Interested in your opinion

[Prowsey]

This is completely off topic, but interested in people's view point.

(and if I can work out how to do a poll, I'll do that too).

A bit of context:

As many of you know, I own a café (and no, this isn’t an advertisement for it).

Since taking over the café a bit over 2 years ago, I’ve kept my coffee prices and main menu items around the same price.

In that time, and particularly over the last 12 months all of my costs (including wages), have gone up significantly – e.g. my electricity bill for last month was over $3k.

I finally bit the bullet and raised all my prices, to coincide with our new menu.

Coffee went up by 50c (although if you bring your own cup you get a 50c discount).

And all of our food items went up by a dollar or two (e.g. our BnE roll is now $9, rather than $8).

Overwhelmingly all of our regulars and semi-regulars have accepted this price rise with good grace and understand (I think) the conundrum I was facing. The business just wasn’t sustainable, with every cost rising by well over 10% p.a..

Anyway, one of our regulars came in yesterday, while I was in the café and when he was informed of the price rise, said “$4.80!...sorry”, picked up his money and left.

Will honestly say it threw me for a bit of a six…not sure why.

Possibly because I’ve studied Economics, and have been in business for over 30 years and understand the demand / supply coefficient quite well, coupled with the substitution effect.

So…with that boring preamble out of the way, my question (if I can get this silly poll thing to work is:

 

[Pplspoet]

I just tap my card. No idea how much my local cafe and coffee place charges me.

 

[bunnytragic]

Prowsey I grew up in the 1950/1960's in my parents' mixed business and saw how hard it was to make a living. As I became old enough to help out I got to emulate my father's take on dealing with customers and back then we had a competitor right opposite us on the other side of the road. Back then dad opened 7 days a week from 8.00am to 8.00pm with a short break on Sundays for lunch and going out to visit family. We had all sorts of 'gripes' from customers about our prices ( we bought from Campbell's Cash and Carry) and we would hear that Woolworths and Coles supermarkets were cheaper than us. Back then of course they didn't open 7 days a week or have Thursday night shopping so we were truly 'convenience' stores. We didn't gouge but we just didn't get the preferential discounts that the majors obviously could demand and receive. We were part of the local community and our devoted supporters would support us and became not just customers but family friends. The times have changed significantly obviously since then as have the options but that experience led me to my current calling of 36 years; working in customer service. What I have learnt is that you cannot please everybody but you need to be open and transparent with your patrons. Those that are 'loyal' will be empathetic and support you; those that aren't will change from outlet to outlet. You have to survive and do what is needed to do so. I may be in the minority but my response is coloured by my upbringing. Hope this helps. George

 

[HarryofOz]

I have never complained or stopped being a customer at a small business because they raised their prices. Especially if they haven't been raised in two years.

Obviously businesses face rising costs and their prices go up - especially small businesses.

I have only ever stopped going to a business that I'd been using for a while when I heard my barber and another customer expressing their admiration for Trump and Abbott

 

[marty17]

I believe if a business owner incurs a cost increase you should explain immediately that is why your prices are increasing.

 

[Bluey]

As an older Aussie 61 i cant get my head around paying 5 bucks for a coffee, maybe you could keep the coffee price as it was before but lift the prices of the food you serve.

 

[Shauno]

In Townsville where I travel often for work, a large cappuccino is $6.50

 

[Prowsey]

As an older Aussie 61 i cant get my head around paying 5 bucks for a coffee, maybe you could keep the coffee price as it was before but lift the prices of the food you serve.

You’re only 2 years older than me! And I’m middle aged!

I won’t bore you with coffee prices in Sydney, but trust me when I say I’m one of the cheapest in Redfern (not the cheapest).

And I did consider that, but the challenge is that I serve a diverse range of people, including those on fixed incomes and I have tried to minimise the price rises on food as well.

While it’s a minor thing to a lot of us on here, for people on fixed incomes, it’s bloody tough out there.

I had to put my prices up, but I hated doing it.

