Up-sell or Rip-off? Can you tell the difference?
On a recent trip to Italy I had an interesting experience.
I trust most of you have heard of or been to the lovely town of Rapallo in Italy.
If not, you should (despite of what I am going to write in a minute) look it up. The place is only half an hour from Portofino by ferry (saving you a long drive and exorbitant parking fees).
So what is it I am going to complain about? Not the parking fees in Rapallo obviously (a dayâs parking right in the centre of town would buy me 30 minutes at the Manly beach front here).
In a another blog I am working on I write that we should not be afraid (or ashamed) of running a business. Part of that is trying to actually make a profit (I will blog about charities another time).
Those of you who have already spoken to me or my fellow Small Fishes would know that amongst the drivers of profit we have
- Revenue
- Productivity
- Cost
Thatâs putting it simply.
One way of raising the first is to Up-sell (Famous example: McDonalds allegedly makes 15% of its revenue by using the phrase âwould you like fries with that?â. I donât even have to prove that as I used âallegedlyâ ).
As most of you are familiar with the concept I wonât go into too much detail now.
Back to my story:
At the end of a beautiful day with my family we decided to look for a restaurant. While we were exhausted from all the sight-seeing it was still too early for the restaurants to open. So we headed straight for our first up-selling experience.
Ice cream is usually far cheaper and often superior in Europe to what we are used to here. So when we had a look at the prices, we decided that the second biggest should do. When I pointed to the sign and uttered the words âgrande â cinqueâ (large â five) the friendly lady picked up a container so large that I was afraid there would be left overs (not to mention brain freeze).
I was a little disappointed that the bill came to 30 not 20 Euros as expected. When I complained that I had ordered âgrandeâ she just muttered that the container she showed me was âMaxiâ. HmmmmâŠ
We sat in the park for a while and recovered from the brain freeze when we decided that it would be too long a wait for the restaurants to open. We would have a picnic instead.
So we headed to a nearby deli with a truly spectacular offering of unhealthy (not all of it), but delicious looking food. Admittedly the cheeses, the artisan breads and prosciuttos appeared a bit pricey, but whatâs that compared to a restaurant bill?
Again after picking and choosing from a variety of delicacies we arrived at the critical up-selling moment: trying touse my rather rusty Italian âtre etti di prosciutto cottoâ the woman came back at me with the question âIl meglio?â (the BETTER one?). Instead of thinking I was so overcome with my sudden language prowess that I eloquently replied âSiâ.
When presented with the cheque I was mildly surprised to see 45 Euro instead of the estimated 30, but then; no need to get worked up â we were on holidays after all.
The unpleasant surprise unfortunately had a sequel when we unpacked our goods and found that not only had we been charged a lot more than the listed prices, but also served with off-cuts of the salami. HmmâŠ
Without further dwelling on these admittedly first world problems I wanted to ask the question: where does the legitimate desire of a business owner to run a business and make a profit end and where does the rip-off start.
The people at both businesses could obviously tell I was a tourist and the likelihood of a blossoming long term business relationship was slim, but does that justify their behaviour? Even if you leave the ethical side of it out: Does short time gain outweigh the long term effects? When will your reputation suffer? The reputation of your whole industry (we all have some in mind I guess)? Your countryâs?
What do you think?
Letâs end this on a lighter note.
Warning: my kids would probably call this a âDadâs jokeâ.
I prefer to label it Philosopherâs joke instead.
Rene Descartes goes up to the counter. âIâll have a scone,â he says. âWould you like juice with that?â asks the barista. âI think not,â says Descartes, and he ceases to exist.
Hereâs a link for those with even more time on their hands (observe my colleagueâs postings on procrastination). Itâs from the Chaser guys and it lasts only 2 minutes đ and it deals with up-selling as well:
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See you later.