Valuetainment - November 20, 2018


Episode 214： Why We Pay 60$ For A 10$ Steak


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Length

11 minutes

Words per minute

230.51639

Word count

2,665

Sentence count

210

Harmful content

Hate speech

1

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Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Why do we pay $60 for a $10 stake at a high-end restaurant? Why do these restaurants charge so much less than the other places we go to restaurants? Why are they selling the same steak for $10 instead of $60?

Transcript

Transcript generated with Whisper (turbo).
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach
00:00:09.240 the sky, touch the stars up above, cause it's one time for the underdog, one time for the
00:00:16.240 underdog.
00:00:17.280 I'm Patrick B.W., host of Vieta Men, and today we're gonna talk about why you and I, why
00:00:21.160 we pay $60 for a $10 stake.
00:00:24.120 So one of the things I wrestle with as a CEO of a financial firm is how do we sustain the
00:00:28.180 level of growth that we're having as a company where just two years ago we're doing 500 policies
00:00:32.860 a month, then we go to 1,000 policies a month, now we're doing 3,300 policies in a month.
00:00:37.760 How do I sustain this and still maintain a good level of customer service and customer experience
00:00:43.940 for everybody?
00:00:44.780 This is my challenge, and by the way, I'm greedy.
00:00:47.080 I want both.
00:00:47.960 I want a massive explosive growth, and I want the best customer service experience on this
00:00:53.480 side.
00:00:53.760 Can you really pull this off?
00:00:54.940 So what I do to get better in these areas, I have to constantly be in a learning mode.
00:01:00.160 So the title of this is what?
00:01:01.600 Why do we pay $60 for a $10 stake?
00:01:04.280 Think about these restaurants and tell me if you've ever heard of any of these restaurants
00:01:07.620 or you've been to one of these restaurants.
00:01:09.380 You ever been to Maestro's?
00:01:11.100 You ever been to STK?
00:01:12.800 Fleming's?
00:01:13.840 610 Magnolia in Kentucky?
00:01:16.060 I don't know, La Vitrola out of Columbia?
00:01:17.980 Sparks out of New York?
00:01:19.560 Oya Sushi out of Boston?
00:01:21.640 I can give you a lot of them.
00:01:22.740 Ruth, Chris, have you been to these restaurants?
00:01:24.360 What do they have in common?
00:01:25.920 They're high-end restaurants.
00:01:27.680 You could go and spend $100 per person.
00:01:29.920 You could go and spend $300 for a couple just out going to dinner.
00:01:32.900 Just the other night we went to Eddie V's, and we spent $300 for two people.
00:01:36.860 You can go to the Alexander Steakhouse in San Francisco and spend $600 for two people.
00:01:42.840 Why do we pay for that, right?
00:01:44.700 And then on the complete opposite side, you've got Cheesecake Fact, you've got Applebee's,
00:01:48.320 you've got Chili's.
00:01:49.140 Why do these places charge so much less than the other ones?
00:01:52.260 The steak is the same steak.
00:01:53.760 I mean, the quality of steak's only going to be a $10 difference.
00:01:56.480 So if it's $10 one place, $20, why are they selling it for $60, $70, and we're willing
00:02:01.660 to pay for it?
00:02:02.540 Look, there's eight things that these guys do very well that I believe the volume restaurants
00:02:08.400 can also get better at if they trained and paid attention on this specific area.
00:02:13.360 Some do a good job, but most of them don't do a good job in this area.
00:02:16.220 So let me explain to you what I mean by these eight areas.
00:02:18.200 Number one, the first thing they do is they pay attention to details.
00:02:22.480 A big part of customer service and experience is paying attention to details.
00:02:26.660 So what do I mean by this?
00:02:27.960 If you go to a high-end restaurant, you'll typically have the hostess ask the following question.
00:02:33.360 They say, oh, it's great to see you here, Bob and Mary.
00:02:36.260 Oh, I can see you have a reservation tonight.
00:02:38.580 Are you here for a special event?
00:02:40.700 Is this a special evening here for you?
00:02:42.700 Yes, we're celebrating life.
00:02:44.440 Yes, it's our anniversary.
00:02:45.560 Yes, it's this.
00:02:46.380 They grab a card and they make a note.
00:02:48.860 Anniversary.
00:02:49.960 Birthday.
00:02:50.780 Okay?
00:02:51.440 Whatever it is.
00:02:52.340 And they write it on the note.
00:02:53.480 That note is given to the waiter.
