10% Discount, Who Gives A Monkey's?

[KevinHunt]

I heard an interesting story the other day about a customer that used to be a regular at my old restaurant (Haus Munchen) who came to The Red Lion only once because he didn't get a 10% discount there, whereas he got it at Haus Munchen. I was quite surprised because he was a guy for whom the 10% didn't make a difference.  In fact he told me that. He didn't go back because of 'the principle' it seems.

Personally, I wouldn't care one way or another if I got 10% discount in a pub or restaurant, but it does appear that for some people it does make a difference, even if it is only because it makes them feel special. There were a few reasons why we didn't give a discount at The Red Lion, and I never really gave it a great deal of thought since then. So what do you think? Would it sway you, one way or another to go somewhere (not just my place) if you got 10% off?

[likite]

I think you'll find more people will come back more often if there's discount - human nature init.

[Ulysses G.]

I think you'll find more people will come back more often if there's discount - human nature init.

If a restaurant has good food and offers 10% off for locals, I do tend to eat there more often than the ones that don't.

[SeanMoran]

If I visit the same restaurant three or four nights a week, then it might be that I'm a fairly loyal customer, and over each week spend a fair bit more than someone who rocks up for a feed once in a blue moon.

Having some official 10% discount card that makes it so obvious that it defeats the subtlety of it would make me wonder if I was dreaming of Las Vegas, but loyalty goes both ways, and having a little knocked off the bill for the sake of frequent and regular custom is a nice way to further a good business/customer relationship IMHO. A subtle adjustment on the receipt goes a lot further than some blatant attempt. It shouldn't need to be spoken about at all.

[chiang mai]

Some folks are motivated more by the principles in an argument than by the financial aspect and I can relate to that. It sounds from what you have written that the customer you mentioned thought that he had a right to a continued discount by virtue of your ownership of both establishments, ahhh, communication!

But as for your question: of course discounts are nice to have but they will never ever persuade me to eat somewhere that I don't want to eat - if a restaurant has a good track record with me and they offer a discount, of course I will take advantage of it. If the track record is poor it doesn't matter how steep the cut, I won't eat there. Offered a discount at somewhere I've never eaten before, I might actually be a little suspicious, why is the discount being offered, is business that bad they have to offer it and if so, why is that. Damned if you do and damned if you don't, you probably can't win that one!

[cdnvic]

Somewhere on a Thai language forum, a double pricing thread begins.......

[KevinHunt]

It depends on the amount of discount. I have an Amari card, and that entitles me to a 50% discount when dining with one other person, so yeah, I like to use it to get good value. However, me and the misses hit Pasta Cafe quite often, and they give us a discount, even though we typically tip more than the amount of the discount, its still nice to look down at the bill and see the red DISCOUNT stamp, but it does not influence if we frequent the place. Even if they stopped giving us the discount, we would continue to go there.

I'll take that as a 'No' and remove you from the list.

[KevinHunt]

Somewhere on a Thai language forum, a double pricing thread begins.......

I often thought of it as that!!! I don't think those receiving it think that way though.

It could certainly be used as a justification for increasing the prices - tourists won't notice and locals get a discount so won't complain.

I wouldn't do that, of course - I am from Liverpool, after all.

Edited January 20, 2010 by KevinHunt

[basjke]

Somewhere on a Thai language forum, a double pricing thread begins.......

And why should that be?It doesn't say anywhere that the discount is given based on race as the Thai version of discount is the case in most places.

Edited January 20, 2010 by basjke

[alant]

i tend not to think of pubs and discounts but i do think of the relationship between a pub and its locals. this often includes some form of occasional hospitality that tends to, as it is not heavily advertised, be more for regulars than thepassing trade as it were. this could be difficult in an area where passing trade is a high percentage of possible customers. general lower prices have been succesfull but nothing beats an environment that you enjoy going to

[KevinHunt]

Somewhere on a Thai language forum, a double pricing thread begins.......

And why should that be?It doesn't say anywhere that the discount is given based on race as the Thai version of discount is the case in most places.

