Serve the Underserved

According to an AP article appearing in today’s Miami Herald, a highly unusual event for American retailing occurred within the past few days: Dawn Frierdich, age 52, wanted to purchase three loaves of Panera bread and an iced tea. But when she asked how much it would cost, she was told by cashier Michael Miller, age 21, she didn’t have to pay anything if she didn’t want to.
     What’s going on here? “Flexible pricing” is an accepted retailing practice, in which different customers are charged different prices for the same item or service. However, in flexible pricing, the charge is generally thought of as based on criteria such as the size of the order or the prior business relationship with the customer. Quantity discounts and introductory offers.
     Another variety of flexible pricing involves the shopper bidding a price that is then accepted by the seller. In the case of Ms. Frierdich, it happens that the seller would accept a bid of any amount, no matter how small.
     The back story is that Panera Bread Co. has opened the first of many planned stores to serve the underserved. The concept is by no means new. I remember when I was a young kid, my Uncle Jack—an attorney who was as interested in justice being served as in charging prevailing rates—would take me to eat at Clifton’s Cafeteria on Olive Street in Los Angeles, where a neon sign flashed “PAY WHAT YOU WISH.”
     In my opinion, each retailer has an obligation to help their community. At the base, this means respecting business fundamentals so that you maintain profitability sufficient to stay open. You can’t serve your customers and employees if you close your doors. Beyond this base, though, always have in mind ways you can provide service to the underserved.