Spending and Saving

Prices? They’re So Pre-Recession

If you’ve ever eaten at a restaurant and thought your meal wasn’t worth the price, this latest recession trend might be right up your alley.

When massive discounts and coupon deals aren’t enough, a growing number of businesses are letting customers take the wheel and pay whatever prices they see fit.

Community car washes have been encouraging customers to donate what they can for years. In the recession, restaurants, yoga studios, and even taxi cabs have started asking patrons to pay whatever they think the service is worth. After all, the thinking goes, it’s better for businesses to have customers paying a little less than staying at home and paying nothing at all.

Restaurants and Cafes: Was that rib eye really worth $30? Was the latte worth $4? One World Everybody Eats in Salt Lake City is among several restaurants that think you should decide—and pay donation-style. A growing number of cafes and restaurants are foregoing standard prices and allowing customers to “donate” whatever amount they see fit. Using a cash jar or customer-operated credit card machine, customers can pay for their purchases without anyone seeing the dollar amount. Restaurants offering this option include Terra Bite Lounge in Kirkland, Wash., Java Street Cafe in Kettering, Ohio, Tierra Sana in Queens in New York, and Little Bay in London. The setup seems to work especially well for forgetful regulars at coffee shops and cafes, who can drop money in a jar once a week and not have to worry about remembering their wallet for the next six days.

Yoga Studios: Exercise classes were among the first discretionary expenses many people cut out when the recession first began, which is one of the reasons yoga studios have gotten so creative in luring back their newly-frugal practitioners. At the Yoga Patch studio in Kansas City, Mo., adults and families alike can take part in scheduled “Pay What You Can” classes for whatever price they can afford, so long as they pay the rest back at a later date. There’s no formal agreement or rules, since the studio’s owner, Caren Lisondra, says she doesn’t “want money to get in the way of a yoga practice.”

Concerts: It’s not easy for lesser known bands to find fans willing to shell out $30 or more for a ticket right now, which is why a growing number of groups are trying out a “pay what you want” system and letting fans pick up tickets for just $1 to $20 a piece. Always the entrepreneurs, some bands—including the Calif.-based group Lotus—are offering incentives to fans who pony up $15 or more, like free music downloads online.

Taxi Cabs: In Vermont, serial entrepreneur Eric Hagan came up with the idea for a Recession Ride Taxi, asking customers to pay what they want for rides around town and even offering up complimentary trips and free drinks to regular customers. It’s too early to tell how well the plan is working out—financially speaking—but thanks to the mounds of press Hagan has gotten in recent months, it’s safe to assume that business has been brisk. Just don’t expect New York taxis to take this up anytime soon.

Tags: deals, eating, entertainment, spending, Spending and Saving