Episode 214： Why We Pay 60$ For A 10$ Steak
Episode Stats
Words per Minute
230.51639
Summary
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
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
00:00:17.280
I'm Patrick B.W., host of Vieta Men, and today we're gonna talk about why you and I, why
00:00:24.120
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
00:00:44.780
This is my challenge, and by the way, I'm greedy.
00:00:47.960
I want a massive explosive growth, and I want the best customer service experience on this
00:00:54.940
So what I do to get better in these areas, I have to constantly be in a learning mode.
00:01:04.280
Think about these restaurants and tell me if you've ever heard of any of these restaurants
00:01:22.740
Ruth, Chris, have you been to these restaurants?
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.
00:01:44.700
And then on the complete opposite side, you've got Cheesecake Fact, you've got Applebee's,
00:01:49.140
Why do these places charge so much less than the other ones?
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
00:02:02.540
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.
00:02:27.960
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.
00:02:56.400
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
00:03:11.700
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?
00:03:21.880
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.
00:03:38.060
They know what salad I order and they know the hake fish that I like and the way it's
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.
00:03:58.000
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.
00:04:09.820
Making somebody feel special is the words you use.
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?
00:04:38.100
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
00:04:51.960
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.
00:05:00.060
Okay, so that's the second thing is they make you feel special.
00:05:05.900
Whether it's the music, it's the smell, you know, it's the way they smile, they talk,
00:05:13.720
You know, the way they make you feel, the whole thing is a certain experience that you
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
00:05:40.220
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
00:05:51.280
Our last chef left, I was concerned because we did not know what we were going to do.
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
00:06:04.940
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.
00:06:17.640
It tasted like rotten apple juice, but it tasted good.
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.
00:06:35.520
It's a new, unique thing that they have and they sell you the story, right?
00:06:41.260
You sell the story of small little things you do with your company.
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.
00:06:56.680
You know, when you go to crustaceans and you eat at crustaceans, you will see the aunt family.
00:07:01.960
The aunt family has a special recipe in the back that only the aunt family can go into this kitchen.
00:07:09.900
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.
00:07:31.080
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.
00:07:39.360
The first customer, they say, have you ever been here before?
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.
00:08:01.420
I went back over and over again because they made me feel special with the unique things that they had in place.
00:08:12.520
A lot of times you'll see the teamwork that they have.
00:08:15.880
When a team meshes together, everybody feels 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.
00:08:37.540
Every time we ask for a ranch, they forget the ranch.
00:08:44.940
If you get every single order right the first time, I won't tip you 18%.
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.
00:09:13.620
You may not have the highest quality product, but there's ways on things you can do to make
00:09:20.460
I get people that tell me, Pat, how do I get paid $200 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
00:09:34.240
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.
00:09:46.380
And by the way, at the end of the day, remember what the product is.
00:09:50.820
If you improve your product, everybody around you within the company is automatically having
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
00:10:10.960
Say, honey, did you see they asked that question that said on Value Team, and Pat said on the video.
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
00:10:36.320
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.
00:10:44.080
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
00:11:00.120
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.
00:11:10.520
And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:11:18.020
And if you have any questions for me that you may have, you can always find me on Snapchat,
00:11:25.960
And I actually do respond back when you snap me or send me a message on Instagram.