Why Upcharges Are Bad Business


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Many businesses try to get that little extra from a customer by adding charges for small and sometimes unexpected “services”. I was recently staying at a Fairfield Inn in suburban LA when on my bill a charged appeared for parking. This was unusual since the lot was ungated and empty. I saw no sign saying there was a charge to park. To me, this reflects badly on the brand. What is the point of giving a free breakfast and Internet if they charge for parking?

I am not alone. Businessweek lists other outrageous upcharges:

  • $1 for leaving cheese off a burger- Outpost American Tavern in Dallas
  • $1 for no commercials before a movie- Sundance Cinemas in Seattle
  • $25 for visiting a relative in prison- Arizona Dept of Corrections
  • 49 cents for a bill ending in less than 50 cents…they round up! – Dutch Boy burger in Brooklyn

Upcharges are done by companies that have poor vision of their business. Look at the entire customer experience and the value they get. Adding surcharges never make a good lasting impression on the customer.

Republished with author's permission from original post.

Barry Moltz
Barry Moltz Group
Barry Moltz has founded and run small businesses with a great deal of success and failure for more than 15 years. Barry is a nationally recognized expert on entrepreneurship who has given hundreds of presentations to audiences ranging from 2 to 2,. His third book, BAM! Delivering Customer Service in a Self-Service World shows how customer service is the new marketing.


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