Interestingly, for Thai restaurants, regulars may get 10% and VIP's (who can well afford it) expect to get 20%, because they think they should be treated extra special.

[FatherF]

I would not go somewhere just for a discount, I would rather go somewhere because I like the food etc, one place i use regularly sometimes does not charge me for a few beers, that kind of makes it personal. and a nice surprise gesture!

FF

[basjke]

Somewhere on a Thai language forum, a double pricing thread begins.......

And why should that be?It doesn't say anywhere that the discount is given based on race as the Thai version of discount is the case in most places.

Interestingly, for Thai restaurants, regulars may get 10% and VIP's (who can well afford it) expect to get 20%, because they think they should be treated extra special.

I didn't say anything about a VIP but in my opinion getting a discount based on the frequency you attending the business or the amount you spending is positive in my opinion.

Discount based on which race you are is a no no.

Edit: did i mention the word opinion

Edited January 20, 2010 by basjke

[getgoin]

Discounts, coupons and loyalty cards generally do not work to increase ones business except for the short term. Nothing replaces good value. People like to know that they are getting good value whether or not they hold a particular card, frequent a location often or are of a particular persuasion.

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Better to let the guy go and buy some beers occasionally for the truly loyal customers.

That being said there is a guy going around town selling restaurants on a discount card. Use the card and save 10% on the entire bill, food and beverage.

[basjke]

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Sorry but what you are talking about is scamming people.The point of a discount card is giving loyal customers a discount not getting extra money from occasional customers.What kind of business you are in again.

[KevinHunt]

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Sorry but what you are talking about is scamming people.The point of a discount card is giving loyal customers a discount not getting extra money from occasional customers.What kind of business you are in again.

Getgoin didn't say that he does that and neither did I. It was merely an observation of what some places may do.

Edited January 20, 2010 by KevinHunt

[JUDAS]

If it was a pub/restaurant I visited regularly I wouldn't care about discount, after all, would I be a regular if I didn't like the place? Is a nice gesture though to occasionally get one "on the house" though still wouldn't affect how often I frequented.

[getgoin]

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Sorry but what you are talking about is scamming people.The point of a discount card is giving loyal customers a discount not getting extra money from occasional customers.What kind of business you are in again.

Customers are customers. Loyal customers will always be loyal. All customers are good customers.

Sure you want a discount.

[basjke]

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Sorry but what you are talking about is scamming people.The point of a discount card is giving loyal customers a discount not getting extra money from occasional customers.What kind of business you are in again.

Getgoin didn't say that he does that and neither did I. It was merely an observation of what some places may do.

I didn't even insinuate that you were doing this KevinHunt but Getgoin in my view let clearly shine out that it is common practice that if you want to give a discount to certain customers you will have to overcharge the others.

[femi fan]

There's the psychology...

If a punter likes going somewhere, and does so on a fairly frequent basis, and occasionally is offered a beer - or meal - by the owner of the establishment, this is good news. Not for the money, but for the will and hospitality given them. It strengthens their 'commitment' to the establishment, confirms to them that they enjoy going there. A stronger bond is created.

No discount, no worries. But the occasional deference by owner towards regular punter makes said punter feel good. And that's pretty important really! But in addition, it's difficult to be a regular somewhere without the owner usually being there, and therefore how the owner acts is important. Being affable and good for a chinwag is enough. An unexpected bonus is never unwelcome though.

On the other hand, punters who expect a discount... well, bugger off!

[KevinHunt]

What is the use of raising your prices so that you might offer a discount? You reward half and screw the other half. Is that proactive customer service?

Sorry but what you are talking about is scamming people.The point of a discount card is giving loyal customers a discount not getting extra money from occasional customers.What kind of business you are in again.

Getgoin didn't say that he does that and neither did I. It was merely an observation of what some places may do.

I didn't even insinuate that you were doing this KevinHunt but Getgoin in my view let clearly shine out that it is common practice that if you want to give a discount to certain customers you will have to overcharge the others.

That's not how I read it. I thought he was against the idea. I re-read it and I still think that.

