Estimated reading time: 1 minute

The Right Approach: Is Exceptional Service Worth a 40% Cost Increase?

Introduction

“When did this happen?” I asked myself during a recent visit to my men’s only barber shop as I noticed that my $10 haircut was now $14. While I vaguely remember the price going up a little every couple of years, I really hadn’t been paying attention. This caused me to revisit an article I wrote 10 years ago and research whether this 40% cost increase was reasonable.

Background

Ten years ago, I wrote my first series of columns on Lean, and one issue focused on the topic of delighting the customer. The theme of the piece was on the benefits portion of the customer delight equation and highlighted one company that truly gets it: a small neighborhood business called The Barbershop. The customer delight aspect is well worth revisiting given today’s business environment and ever-increasing customer expectations. First, I will take you through a typical experience at The Barbershop from a guy’s point of view, which is important in this case because the customers are exclusively guys. Second, we will answer the question of the 40% cost increase over the course of the last 10 years.

To read the full version of this article which appeared in the June 2017 issue of The PCB Magazine, click here.