A Strange Business Model - Nickel & Diming Customers!
It's funny how things work out...
I had originally planned this post for last week, but didn't schedule it until tonight....Of course, one of the members of the CTP community posted something on Noise.App earlier today that fit the topic perfectly...
There seems to be a new business model online but not only in the online business world. I've seen this creep it's ugly head for a while now and thought it would be a great post on what not to do in business.
The nickel and diming of customers has become the new normal around the world.
This is when I first saw it, not online but doing every day shopping for my family...
Charging customers 5 cents for a plastic bag. The stores will say it's for the environment, but let's be honest. It's a revenue stream. The 5 cent a plastic bag model lasted for a few years an d now they have switched it up...To reusable bag which are a lot more than 5 cents each.
It may not seem like much, but I bet any of the offline businesses that have implemented this, have seen a pretty nice increase in revenue from it.
Let's bring it online, and what @jaylatour was ranting about above.
Another scummy practice businesses seem to be pulling especially in online marketing circles is what Jay spoke about. In affiliate marketing, we are used to having a threshold to reach before our commissions are paid. Standard practice now seems to be....Raise that threshold!
These two examples may seem like different ends of the spectrum but for me it comes down to this....
Businesses take their customers for granted. And instead of providing more value for those customers, they end up nickel and diming them to death.
For me, it's a head scratcher and I get it...Inflation, the cost of living, yadda yadda....But these kind of practices have been appearing in many businesses years before the 'COVID explosion and prices rising'. It's just greed and to me, an awful way to treat your lifeline...Your customers!
Why not do something special for them, maybe discounts for repeat customers, reward programs, things that actually make your customers feel valued?
Instead....We charge people 5 cents for a plastic bag and raise prices every chance we get.
I think something businesses can do to go against the grain and actually stick out from the crowd is, reward customers of course....But how about making a big deal about...Not charging you if you need a plastic bag to carry your groceries? Or promote the fact that prices are NOT rising and are actually going down?
Utopian thoughts maybe...But hey, when you see what your competition is doing and how little they value their customers, this should get your entrepreneurial thinking cap going at full speed!
Just asking yourself every day....
How can I show my customers that I value them and that I NEVER take them for granted?
Crazy business model, I know....
It's a big red flag that those programs are not legit and are in money troubles. At least to me. They pretty much know when people are getting close to threshold and keep that carrot in front of them till one day it just blows up and they get nothing.
It happens far too many times we'd like to admit!
!CTP
That is a crazy business model and it would definitely reduce how much I liked that service. If I can find an alternative that is better, I would probably just switch and they never realize it until it's too late and most people left.
Posted Using LeoFinance Beta
That's the beauty of free markets, we can always pick a better service!
!CTP
I have experienced that payout push model plenty of times. They give you cents and the payout is at 100 USD lol. Like it would reach 6 months worth of storing small cents. I think some business need to do all of that to survive while some are going to be doing fair business. We have to keep our eyes open in order to deal with them often. I noticed similar with SmartBCH and decided not to trust them anymore.
For sure, nothing wrong with a business trying to make a profit, but just the small nickel and diming is what is frustrating as a consumer.
!CTP
Setting a high minimum payout threshold is just so shady. Raises all sorts of red flags in my eyes. Also, if there has to be a threshold, it has to keep with the standards they are paying for the job. I've seen so many sites paying like a dollar or two and the payout threshold is set at $500, insane, an unfair.
At CTP, it's when you earn, you get paid. We don't hold a penny, it's your commissions, you should get them right away :)
Shameless self promotion lol
!CTP
Mate, the way people have been ignoring HIVE and our 2nd layer tokens despite this blockchain solving literally at least 90% of the problems people complain about, a bit bit of shameless self promotion is justified hehe! You keep up the good work with CTP!
I'm right there with ya. Always give more value than expected. Period. 😁🙏💚
Always, lead with value, you can't go wrong!
!CTP
Bingo, exactly, yes!
Crazy world indeed. It gives other businesses or your competitors an easier way to lure in your customers and take them away from you.
Nobody wants to be seen or feel like a cash cow that is been sucked dry. So they'll will leave whenever they have the chance.
The best business model, is to drive value to the customer, so they never look anywhere else.
!CTP
This is something that is becoming widespread in the industry. They say that they keep the prices but the yogurt that used to weigh 125 gr is now 120 gr, the pasta that came in 1kg packages now 800 gr, etc.
Ahhhh yes, there's another way they are just being slimey. Sucks but that seems to be the norm.
!CTP
Great thoughts. Mistakes by the competition are opportunity for us.
Absolutely true!
!CTP
Why would you treat your life line like a trash, I will just find my way.
Posted Using LeoFinance Beta
Beats me lol Weird people out there!
!CTP
A typical case of bad business, when new entrepreneurs take advantage of this type of cases, they will come to pick up the dissatisfied customers and start to increase their clientele, in my country this is happening, the old businesses that started with this politics have had to close their doors.
Just gives rise to the companies that do put their customers first!
!CTP
Congratulations @jongolson! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):
Your next target is to reach 29000 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
Complains about 5 cent bag, says nothing of milk doubling in price.
LoL, but really, the cents for bags this is most likely a tax that people somehow decided to vote yes for on some level, and out of the store owners hands. Most of the time you can just take the bags and noone will say anything. Self checkout for the win? LoL. But really, we all know you have 500,000 bags under the sink or next to the fridge for dog poop or "emergencies" that never come up. Just do what I do, keep a bag of bags in each car, take a few with ya each time you go in. Or be a manly man and hulk it all in one hand without needing a sissy bag! LoL. I prefer the smart guy route, and just make multiple trips, cuz lord knows my ass doesn't workout and can use the extra steps (and health benefits that comes with that glorious outside air). LoL.