[manjara]

I used to drink i n a small bar in Portugal run by a Dutch guy. He used to do a 'shots' round for regulars, by ringing a special bell and then lining up about 8 shots on the bar. I was included in the group after I'd been going for a bit, and the funny thing was that most of the group used to buy rounds of shots back for the group, so that over the course of a month, the bar probably made money on it (though he never used to charge much for a shot round).

It kept me drinking there, because it was acknowledgement that you were local/regular and was worth much more than the cost of the drinks (evidenced by the fact that we used to spend more buying drinks back!)

PS. I'm now sueing for liver damage!

Edited January 20, 2010 by manjara

[basjke]

That's not how I read it. I thought he was against the idea. I re-read it and I still think that.

You are both sponsors of this forum aren't you? ( where's the winking eye emoticon when you need it)

Maybe it is my misunderstanding so let's rest the case

[KevinHunt]

I used to drink i n a small bar in Portugal run by a Dutch guy. He used to do a 'shots' round for regulars, by ringing a special bell and then lining up about 8 shots on the bar. I was included in the group after I'd been going for a bit, and the funny thing was that most of the group used to buy rounds of shots back for the group, so that over the course of a month, the bar probably made money on it (though he never used to charge much for a shot round).

It kept me drinking there, because it was acknowledgement that you were local/regular and was worth much more than the cost of the drinks (evidenced by the fact that we used to spend more buying drinks back!)

PS. I'm now sueing for liver damage!

Is he still alive, I wonder. 

A thought just occurred to me - some expats are more price conscious than the rest of us, and quite a few of them are getting by on pensions that aren't worth as much now because of exchange rate variations. Maybe a 'pensioners' discount is what we need.  No need for me to make out discount cards - just show your Pension Book or Bus Pass to qualify.

[basjke]

I used to drink i n a small bar in Portugal run by a Dutch guy. He used to do a 'shots' round for regulars, by ringing a special bell and then lining up about 8 shots on the bar. I was included in the group after I'd been going for a bit, and the funny thing was that most of the group used to buy rounds of shots back for the group, so that over the course of a month, the bar probably made money on it (though he never used to charge much for a shot round).

It kept me drinking there, because it was acknowledgement that you were local/regular and was worth much more than the cost of the drinks (evidenced by the fact that we used to spend more buying drinks back!)

PS. I'm now sueing for liver damage!

Is he still alive, I wonder. 

A thought just occurred to me - some expats are more price conscious than the rest of us, and quite a few of them are getting by on pensions that aren't worth as much now because of exchange rate variations. Maybe a 'pensioners' discount is what we need.  No need for me to make out discount cards - just show your Pension Book or Bus Pass to qualify.

I hope that was tongue in cheek.I retired when I was 32 years old,so I'm a pensioner though I don't receive any compensation.I live in Thailand for the past 15 years and don't have to care in the slightest way about the exchange rates now or in the foreseeable future.However i appreciate when some restaurant or any other business offers me a discount because I choose their service over the other hundreds available at any given time.

[Thakkar]

Do web forums give discounts? If so, can I get a discount on mentions of 'Red Lion'

Can the forum software replace every tenth mention of 'Red Lion' with, say, 'overt self-promotion'?

Excuse the lengthy post that follows, but Kevin (proprietor of the 'Red Lion') might appreciate this.

Mrs T and I worked long hours and ate most of our meals out in HK. One restaurant we frequented recognized us a regulars and one day the captain whom I often had short exchanges with about the weather, the stock market, racing tips and whatnot, asked if we'd fill in a form for a discount card they were offering to regulars. Never missing a chance to look a gift horse in the mouth, I asked why they'd want to do that since 'regulars' were, well, regular clients anyway?

He said they'd tried this at another branch and found that regulars came more often and more often brought friends along as well. Staff reported that tips also improved.

Since the restaurant already had a 10% service charge, a 10% discount would have seemed stingy, so they were offering 15%. Did we consequently go more often? I have no idea because I didn't keep tabs, but I did notice Mrs. T being less stingy with her tips.