00:02:56.400 The waiter gets the card that they put the order and they see anniversary.
00:02:59.880 They do their special treat for you because it's anniversary.
00:03:02.980 They do special treat for you because it's birthday.
00:03:05.320 On the computer, they put a note that it's your birthday and it's reminders every year because
00:03:10.900 of their CRM.
00:03:11.700 When this family's back, it's their birthday, it's their anniversary, they don't even ask
00:03:15.420 you about it because they're already seen in the system, right?
00:03:18.360 I go to a restaurant here on a regular basis.
00:03:20.500 It's called Neighborhood Services, right?
00:03:21.880 We go to this place, Neighborhood Services, and I probably go there twice a week.
00:03:25.640 It's close to the office and the service is phenomenal.
00:03:28.860 They know what I order.
00:03:30.060 Two things I order.
00:03:30.820 They know both my drinks.
00:03:32.240 They know the kind of oysters I like.
00:03:33.660 I don't like the Malpex that they bring. 1.00
00:03:35.200 I like different kind of oysters.
00:03:36.620 They know what kind of oysters I like.
00:03:38.060 They know what salad I order and they know the hake fish that I like and the way it's
00:03:42.980 made.
00:03:43.320 They know it.
00:03:44.080 They know what I like.
00:03:45.560 They know where I sit.
00:03:46.580 They know where I like to sit.
00:03:47.960 All of that stuff is paying attention to details.
00:03:50.960 I can pay a third of the ticket I pay there if I go to Yard House.
00:03:55.700 And they're 50 yards apart from each other.
00:03:58.000 But I go to Neighborhood Services because they pay attention to details.
00:04:00.820 That is an area you can also do within your business.
00:04:02.540 Number two, the second thing they do is service.
00:04:05.420 They make you feel special.
00:04:06.860 By the way, it doesn't take a lot to do this.
00:04:09.820 Making somebody feel special is the words you use.
00:04:13.080 Neighborhood Services says, Sir.
00:04:14.700 How are you, sir?
00:04:15.760 How are you, Patrick?
00:04:16.820 So it's either Sir or your first name.
00:04:18.880 You can go to Yard House.
00:04:19.820 What's up, man?
00:04:20.420 Hey, what's happening, bro?
00:04:21.320 Hey, what's...
00:04:21.940 It's different.
00:04:23.080 It's like, dude, don't call me.
00:04:24.620 What's up, bro?
00:04:25.200 You don't know who you're sitting with.
00:04:26.920 Hey, sir.
00:04:27.600 How are you, sir?
00:04:28.640 Hey, Patrick, it's good to have you back.
00:04:30.300 This doesn't mean all Yard Houses are like this.
00:04:32.060 Some of them have great managers that teach this, but not all of them, right?
00:04:35.400 So service, they make you feel special.
00:04:38.100 And by the way, no matter what you do within your business, you know, some people say, well,
00:04:42.020 you know, McDonald's is bigger than everybody else and they don't make you feel special.
00:04:45.360 Yeah, but, you know, if you look at what's the chicken company, Chick-fil-A, have you ever
00:04:49.840 heard the way they do customer service?
00:04:51.960 Sir, you know, pardon me, all these things, they have a certain language that they use.
00:04:56.480 You feel a little bit better service with Chick-fil-A.
00:04:58.820 You can still do that part.
00:05:00.060 Okay, so that's the second thing is they make you feel special.
00:05:02.700 Number three, there's an experience.
00:05:04.480 What is the experience?
00:05:05.900 Whether it's the music, it's the smell, you know, it's the way they smile, they talk,
00:05:10.880 they walk, they feel good, they have swagger.
00:05:13.720 You know, the way they make you feel, the whole thing is a certain experience that you
00:05:17.640 get when you go to this place.
00:05:19.120 Fourth one is a unique recipe that they have.
00:05:22.600 For instance, there's certain things they've done that's different than other restaurants.
00:05:26.080 So they'll say, you know, the way we make our steak here is this thing has been marinated
00:05:31.560 for the last this many days and this many hours and it's been sitting here for this and
00:05:35.600 we did this with this part.
00:05:37.040 There's a unique story to it, right?
00:05:38.900 And you buy into the story.
00:05:40.220 So they know how to sell the story behind the steak.
00:05:43.080 You know, we went to Fleming's this past week and the guy says, and this steak here today
00:05:47.200 that we have, it's a special chef that, you know, when our last chef left, this is what
