool, let's show up and game the system, and they make plans to go
there _intending_ to perhaps pay 20% less than market.

Then they have to look the owner in the eye and tell him what they think is
fair, and for whatever reason their mind changes. So rather than paying .8x,
like they originally intended, they end up paying instead x - 1.2x

So you get increased business because people who were willing to pay .8x (lets
say x = $10 based on the article, so $8) show up, and end up spending x - 1.2x
($10-12, per the article). Some portion of new customers may see that their
game won't work (because they don't want to lie to the owner) and they just
leave. No harm done - these people weren't eating at the cafe to begin with.

So I chalk at least part of this up to a neat psychological trick - but I
wonder if many of those people will be repeat customers (some portion
obviously will).

Anybody have references to back this up? This is just what I suspect may be
happening, as it's what I susepct happened with folks who may have intended to
steal bagels/candy from the office kitchen, saw the eyeballs and ended up
paying for them instead.

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alecst
Link to referenced study:
[http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=16...](http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1686213)

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orblivion
I understand how guilt can keep a lot of people from gaming the system too
hard, but what about really desperate people (homeless people, for instance)?
You'd think they'd eat there constantly, once they heard of it, and drive the
place under.

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triplefox
The owner retains the right to refuse service.

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jodrellblank
So there is a price, but it's secret?

Sounds like the same scam as tipping to me. Get me there and I will pay/tip
over the odds out of fear, guilt, social pressure. But I will try to avoid
going as putting that hassle and discomfort on me doesn't make for a pleasant
customer experience.

~~~
lsb
Once you've been to the UK, and experienced the blazé waiters and bartenders,
you realize why being paid by tips is so important for good customer service.
It's probably terrifying to be paid $3/hr + tips, which is common, but that's
a big incentive to being nice.

~~~
jodrellblank
I live in the UK.

The thing about tipping is that he cost of tipping is a small addition to the
bill of an unknown socially set common percentage depending on place and
culture which I don't enjoy guessing.

But the cost of not tipping or tipping too little is incalculable and
potentially completely disproportionate to the situation, and potentially long
term.

Hence, however much you explain the ideal of tipping being a kind of feedback,
ensuring prompt service, etc. I will never not tip well, so it will never work
like you idealise.

There is no way to differentiate a poor tip due to bing a cheapskate, one due
to misreading the socially accepted norms, an unjustified poor service
complaint or a valid poor service complaint. The whole tipping system works
against the customer. Just tell me you're adding a set % to the bill and if
the service is no good I'll vote with my feet and not come back...

Remember the scene in Monty Python's life of brian? "how much for this?" "20"
"ok" "no you have to haggle - offer me ten" "how about 10?" "ten for this? Are
you mad it cost me twelve!" etc.

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jerf
Do tipping customs vary widely within the UK?

In the US, as far as I know they are quite stable across the country so it
doesn't stress me out. If I traveled to another country, I would consider
learning the tipping customs to be just another thing I need to learn, along
with the electric system voltage and whether or not to shake hands. But if it
varies widely within the same country, I could see how it would annoy you.

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jodrellblank
_Do tipping customs vary widely within the UK?_

_blink_. I don't know.

I've been going to the same barber for a decade, but I don't know if tipping
is customary for haircuts in the UK, either in cities or in small towns, or in
that establishment. Maybe next time I ought to ask.

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ken
Terra Bite in Kirkland (about 5 blocks from Google) does this, too:
<http://www.terrabite.org/press.htm>

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Celcius
My first thought as other people have already noted was that I would be
terribly guilt tripped and pay slightly above what I thought would be the
average to make myself look good.

I do wonder however if people also pay more as a form of social-compensation
and not guilt as they figure they are weighting up the cheap people.

This phenomenon would make an interesting study to read.

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HSO
Interesting that people will pay what the owner says they do, when in physical
proximity, and totally exploit the creator's friendliness when it comes to
"donationware".

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inerte
Maybe someone running somekind of website where donations are accepted could
run this experiment: Put on your sign-up/logout or download page a donate
feature, and pictures of you next to your children/pets/dependent whatever, or
a picture of your old car/tv and some text saying "I'm looking for money to
replace this", etc.

I think physical proximity is a factor, but the emotions involved are more
like "I can't screw the guy" and "I should help the guy" or "I should be a
good person and do this", so if you can make these feelings emerge...