--

Chinese restaurants often have a 'tea charge' levied on a per head basis. Many restaurants exempt this charge for regular customers (the captain usually decides this). It's never publicized though. The waiter or captain merely announces the exemption in passing when he brings the bill. A gesture of generosity often has the effect of making the other party feel generous as well, so tips, I'm told, improve.

Will giving a modest discount to regulars improve business overall for the 'Red Lion'? It would be an interesting experiment. Perhaps like a pizza joint, the Red Lion could sell a one year discount card called the Red Lion card. It could be Red with the picture of a Lion. Or white with the picture of a Red Lion.

A coffee stand at Carfour food court has a novel approach, like a lottery. Recently I bought a coffee there and was asked to pick a stapled chit from among others in a mug. I unstapled the chit to find that my next coffee, if I present the chit, will cost 6 baht less. Glory, glory. I don't know how the Red Lion could implement this but I though I'd throw it in anyway.

Twenty years ago, at a crowded strip club in Honolulu, where clients paid upfront every time they ordered a drink, the ka-chinking at the till would occasionally slow (I happened to be sitting at the bar, next to the till). Sometimes when that happened, the manager would announce over the PA system: "any drinks ordered in the next five minutes gets two for one" and the tills would resume their ka-chinking.

Is any of this relevant to the 'Red Lion'? I don't know, I'm just shooting the breeze here with a glass of Red (not Lion) and nothing much to do, but I hope as a regular utterer of 'Red Lion', I get a discount from the Forum proprietors.

Or visitors could discount this entire post.

In closing, I'd just like to say: 'Red Lion'

Edited January 20, 2010 by Thakkar

[harrry]

I look on regular customers getting a discount as fair. Attracting new customers costs money....Even Kevin has to pay to attract us from TV. I probably appreciate the business that gives me a discount..though it would not make me go there if it was not a good one. What it can do is tip the scales in favor of my going to the place that gives the discount when there are two similar choices.

The more often people come the cheaper the individual cost of advertising him becomes. So as long as the food and service is ggod I think it can be good business to give this.

Edited January 20, 2010 by harrry

[KevinHunt]

Do web forums give discounts? If so, can I get a discount on mentions of 'Red Lion'

Can the forum software replace every tenth mention of 'Red Lion' with, say, 'overt self-promotion'?

Excuse the lengthy post that follows, but Kevin (proprietor of the 'Red Lion') might appreciate this.

Mrs T and I worked long hours and ate most of our meals out in HK. One restaurant we frequented recognized us a regulars and one day the captain whom I often had short exchanges with about the weather, the stock market, racing tips and whatnot, asked if we'd fill in a form for a discount card they were offering to regulars. Never missing a chance to look a gift horse in the mouth, I asked why they'd want to do that since 'regulars' were, well, regular clients anyway?

He said they'd tried this at another branch and found that regulars came more often and more often brought friends along as well. Staff reported that tips also improved.

Since the restaurant already had a 10% service charge, a 10% discount would have seemed stingy, so they were offering 15%. Did we consequently go more often? I have no idea because I didn't keep tabs, but I did notice Mrs. T being less stingy with her tips.

--

Chinese restaurants often have a 'tea charge' levied on a per head basis. Many restaurants exempt this charge for regular customers (the captain usually decides this). It's never publicized though. The waiter or captain merely announces the exemption in passing when he brings the bill. A gesture of generosity often has the effect of making the other party feel generous as well, so tips, I'm told, improve.

Will giving a modest discount to regulars improve business overall for the 'Red Lion'? It would be an interesting experiment. Perhaps like a pizza joint, the Red Lion could sell a one year discount card called the Red Lion card. It could be Red with the picture of a Lion. Or white with the picture of a Red Lion.

A coffee stand at Carfour food court has a novel approach, like a lottery. Recently I bought a coffee there and was asked to pick a stapled chit from among others in a mug. I unstapled the chit to find that my next coffee, if I present the chit, will cost 6 baht less. Glory, glory. I don't know how the Red Lion could implement this but I though I'd throw it in anyway.

