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Looooong time ago when I was young, I used to manage a fancy restaurant for a top chef. There were instances when we did stuff the wrong way and needed to apol

Looooong time ago when I was young, I used to manage a fancy restaurant for a top chef. There were instances when we did stuff the wrong way and needed to apologize to a customer. Some of the best way to apologize to a customer is giving something for free, show him some appreciation for his business and acknowledge that you made a mistake. I remember that once we gave 10% off his bill and after that customer walked away, the chef came to me and explained the wonder of discounts and free dishes. Basically the lesson was that the customer would have most likely walked away from the restaurant happier had he received a free dessert rather than getting a 10% discount. Another thought that struck me is that the food cost of that free dessert was less in value than the 10% off - even though the customer cost of that dessert had the same value of the 10% off. I'm glad I learned that lesson long time ago, today when I want to entice someone to make a sale I always prefer giving something away for free rather than giving a discount. That way I get a happy customer and I don't reduce my gross sales.

scott_s 14y ago
The other difference is that people often skip the dessert entirely - it's a pure indulgence. By giving them a "free" dessert, you're not only hitting the "free is always good!" part of their brain, but you're giving them an indulgent experience they probably would not have had otherwise. So then not only are they not mad about whatever the messup was, they may even be grateful.
- larrys 14y ago
  The other twist to this of course is when people are spending other people's money or when they are being treated. Each situation is different. An offer to take 10% a check if it is on an expense account is not the same as giving something to someone that is a bonus to them personally. I guess the best way to illustrate this would be with a hotel. Upgrading someone to a better room (at the same price) benefits them personally. Discounting the bill in that case generally would not be the same benefit or cause the same happiness to them.

scott_s 14y ago

The other difference is that people often skip the dessert entirely - it's a pure indulgence. By giving them a "free" dessert, you're not only hitting the "free is always good!" part of their brain, but you're giving them an indulgent experience they probably would not have had otherwise. So then not only are they not mad about whatever the messup was, they may even be grateful.

larrys 14y ago
The other twist to this of course is when people are spending other people's money or when they are being treated. Each situation is different. An offer to take 10% a check if it is on an expense account is not the same as giving something to someone that is a bonus to them personally. I guess the best way to illustrate this would be with a hotel. Upgrading someone to a better room (at the same price) benefits them personally. Discounting the bill in that case generally would not be the same benefit or cause the same happiness to them.