 

[Prowsey]

Prowsey I grew up in the 1950/1960's in my parents' mixed business and saw how hard it was to make a living. As I became old enough to help out I got to emulate my father's take on dealing with customers and back then we had a competitor right opposite us on the other side of the road. Back then dad opened 7 days a week from 8.00am to 8.00pm with a short break on Sundays for lunch and going out to visit family. We had all sorts of 'gripes' from customers about our prices ( we bought from Campbell's Cash and Carry) and we would hear that Woolworths and Coles supermarkets were cheaper than us. Back then of course they didn't open 7 days a week or have Thursday night shopping so we were truly 'convenience' stores. We didn't gouge but we just didn't get the preferential discounts that the majors obviously could demand and receive. We were part of the local community and our devoted supporters would support us and became not just customers but family friends. The times have changed significantly obviously since then as have the options but that experience led me to my current calling of 36 years; working in customer service. What I have learnt is that you cannot please everybody but you need to be open and transparent with your patrons. Those that are 'loyal' will be empathetic and support you; those that aren't will change from outlet to outlet. You have to survive and do what is needed to do so. I may be in the minority but my response is coloured by my upbringing. Hope this helps. George

Thanks for sharing that…very interesting reading.

I’ve tried to support my local stores as much as possible, as they were squeezed by the continual encroachment of the majors.

The great majority of my (regular) customers are like family to me. I’ve gotten to know some wonderful people from all walks of life.

One of my favs is a guy called Paul. One of life’s true gentlemen, who has come to my cafe most days for 2 years. He’s one of the ones on a fixed income, that I’m most worried about.

Anyhoo…I know I’m overreacting and I appreciate the comments in support on here.

 

[Reggy]

Can't plan for tightarses.

 

[cmorrison9]

Hi Prowsey,

If costs go up, your price has to as well.

I hated doing it too.

When I started painting, you could get a 15L drum of ceiling white for $60.
The price now for the same thing is about $200 and that’s not the premium.

At the end of the day, back yourself to provide the best service, the best tasting coffee, in a good atmosphere, people will pay for quality.

 

[ASH1908]

This is completely off topic, but interested in people's view point.

(and if I can work out how to do a poll, I'll do that too).

A bit of context:

As many of you know, I own a café (and no, this isn’t an advertisement for it).

Since taking over the café a bit over 2 years ago, I’ve kept my coffee prices and main menu items around the same price.

In that time, and particularly over the last 12 months all of my costs (including wages), have gone up significantly – e.g. my electricity bill for last month was over $3k.

I finally bit the bullet and raised all my prices, to coincide with our new menu.

Coffee went up by 50c (although if you bring your own cup you get a 50c discount).

And all of our food items went up by a dollar or two (e.g. our BnE roll is now $9, rather than $8).

Overwhelmingly all of our regulars and semi-regulars have accepted this price rise with good grace and understand (I think) the conundrum I was facing. The business just wasn’t sustainable, with every cost rising by well over 10% p.a..

Anyway, one of our regulars came in yesterday, while I was in the café and when he was informed of the price rise, said “$4.80!...sorry”, picked up his money and left.

Will honestly say it threw me for a bit of a six…not sure why.

Possibly because I’ve studied Economics, and have been in business for over 30 years and understand the demand / supply coefficient quite well, coupled with the substitution effect.

So…with that boring preamble out of the way, my question (if I can get this silly poll thing to work is:

Can i ask why your monthly elec bill is $3k. Maybe i can help you with that.

 

[mistert]

Thanks for sharing that…very interesting reading.

I’ve tried to support my local stores as much as possible, as they were squeezed by the continual encroachment of the majors.

The great majority of my (regular) customers are like family to me. I’ve gotten to know some wonderful people from all walks of life.

One of my favs is a guy called Paul. One of life’s true gentlemen, who has come to my cafe most days for 2 years. He’s one of the ones on a fixed income, that I’m most worried about.

Anyhoo…I know I’m overreacting and I appreciate the comments in support on here.

maybe a pay it forward for him - I could donate maybe 10 coffees for him

 

[brend]

if anyone ever complained about that it probably just deserves a “yep that’s the way the worlds going” type reply.

I’ve never stopped going to a cafe if there’s a hike in price. But I do start to question myself and my purchases more. “Can I really justify $5 every day on a coffee? $35 a week or $150 a month at the moment probably not. And I could do with the break in caffeine. Save some money. Have coffee 2 times a week instead.”

I’m making a healthy decision but the small business owner who did nothing wrong loses a regular client to part time.

 

[thebestsince1908]

I think most people with half a brain would realise you’re not trying to gouge them and that times are going to get tough and everything is going to get more expensive, you’re not to blame it’s the dills in power with no idea who make grandiose statements that will never come to fruition. Give it a couple of years and see unhappy the population will be about the path we’ve been taken down.