When is LO inappropriate? LO13831

Ray Evans Harrell (mcore@IDT.NET)
Tue, 03 Jun 1997 22:32:58 -0700

Replying to LO13817 --

Edwin Brenegar III wrote:

> I think this is interesting because McDonald's recently announced that
> their special promotion celebrating their establishment in 1955, by
> selling sandwiches at 55 cents, has actually diminished sales. Could they
> have foreseen this eventuality?

1) there are problems with beef, e coli, salmonela, mad cow, (not yet)
"Why are they REALLY lowering those prices?

2) if you could sell it so cheaply then why didn't you do it all along?
This went against the upgrade "Restaurant" image they have been selling
with the higher prices.

3) First they were selling hamburgers, now they are selling world wide
success. If it were me I would have raised the price to a nickel more
than the highest competitor and stressed the superior quality of Mcbeef,
beautiful restaurants, great help. Don't confuse the public. That is how
the Mason & Hamlin piano company outsold the Steinway years ago when they
were about to go under. The raised the price $800 above the Steinway and
found themselves the leader, but they couldn't keep the quality so they
lost on the product itself.

> Is it possible to change the way the corner gas station, convenience
> store,fast food restaurant and news stand function? I have my car
> serviced at the place where I get the best service. Attentive,
> informative and efficient. The price is equivalent to most other places.
> And that is not my car dealer, where I'm never sure that they have my best
> interest in mind, even though they tell me ever 30 minutes.

I loved the service in Manhattan when I had a well known Japanese auto.
It was clean, efficient and I never had a problem, on the other hand I
bought two American automobiles after that and the service in Manhattan
was geared to the big Limo customers and they kissed we single customers
off. Sell service, success and dependability. "Do what you say you
will." We don't care if you make a good profit as long as you tell the
truth. Did you believe McBeef? I didn't. I see heart attacks everytime I
walk past the place. My daughter however, is an expert on McBeef and the
others. She bought the 55 cent sandwich and saved the money for clothes.

I would make the point that this is a selling job with a psychological
component as well as knowing your market. I would say the same of getting
your personnel to do something that is good for them and the company.

Also the sports model for McBeef and all of the other fast food chains has
been a successful one in developing a team feel to the place. That has
been good for the community and the families whose children work in those
restaurants. They are serving a community educational service that has
brought extra value to them in their place in the community. The only
issue is as Stever points out, the limitation of both advancement and
compensation. There are however waiters in NYCity Restaurants who have a
professional life and earn a better living than many lower management.
One could make a case for moving from McBeef up the chain to more stable
earnings and a long term job. Anybody see the movie, the "Big Night?"
All the questions are there.

Ray Evans Harrell, artistic director
The Magic Circle Chamber Opera of New York
mcore@idt.net

-- 

Ray Evans Harrell <mcore@IDT.NET>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>