We've all seen those Progressive commercials with the car insurance shoppers literally "shopping" for car insurance, and the gimmick always seems to be "name your price." With a struggling economy, cost has become the primary means of competition among companies, although quality definitely remains a factor as well.
For one London restaurant, "name your price" has become a head turning idea.
Obviously, the U.K. is experiencing a slightly different economic situation than the United States. A recession is underway, and a "credit crisis" has affected everyone. The Little Bay restaurant has begun to make waves with its revolutionary pricing. Like Progressive Car Insurance, The Little Bay restaurant has adopted a "name your price" system.
Peter Ilic, the owner of four restaurants including The Little Bay, encourages his customers to evaluate the meal and service and to pay whatever they feel is appropriate.
Ilic boasts an increase in revenue because of customers' payment methods. Many will overpay in an effort not to offend anyone nor to feel embarrassed.
Peter Ilic reiterated his theory as he stated, "It just seemed the right thing to do with everyone under the cash and feeling pretty miserable."