Naga Chokkanathan

Why Not? — Value Of Time

Posted on: March 19, 2010

Ever wonder why our Desserts are so expensive, sometimes costlier than the main food itself?

Of course, they need to use lot of costly ingredients to make those tasty Gulab Jamuns and Other sweets, But that’s not the only reason.

Recently I was surprised to read (http://www.saurabhsahni.com/2010/03/why-are-your-gulab-jamuns-so-expensive/) that restaurants purposefully overprice their dessert menu, In fact it is part of a bigger pricing strategy.

It seems, on an average people spend 25 minutes for their main course, and another 20 minutes for desserts. It doesn’t matter if its sweets, or juice, or ice cream, or whatever, people spend their sweet little time treasuring the moment.

This means, someone occupying a table and having a single item for 20 minutes, blocks the opportunity for that restaurant to serve main course to someone else, and make more money, That’s why they overprice desserts, to recover at least some extra cost from you!

It’s refreshing to see how restaurants respect their time. We can take a lesson from them to respect our (office / free) time too. What could be our (time) pricing strategy?

(007)

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