A conversation came up today on how it was odd that this particular restaurant was charging customers for tea when most other places of the same kind would offer it for free. In was rather expensive too as they charged each person one dollar. Normally at this place the fee would be waived. So when they were asked as to why they were charging this fee today the simple answer from the manger was that business was too good to give out discounts. What a funny reply I thought.
Granted from a profit point of view it doesn’t really make immediate sense to charge less if people are willing to pay more during a specific peak period. I was thinking though isn’t this also your best opportunity to get to get free word of mouth advertising? For example, I can imagine that there would be a bunch of people who would now tell others that this restaurant charges you extra for basic things that other places don’t. So in that sense they could actually lose more customers in the long run even though for this day they may make more revenue.
I would think giving a discount during either period can be a good thing as long as what you are offering suits the customer while giving them something to tell others about in a positive way. That’s as oppose to just treating it like a way to generate customers during a slow time. In many ways your discounts can either come across as simply like a desperate way to get more people or as like a legitimate gesture of appreciation to people who do business with you.