Lower Service – Increase bottom line

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Lower Service – Increase bottom line

I have information on a facility that had a valet operation. They stopped it and in doing so lost about 180 customers. At the same time they reduced their costs (labor, etc) so much that their bottom line skyrockted. In addition after about 4 months their 180 came back.

It seems to me that they weren’t charging enough for the valet service. Perhaps they should have charged more. Or perhaps the traffic wouldn’t bear the increased fees. Reducing the service in the second case was certainly the thing to do. Operating at a loss is not a happy thing to do.

Sure, providing the service is great, but not at the cost of your business.

JVH

John Van Horn

John Van Horn

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