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Went to a small coffee shop that runs on a 'tip only' payment model and it's actually genius
I visited a place in Austin called The Oasis Cafe last month. They don't charge set prices for drinks, you just pay whatever you want at the end. I watched people drop $8 on a basic latte. The owner told me their average tip is 30% more than what they'd charge at a normal shop. It feels less like a transaction and more like you're supporting something real. Has anyone else seen this model work in other businesses?
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emery1920d ago
Oh man, I gotta push back hard on this one! @dianal94, your buddy's bike shop might work but coffee is different. This model only works for places with loyal regulars who feel guilty. New or shy customers end up overpaying because they're afraid of looking cheap. I watched a tourist at a similar place in Denver panic and drop twelve bucks on a drip coffee. The owner knows that social pressure does the work for them, not generosity. It's basically emotional manipulation dressed up as community vibes if you ask me.
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dianal9420d ago
I know a guy who runs a bike repair shop on a sliding scale and he says people usually pay more than his old flat rate. It kind of makes you want to be generous when you know nobody's forcing you.
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