Thursday, March 29, 2007

 

Are you worth it?

You may have read by now about Terra Bite, a coffee shop in Kirkland, Washington that charges nothing. That's right. Order your latte, get a muffin, even come back in the afternoon for a cookie or sandwich. You're obligated to pay nothing.

There's simply a box on the counter for contributions. Terra Bite customers are asked to pay what they feel the product is worth.

Before Terra Bite ever came to be, Seth Godin wrote about the concept of "business by donation" in The Big Moo. It's a good exercise in ensuring that your business is truly delivering value to your customer.

The premise is simple. Imagine that global competition caused your company to rely on donations to survive. Your customers only pay what they think your product or service is worth.

Would your product be worth the price you charge? Could you command the same premium for your service?

If not, are you overcharging customers today? And if so, how do you deliver more value?

What would you do differently to survive?



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