R. Shawn McBride recently spoke about an unusual way to keep cost down in business.
Hey, folks, Shawn here with you today, talking about something interesting that happened to me recently. So recently I took a day off. I was traveling. Had a day before a meeting, so I took a day. And you know what happened? I got charged a very interesting fee when I went to a restaurant. The restaurant charged me what they call an honest to goodness fee. So I questioned it, I’m like, “What is this fee?” Because I’m used to looking at my receipts. I glanced down there and saw the sales tax, was calculating the tip for the waitress, and so I saw this fee. I said, “Well, what is this fee?” She said, “Well, that’s a fee we charge “to keep our prices low.” I want you to think for a second. Think about the paradox of this. They are charging you a fee on their prices to keep the prices low. And if you go to their website, it explains that they had a situation where they needed to increase prices, but rather than increase prices, they charged a fee. But how honest is this honest to goodness fee? Is this truly honest to your consumers? Is this the kind of impression that you want to make upon them? I would say not.
I think we as businesses need to be very careful about how we think about things and how we position things. Charging a fee to keep your prices low is inconsistent with charging a fee. If your true goal was to keep your prices low, you would have to make other adjustments to your business, not add an honest to goodness fee onto your business charges. We need to be very careful. We are serving our customers, our customers who are on the outside. So as we’re building and executing plans, we can get so caught up in the internal – so caught up in what we’re doing in our business that we’re not thinking about how we’re impacting others, and that’s where we need to stop. We need to understand how all the pieces fit together, what we’re building, and how it all works. So, is it right to charge somebody a fee to keep your costs low? I would say not. I don’t even think this would happen in America. This particular establishment was in Canada, and I don’t think in the U.S. you’d get away with this. It’d probably be a deceptive trade practice, probably be shut down right away based on my experience as a lawyer. But in Canada, apparently, it is okay, or at least they’re getting away with it for the time being.
What’s been your experience? Have you had similar situations like this? I would love to hear about it in the comments. By the way, let me know how we’re doing. Give some thumbs up or thumbs down. Let me know what you’re thinking. Like this thing on YouTube, McBride for Business YouTube channel. Subscribe over there so you can get some other videos too. Check out the R. Shawn McBride fans and audiences pages. Let me know how I can help you. Maybe I can come in and speak at your next conference and event. Maybe I can sit down and coach with your organization one-on-one or as part of training. What can I do for you? How can I make it better? Go over to mcbrideforbusiness.com, get your business evaluation checklist, and get your business to the next level. I’ll be talking with you again very soon. It’s R. Shawn McBride signing off. I can’t wait to talk to you again.
Let me know how I can help you. Maybe I can come in and speak at your next conference and event. Maybe I can sit down and coach with your organization one-on-one or as part of training. What can I do for you? How can I make it better? Go over to mcbrideforbusiness.com, get your business evaluation checklist, and get your business to the next level. I’ll be talking with you again very soon. It’s R. Shawn McBride signing off. I can’t wait to talk to you again.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer david simmonds.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.