27 Jun 2010

Communicate well and you can raise your prices

Our local restaurant at work just increased prices by a whopping 20%. They never communicated about this and now the queues are very very short indeed.

The food there was always perceived by all my colleagues as ‘mediocre’ at best and even though they've improved the quality of the food, they haven't told anyone about it. The perception of them being a 'mediocre' restaurant is still there.

There’s a food court with 19 restaurants just five more minutes away and the prices are cheaper there so why would anyone eat food at this place.

Had the restaurant done a re-launch; refurbished the place a bit and gave it a different feel, then they could have helped change the perception. That would have been the first part of the change communication plan.

The next part could have been choosing the traditional method of informing via flyers or posters at the restaurant that the food was about to improve and why the restaurant had chosen to improve the food quality. They could have informed us that they had listened to the comments they had been getting from customers who said that we would be prepared to pay more for better quality food.

Then they would have needed to inform how the food had been improved whether through fresher goods or more environmentally friendly products.

But they did none of it. They just raised the price and it looks like it’s too late for this restaurant.

It would be an excellent communications experiment if they did back track and then retry the initiative in six months time backed up by a thorough communications campaign. Hmmm! I think need to make a call to a restaurant. Got to go.

Colm O'Callaghan is JG Communication’s Head of Operations so when he’s not blogging he’s looking after the day to day business at this wonderful communicaitons agency.
So, who’s JG Communication? We’re Sweden’s largest and, we think, ‘leading’ communications agency in Sweden. We help our clients have conversations with the people that matter most to them using the tools that matter most to us, words, sound and vision.

Andra bloggar om: ,

No comments: