To *not* want to put my prices up?

[ImALittleTeashop]

I am a name change but I might keep this one :D
We run a tea shop and a separate bistro. Business is not particularly seasonal but it does attract more business in the summer months. I source local produce and due to my repeat and regular custom, manage to get good deals from suppliers.

But again this year, DH is banging on at me to put my prices up for the summer. My argument is that the locals keep us going all year round , why should they suffer because we have holiday makers here in the summer!?

AIBU? The places more than pay for themselves as they are, its not like we NEED to put prices up right now.

You could give the locals a loyalty card? 10th drink free? Would that cancel out that the price rise? Have to agree with your DH on the business side, but you are clearly wanting to keep the loyalty you already have.

Oh - second the loyalty card idea!

yanbu, if you put your prices up your local regular customes will stop coming back and will see the t-shop and bistro as 'money grabbing' and not a local friendly place to be.

If your going to put your prices up do it because you need to and do it all year round, not just for the summer

You could call it a 'staycation' clubcard'. Explain to the locals about the price rise as its more difficult to accurately predict trade with the holiday makers coming in throughout the summer, so waste is higher, therefore there will be a small rise in prices. To protect your regulars you've introduced a stay-at-home clubcard. If you explain it honestly and openly, they'll feel valued rather than swindled. The passing trade could have one to encourage them to visit you 10 times during their holiday if they wanted one.

POndering the name as that was crap...

Putting up the prices to rip off the tourists generate additional revenue may well result in you losing the valuable, all year round custom from loyal local customers. I realise that times are hard and money must be made to keep the business going but don't do something so blatantly cynical. Just increase prices for the whole year round.

Loyalty card would be a very good idea.

Also am very jealous of you. I dream about owning a tea shop

I was complaining about the prices of a farmshop near us and someone who lives even closer looked sheepish and confessed there is a 'local's card' which gets you money off their prices! I thought it was a good idea (but I want one now...)

yes, i like the loyalty card idea - it means that you can have a set price for regulars, regardless of the time of year.
have a separate price list and quote that if your customer gives you a loyalty card.

in my shop, i have a 10% discount card for loyal customers. they have to have been coming to me for ages before they get one - i judge it on how many visits, because then i get to recognise them!

I don't think it should be based on locality as that makes it exclusive, but on loyalty to encourage repeat visits. I know loads of farm shops with locals cards and it kind of annoys me - esp. as the one near me doesn't do it! I'd go to the one that valued my loyalty though.

Inflation is rising. Even if it seems now that your client base can handle the rise, will that be the case later in the summer?

You can tell your DH that correct and competitive pricing is good business.

I lived in a touristy area once and the local diner would give 10% discount to residents of the town.

That way you can get extra cash out of the one timers and keep your loyal customers happy!

But if your prices are too high, you'll put off the tourists too.

We haven't had a holiday for a couple of years and when we are on holiday we're still looking for value for money, not places that we think will rip us off.

I think it's wrong to charge tourists more.You have said that the business more than pays for itself, so it is just greedy to exploit people on holiday/visiting the area. If I felt I was being overcharged I would take my business elsewhere, so you could end up damaging a nice summer trade.Your prices should be fair, now more than ever,given that people are struggling and you are not

Yeah I agree with saslou... "tourists" are just people having a well-earned break, they might be watching the pennies too (I suppose this applies more if you're attracting British tourists rather than those who have the means to fly their families half-way around the world, don't know where your tea-shop is so can't comment). I also don't like the "locals card" idea... people talk as if there is a definite group of easily-identified "regulars", but is it that simple? I've never run a tea-shop or anything, but I've worked in shops in tourist areas and not recognised every repeat customer or necessarily known if they were from the area or not, likewise I'm sure there are local places I go to every now and again where the proprietor hasn't got a clue who I am. It feels like it would create an 'in-crowd' feel and risk making the other customers feeling like they are just there on sufferance to subsidise the exclusive locals club. I've got nothing against a simple loyalty card for anyone who want it, though. Hope I'm not being harsh, just going for honesty!

My father has 'minimum charge' for the busy hours of the busy season.
This is to avoid people occupying a big table between 12-3pm and ordering 2 coffees. It is not fair on you if because of them you have to turn down a big group of tourists that perhaps were going to have 2 course plus many drink.

Not a locals card, a loyalty card. That way it isn't specifically for locals, but it will happen that they will be the ones who benefit the most.

Customer loyalty will sustain your business, especially if the economic situation gets any worse. I live in a touristy area of the south west with a number bistros and tea shops. The locals hate it with a passion when businesses put their prices up for the summer. If you have to put prices up, I would second putting them up permanently, or alternatively introducing some more luxurious specials to tempt your customers. The loyalty card idea is a good one as well, even if it is just buy ten coffees and then get one free. That will cost you very little but is a nice gesture.

Thank you all! Flockwallpaper, we are in the same part of the country and I do see my competitors and friends inflating their prices for the summer and it seems very unfair!

I didn't consider a loyalty card, but that's a good idea! I could not really do a minimum charge as we do get a few sets of pensioners who meet here and I don't want to put them off.

Thank you all

I think that loyalty cards are a good idea, and/or other special offers that are open to everyone but will encourage repeat custom and be attractive to locals.

I think it's worth checking out the pricing of your competitors even if you decide not to put your prices up. Don't do yourself a disservice by underpricing, and if you're cheap in comparison to your competitors, then use your good value as a selling point.