The economic world is in tatters, your business is failing and your bank manager is knocking on the door asking for the banks money back.
What do you do?
One entrepreneurial London restaurant owner thinks he has the answer, by asking his customers to pay what they feel the meal was worth. His reasoning behind this is that like so many top London restaurants his own are very pricey and attracted accordingly top business execs, with their top all-expenses paid tabs. In a recession company expenses are the first thing to get monitored and shelved and as a result lunch is now more likely to be a sandwich than lobster thermidor.
At the end of their meal Peter Ilic’s diners are now presented with a bill showing zero, and if they so desire they can get a free lunch. Already though the idea seems to be paying off with many customers paying 10-20% over what would be the asking price.
Could this be because us Brits would be too embarrassed to pay to little? Would this idea only work in England?
This business model has already been applied to films, theatre and music (Radiohead’s last album was Peter’s inspiration). Could it be applied elsewhere? If so are we really brave enough to ask million dollar customers to pay what they think a project or product is worth?
More importantly in a time of monetary desperation would your customers be honest enough to pay the right amount?
Full story here.