Twenty years ago, at a crowded strip club in Honolulu, where clients paid upfront every time they ordered a drink, the ka-chinking at the till would occasionally slow (I happened to be sitting at the bar, next to the till). Sometimes when that happened, the manager would announce over the PA system: "any drinks ordered in the next five minutes gets two for one" and the tills would resume their ka-chinking.

Is any of this relevant to the 'Red Lion'? I don't know, I'm just shooting the breeze here with a glass of Red (not Lion) and nothing much to do, but I hope as a regular utterer of 'Red Lion', I get a discount from the Forum proprietors.

Or visitors could discount this entire post.

In closing, I'd just like to say: 'Red Lion'

A quick count has you mentioning Red Lion nine times(?) - well done. Time was when placing those two words together would have resulted in a ban!! It may qualify you for a discount card irrespective of the outcome of this discussion.

A very good post with some good points. Thanks for taking the time.

[Thakkar]

Do web forums give discounts? If so, can I get a discount on mentions of 'Red Lion'

Can the forum software replace every tenth mention of 'Red Lion' with, say, 'overt self-promotion'?

Excuse the lengthy post that follows, but Kevin (proprietor of the 'Red Lion') might appreciate this.

Mrs T and I worked long hours and ate most of our meals out in HK. One restaurant we frequented recognized us a regulars and one day the captain whom I often had short exchanges with about the weather, the stock market, racing tips and whatnot, asked if we'd fill in a form for a discount card they were offering to regulars. Never missing a chance to look a gift horse in the mouth, I asked why they'd want to do that since 'regulars' were, well, regular clients anyway?

He said they'd tried this at another branch and found that regulars came more often and more often brought friends along as well. Staff reported that tips also improved.

Since the restaurant already had a 10% service charge, a 10% discount would have seemed stingy, so they were offering 15%. Did we consequently go more often? I have no idea because I didn't keep tabs, but I did notice Mrs. T being less stingy with her tips.

--

Chinese restaurants often have a 'tea charge' levied on a per head basis. Many restaurants exempt this charge for regular customers (the captain usually decides this). It's never publicized though. The waiter or captain merely announces the exemption in passing when he brings the bill. A gesture of generosity often has the effect of making the other party feel generous as well, so tips, I'm told, improve.

Will giving a modest discount to regulars improve business overall for the 'Red Lion'? It would be an interesting experiment. Perhaps like a pizza joint, the Red Lion could sell a one year discount card called the Red Lion card. It could be Red with the picture of a Lion. Or white with the picture of a Red Lion.

A coffee stand at Carfour food court has a novel approach, like a lottery. Recently I bought a coffee there and was asked to pick a stapled chit from among others in a mug. I unstapled the chit to find that my next coffee, if I present the chit, will cost 6 baht less. Glory, glory. I don't know how the Red Lion could implement this but I though I'd throw it in anyway.

Twenty years ago, at a crowded strip club in Honolulu, where clients paid upfront every time they ordered a drink, the ka-chinking at the till would occasionally slow (I happened to be sitting at the bar, next to the till). Sometimes when that happened, the manager would announce over the PA system: "any drinks ordered in the next five minutes gets two for one" and the tills would resume their ka-chinking.

Is any of this relevant to the 'Red Lion'? I don't know, I'm just shooting the breeze here with a glass of Red (not Lion) and nothing much to do, but I hope as a regular utterer of 'Red Lion', I get a discount from the Forum proprietors.

Or visitors could discount this entire post.

In closing, I'd just like to say: 'Red Lion'

A quick count has you mentioning Red Lion nine times(?) - well done. Time was when placing those two words together would have resulted in a ban!! It may qualify you for a discount card irrespective of the outcome of this discussion.

A very good post with some good points. Thanks for taking the time.

Actually, it's exactly eleven mentions—in my generosity, I'd decided to give *you* a 10% top up from the ten mentions I had originally planned. You're welcome.

[Donnyboy]

dont give a rats razoo about 10% discount, just rather have some free water