00:05:50.860 he's telling me.
00:05:51.280 Our last chef left, I was concerned because we did not know what we were going to do.
00:05:55.440 He was with the company for 15 years.
00:05:56.920 So when his wife got a promotion to go to Hawaii, he moved with her and he told us and
00:06:00.560 we were heartbroken and we got this new chef and this new chef that we got is a Japanese
00:06:04.200 chef.
00:06:04.940 And so today's special is a yellowtail with Japanese whiskey.
00:06:08.820 It's a Japanese whiskey, yellowtail and all this other stuff.
00:06:11.360 I said, cool.
00:06:12.080 All right, so we tried that.
00:06:12.860 The yellowtail, let me tell you, heavenly.
00:06:15.540 The whiskey, I'm not even a whiskey guy.
00:06:17.640 It tasted like rotten apple juice, but it tasted good.
00:06:19.940 I like that whiskey.
00:06:21.420 And he says, we have this other special that we have with the tuna, ta-ta-ta.
00:06:24.380 And he brought this tuna with the sauce on there, not just the whole lemon thing.
00:06:27.680 Additional sauce on top of it with the lettuce on the side that you can pick it.
00:06:30.500 I just want to have it right now.
00:06:31.500 It was so delicious.
00:06:32.780 So he says, this is also with the new chef.
00:06:35.520 It's a new, unique thing that they have and they sell you the story, right?
00:06:39.160 So you sell the story of your company.
00:06:41.260 You sell the story of small little things you do with your company.
00:06:43.580 You can do that.
00:06:44.220 You don't have to be the biggest one to tell the story, sell the story, get excited about it.
00:06:48.540 You don't have to be here necessarily with the high-end product to get that.
00:06:53.460 You can do that no matter how big your company is.
00:06:55.240 Next, special formula.
00:06:56.680 You know, when you go to crustaceans and you eat at crustaceans, you will see the aunt family.
00:07:01.160 Okay?
00:07:01.960 The aunt family has a special recipe in the back that only the aunt family can go into this kitchen.
00:07:07.240 They have two kitchens.
00:07:08.200 One is for every worker that works there.
00:07:09.900 The other one is for the aunt family to go into that kitchen because their recipe nobody else can have.
00:07:14.320 They make this certain garlic noodles that if you've never had, it's absolutely addicting.
00:07:20.400 It's as if they put a drug in this garlic noodles at crustaceans that you want to overdose on it on a daily basis.
00:07:26.700 So they have a special recipe that brings you back.
00:07:29.600 That's the quality part.
00:07:31.080 You can have a special recipe within your company.
00:07:33.480 You can have a special thing you do for people that nobody else has experienced it.
00:07:36.520 You can have a special thing you do all the time.
00:07:38.080 You know, I went to a restaurant.
00:07:39.360 The first customer, they say, have you ever been here before?
00:07:41.420 I have not.
00:07:42.160 Perfect.
00:07:42.560 Great to know.
00:07:43.400 That entire night, everybody got a dessert and this was their saying.
00:07:46.680 Listen, just for you as a first timer here, we wanted to treat you to our three special desserts that we only make in-house.
00:07:52.600 I said, wow.
00:07:53.620 How cool is that?
00:07:54.660 And they brought it.
00:07:55.160 You can try this.
00:07:55.720 You can try this.
00:07:56.540 It's on us.
00:07:57.440 You're here for the first time.
00:07:58.440 We really appreciate you coming out.
00:07:59.820 I said, wow.
00:08:00.480 You made me feel special.
00:08:01.420 I went back over and over again because they made me feel special with the unique things that they had in place.
00:08:08.240 Next one is environment.
00:08:09.560 The environment is different.
00:08:10.540 Then it's the team that they have in place.
00:08:12.520 A lot of times you'll see the teamwork that they have.
00:08:14.360 You can have a great team together.
00:08:15.880 When a team meshes together, everybody feels it.
00:08:18.460 The customers feel it.
00:08:19.740 I feel it.
00:08:20.660 When they don't, I also feel it.
00:08:22.860 You know, I go to a restaurant local here, Cheesecake Factory.
00:08:26.360 And every time I go there, it's as if every single time we order something, from 20 times, last 20 times.
00:08:31.940 I go there on Sundays.
00:08:33.340 I take my kids.
00:08:34.320 My son orders a cheeseburger every time.
00:08:36.300 They forget the cheese.
00:08:37.540 Every time we ask for a ranch, they forget the ranch.
