I got a post card in the mail today. A plumber will be in my neighborhood every Tuesday. If I make an appointment to have this plumber stop by, he’ll waive his usual service fee.
I’m calling this guy (let’s call him The Plumbing Guy). I’m calling him because I’d like to save a few bucks on some small plumbing jobs I’ve been putting off around the house. But I’m also calling him to talk to him about this incredibly smart business strategy.
Here’s why I think this approach is so smart.
First, it saves him lots of money. By scheduling all calls for one of his plumbers in a geographically compact area, The Plumber Guy saves gas money by driving less. He also generates increased revenues because shorter travel times between jobs creates time for more jobs in the day.
That’s smart business. Here’s what’s even smarter.
I know that the service fee represents an increase of about 30% since last winter. And I know that this plumber, and most of his competitors, have increased their service fee because of increasing fuel costs. But while every one else is saying, “Gas prices are soaring. You now must pay a 30% fuel surcharge for each plumbing job” this smart plumber is saying, “I would like to reward you with a discount if you behave in a way that helps me reduce my fuel costs.”
With most plumbers, I’m free to schedule my plumbing job at any time (as I always could), but I pay the service fee no matter what. My options don’t change, but the price goes up.
With The Plumber Guy I have a new option. I can save money by choosing to do something that benefits his business. If I schedule plumbing on Tuesdays he saves money and passes it on to me.
Offering customers choices makes good sense. It seems to me that it makes very good sense to offer discounts to customers who make choices that save you money.
Compare this with how the airlines have approached their fuel costs: increasing fares, reducing service, charging passengers extra fees for meals, drinks, and luggage. Does this make you more likely to fly? Does it make you happier when you do?
The airlines could adopt The Plumber Guy’s approach. Raise fares, sure. It has to happen. But instead of charging extra for everything, offer discounts for desired behaviors. Instead of setting a fare at $100 and charging $25 for the first bag and $5 for the snack pack, set the fare at $135 and offer a $25 discount for checking no bags and a $5 discount for choosing not to eat.
If you can get the same results by rewarding people rather than penalizing them, which do you think will create happier customers?
I’m going with The Plumber Guy.
