(Spokane, WA) Store tells customers to pay what they want

[sabra]

Source: kxly

SPOKANE -- A Spokane business is trying to help out those who are suffering during these tough economic times, by letting people pay what they want to.

David Madvin owns a tanning salon along Cheney-Spokane Rd. and over the past few months, he noticed that his clientele was shrinking as the economy got worse. To combat this problem, Madvin decided not to raise prices, but instead ask people what they you want to pay.

Madvin says he has lost a lot of money due to this sluggish economy, and he is trying to figure out what to do about it.

...

Madvin says he does not mind taking the hit to his bottom line, as long ad the business is coming in.

"And I mean, I will take a quarter if that's all you got," Madvin said.

Since Madvin started the pay what you want program, his business is up by about 10%.

Read more: http://www.kxly.com/Global/story.asp?S=9942764

[closeupready]

1. That's a nice gesture, but I couldn't take advantage of it.

Certainly not for tanning sessions. If it was a grocery store and I were poor and hungry, perhaps I would, but I would find a way to repay in full, later on, when I had money.

[liberal N proud]

2. Two comments:

1. It is an inventive way to keep your customers if your bottom line can stand the loss in revenue.

2. You may not be able to pay the mortgage but for a quarter you can look like you went to Florida for the winter.

[RaleighNCDUer]

8. re: if the bottom line can stand the loss in revenue -

He already HAS the loss in revenue. What he's doing is helping create a customer base that will reward him in better times, if he manages to stay in business until recovery. He already has the equipment, so now his overhead is mostly the power bill and employee compensation (unless, of course, he's still paying for the equipment) - and it's unlikely that the slight increase in the power bill is going to be greater than the added revenue.

Smart move.

[tridim]

3. Why would anyone want to pay for elective skin cancer?

Besides Boner of course.

[Liberal_in_LA]

11. my thought also.

[ozu]

4. Terra Bite

A coffeehouse in Kirkland, WA does something similar, but it was also founded by a rich Google employee who can probably afford to float the rent if need be.

I don't know if this particular one is actually profitable or not.

[madmom]

5. I got a phone call this morning from a local video store. They said since they

haven't "seen" me in a while they were offering a 2 for 1 video rental. They specifically asked for me by name.

[Soylent Brice]

6. only 10%??

you'd think there'd be a HUGH spike.

i guess no one gives a fuck about tans in WA, which sounds reasonable enough to me.

[Sequoia]

7. They might but only because there isn't enough sunshine

to keep them happy. As we all know Washington has the highest sucide rate in the nation. I lived in Spokane for 4 years and couldn't wait to leave. It was very, very depressing to live there.

[HarukaTheTrophyWife]

9. If it was in NJ, his business would go about 100%

We loves our tans.

[No Elephants]

10. This is a tanning salon, not a "store." It's different from a store owner's making

that same offer as to items for which the store owner has paid out of pocket. If this guy owns the building out of which his salon operates and his tanning machines, he may be able to stay in businesss. Otherwise, rent alone may get him.