00:08:39.660 We have to ask a second time.
00:08:41.200 So now when I go there, guess what I say?
00:08:42.720 I say, listen, John, here's a tip.
00:08:44.940 If you get every single order right the first time, I won't tip you 18%.
00:08:49.360 I'm going to tip you 35%.
00:08:50.660 Oh, really?
00:08:51.720 Yes.
00:08:52.100 But you've got to get it right the first time.
00:08:53.240 I don't want to ask you twice.
00:08:54.520 No problem.
00:08:55.000 Because I want good service.
00:08:56.460 So for me, good service, I'm willing to pay more because that's what we have going on
00:09:00.100 on Sunday after church that we take the kids to, right?
00:09:02.760 And last but not least, it's quality of the product, you know?
00:09:05.720 Whatever you do, whatever you sell, it benefits you if you have a good product with high quality.
00:09:11.580 Some of these guys use high quality products.
00:09:13.620 You may not have the highest quality product, but there's ways on things you can do to make
00:09:17.400 your quality better.
00:09:18.240 So think about it this way.
00:09:19.200 Let me explain it to you in a different way.
00:09:20.460 I get people that tell me, Pat, how do I get paid $200 an hour?
00:09:25.180 How do I get paid $100 an hour?
00:09:27.160 How are some of these guys getting paid $400 an hour?
00:09:29.540 Well, how does an attorney get paid $800 an hour over the other attorney that makes $200
00:09:33.180 an hour?
00:09:34.240 He offers a better quality product, and it's him.
00:09:36.860 He offers a better quality service, and it's the attorney.
00:09:39.540 He offers a better quality, you know, advantage over the other attorney.
00:09:42.980 So you're willing to pay for it.
00:09:44.000 Why can't you do it?
00:09:44.840 You could do that.
00:09:45.460 You could improve.
00:09:46.380 And by the way, at the end of the day, remember what the product is.
00:09:49.100 You are the product.
00:09:50.820 If you improve your product, everybody around you within the company is automatically having
00:09:54.740 to improve.
00:09:55.360 So anyways, I can get into more on what I'm telling you with restaurants, but all I want
00:10:00.480 you to do in the next month is go to a few different restaurants, high-end, regular, and
00:10:05.680 take notes, and see if they remember details.
00:10:09.240 See if they ask you specific questions.
00:10:10.960 Say, honey, did you see they asked that question that said on Value Team, and Pat said on the video.
00:10:14.420 Hey, did you see what just happened here?
00:10:15.680 Take notes.
00:10:16.100 But did you see that card there?
00:10:17.340 They pay attention to details.
00:10:18.760 Hey, did you see what they did with this here?
00:10:20.460 And start applying those same concepts.
00:10:22.560 And by the way, make notes as well.
00:10:24.560 When you go to a restaurant and you don't feel good, because you told the guy twice, you
00:10:27.920 told him Coke, they brought you Dr. Pepper, which is the most disgusting, shell-shocking
00:10:32.480 experience your brain can go through.
00:10:34.260 Especially if you cannot stand Dr. Pepper.
00:10:36.320 Somebody brings you Dr. Pepper, you are confused.
00:10:38.780 It's like changing a religion when you drink Dr. Pepper and you were thinking this is Diet Coke.
00:10:42.800 And you don't want to go back anymore.
00:10:44.080 So anyways, I don't want to go on a rant, but all I'm telling you is, the more you pay
00:10:48.560 attention to the customer service and experience side, and still grow this, I believe you can
00:10:53.840 be greedy, and you can have both, and grow your company at paces by offering this side
00:10:58.740 and this side to the customer.
00:11:00.120 And all of a sudden, you look back and say, wait a minute.
00:11:01.800 We have one of the best propositions we offer in the marketplace.
00:11:05.720 Maybe that's the reason why we're starting to grow in ways we've never experienced before.
00:11:09.140 Thanks everybody for listening.
00:11:10.520 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:11:15.120 Give us a five star.
00:11:16.540 Write a review if you haven't already.
00:11:18.020 And if you have any questions for me that you may have, you can always find me on Snapchat,
00:11:22.100 Instagram, Facebook, or YouTube.
00:11:24.060 Just search my name, Patrick MidDavid.
00:11:25.960 And I actually do respond back when you snap me or send me a message on Instagram.
00:11:30.760 With that being said, have a great day today.
00:11:32.700 Take care everybody.
00:11:33.420 Bye-bye.