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They are just running numbers. If raising the cost of coffee by $1 brings more profit, then why not? And they can roll back if it doesn't work. People who are c

They are just running numbers. If raising the cost of coffee by $1 brings more profit, then why not? And they can roll back if it doesn't work. People who are concerned by a $1 raise aren't particularly sticky anyway.

zug_zug 2y ago
Did you read the whole article? Because it turns out the manager just starts giving away the coffee for free, so whatever numbers somebody was pulling from the sales system were obviously incorrect. The problem with "running numbers" like so many other metrics is that they are usually run by MBA types who have a weak grasp of math and don't really understand the customers' psychology (often work in corporate offices that are nowhere near the stores).
- hnthrowaway0328 2y ago
  Yes I read the whole article. I don't see what's wrong here. The revenue didn't match so the manager changed practice. It's still running numbers.
  - CapcomGo 2y ago
    Because this short-sighted revenue focus is what leads to customer loyalty plummeting.
  - ThunderSizzle 2y ago
    Corporate probably doesn't know the manager started giving out free coffee, so the next time they look at numbers, Corporate won't be able to ever see a difference except that they weren't selling cups of coffee anymore
Zenzero 2y ago
Not all numbers can be run in isolation. One of the most valuable things a business can build is a sense of community around it. Businesses who attempt to extract each marginal dollar from any goodwill they have built will suffer in the long term.
listenallyall 2y ago
Unlikely that rolling it back would work, because all the regulars have stopped visiting. They wouldn't know about the price reduction. The few that did (or maybe there's a huge sign out front), would assume it's temporary. Dismissing this as "just running numbers" exemplifies management that has no idea who their customers are, their priorities, or why they choose that particular gas station over others nearby. It was rather obvious to the in-store clerks that the $1 coffee was a draw that often enabled another $5-10 in sales per visit, and since some of these people were daily customers, many of them contributed thousands annually. Try to get all of that back from an extra 1 dollar.

zug_zug 2y ago

Did you read the whole article? Because it turns out the manager just starts giving away the coffee for free, so whatever numbers somebody was pulling from the sales system were obviously incorrect. The problem with "running numbers" like so many other metrics is that they are usually run by MBA types who have a weak grasp of math and don't really understand the customers' psychology (often work in corporate offices that are nowhere near the stores).

hnthrowaway0328 2y ago
Yes I read the whole article. I don't see what's wrong here. The revenue didn't match so the manager changed practice. It's still running numbers.
- CapcomGo 2y ago
  Because this short-sighted revenue focus is what leads to customer loyalty plummeting.
- ThunderSizzle 2y ago
  Corporate probably doesn't know the manager started giving out free coffee, so the next time they look at numbers, Corporate won't be able to ever see a difference except that they weren't selling cups of coffee anymore

Zenzero 2y ago

Not all numbers can be run in isolation. One of the most valuable things a business can build is a sense of community around it. Businesses who attempt to extract each marginal dollar from any goodwill they have built will suffer in the long term.

listenallyall 2y ago

Unlikely that rolling it back would work, because all the regulars have stopped visiting. They wouldn't know about the price reduction. The few that did (or maybe there's a huge sign out front), would assume it's temporary. Dismissing this as "just running numbers" exemplifies management that has no idea who their customers are, their priorities, or why they choose that particular gas station over others nearby. It was rather obvious to the in-store clerks that the $1 coffee was a draw that often enabled another $5-10 in sales per visit, and since some of these people were daily customers, many of them contributed thousands annually. Try to get all of that back from an extra 1 dollar.