One thing I hate is abusive pricing. Movie theaters charging $4.75 for .15 worth of Diet Coke, New York restaurants that charge $4 for an iced tea without free refills, hotels charging $8 for a tiny pot of coffee and charging you $7 to bring it to your room--you get the idea.
One of the things I love about Los Angeles when compared to New York City is that the people in Los Angeles won't take abusive pricing. If you tried to charge people for a second, third, or even 10th iced tea they would read you the riot act. In New York City people are afraid to look cheap so they never say anything.
My belief is that the reason people get away with this kind of pricing is because people are not willing to say something. I think that people do predatory pricing because they can get away with it--when confronted they will stop, or at least be forced to explain themselves.
Today when I left the W Hotel in New York I hit the coffee bar in the lobby for an eight ounce cup of coffee. I thought they gave this for free to their customers (paying $400 a night), but they don't. So, I went to pay for my eight ounces and the women told me $2.80 to which I told her "really?!" She said yes, I said "that's abusive. That's $1.30 more than Starbucks!" If you coffee is twice the price of Starbucks--the kings of abusive pricing--you're really abusing people.
I left the coffee at the counter--after I had put in milk and sugar--in disgust. Come on W Hotel... be NICE to your customers, don't abuse them.
What's the most abusive pricing you've seen lately?
Consumerist should start an "abusive pricing" category to shame these people.
Abusve pricing: W Hotel, $2.80 for eight ounces of drip coffee--are you nuts?!?!!?
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Reader Comments
(Page 1 of 2)3. I know -- it really bothers me with hotels. If I'm spending hundreds of dollars on a room, why are you nickel-and-diming me, putting packages of M&Ms on the counter at $4 a pop. Really? $4 for that 69 cent bag of candy? It's not even Tear-n-Share!
:\
Posted at 11:46AM on Apr 25th 2007 by nate
4. The W Hotels--which I used to be very loyal to--have become disgraceful.
At the W Union Square, I once ordered an apple from room service. 18 dollars.
I went downstairs and saw bowls of the same apples on the front desk and lounge tables for free.
That was the final straw. Their "Whatever, Whenever" service is a joke if it results in price gouging.
And what did it cost the W Hotel? They lost a Starwood Platinum guest who stayed with them 30-40 nights a year. Over an apple.
Posted at 11:50AM on Apr 25th 2007 by B Whaler
5. Hmmmm.
How much were your profit margins at WIN? How much did you pay the bloggers who made you millions?
Isn't this a little hypocritical?
Posted at 12:11PM on Apr 25th 2007 by Russ
8. You started to mention it, but movie prices in theaters by far. It's up to 9-10 bucks in the Bay Area. All the snacks in the theater are a rip off. But to top it off, in the theater are about 20 minutes of ridiculous ads before the movie. Unfortunately, if you try to skip the ads you end up with no seat or you're sitting in the front row.
The thing that bugs me the most is how the ticket prices keep creeping up, about 25 cents every six months, for no reason I can discern. The movies aren't any better, it's the same theater.
Posted at 1:07PM on Apr 25th 2007 by Webomatica
9. Russ,
We lost some money at the start of Weblogs, Inc, risked lots of money, and years of our lives. My partner Brian got a second mortgage and I invested money to get the company going--and we never took salaries.
Some of the bloggers who worked with us got bonus when we sold, all of them got paid well, many got full time jobs when we sold, and some folks had equity (the ones who didn't got a bonus which would have been the same as equity we would have given them).
so, not hypocritical at all from where I sit.
We paid bloggers more money than anyone in the history of blogging and we gave them raises every 3 months on average.
so, you don't know what you are talking about and are 100% wrong!
best jason
10. Someone needs to compile a nice list of abusive pricing. My pet peeve is upscale hotels that still charge for connecting you on phone calls or outrageous long distance rates. That type of stuff is treating the customer like an idiot plain and simple and it is totally obnoxious. Why charge for calls at all? Most people have mobile phones and if you want to use the land line why not offer up some good will for those long distance pennies.
11. I was in New York for the SES conference and stayed at the Hilton New York (where the conference was held). I had to pay $60 dollars for a 5-day pass to the "fitness center." I was surprised at this because a.) I'm used to the fitness center being free and b.) the fitness center was very, very tiny -- not worth $60 by any stretch of the imagination.
I pay $30 per MONTH for Gold's Gym membership and that provides me access to the entire facility (2 separate floors of cardio and weight training equipment). At the Hilton New York I was getting charged double that amount for only 5 days and their equipment and fitness area paled in comparison to Gold's (easily 1/10th the size of Gold's). It was really quite surprising.
It made me want to work out every day but I really couldn't -- there wasn't enough equipment there to do a variety of workouts each day.
12. Last night, getting back to my room at the Four Seasons in Toronto after a 16hr work day, all I wanted was a quick bite to eat before heading to bed. I hadn't had dinner, so was quite hungry, but very tired as well.
The quickest they could prepare a real meal was 45min, so I just asked them to bring me an apple and a banana.
15 minutes later, my apple and banana arrived on a huge silver platter with a flower and a note thanking me for staying at the Four Seasons. I paid $14 for this, $14!!! For two pieces of fruit!
Posted at 3:45PM on Apr 25th 2007 by Seth
13. I've stayed at a hotel in CA about 20 nights since February. My rooms have ranged between $99 and $259/nt. I don't know that I'd call it abusive, but it's kinda crazy how the rate has swung so widely (while the amenities and service have remained constant). Like Jason's coffee, they'll charge what the market will bear.
14. Interesting thread, Jas-one-kenobi.
Abusive pricing I guess is a function of what the market will bear. One one hand, it is based on the forces of supply and demand, coupled with the premium afforded to brands.I'm not saying this is right, I'm just saying it is what it is.
On the other hand, you bring up something that has nothing to do with pricing whatsoever, but more about common sense. The best example being the $14 apple.
You're paying $400 for a room, but complaining about a cup of coffee...I guess it all comes down to expectations and the management thereof. There is also the notion of perceived value.
Again, good thread. All service providers would do well to exercise more common sense at all times.
Posted at 4:17PM on Apr 25th 2007 by Joseph Jaffe
16. Easy...New Yorkers do not drink coffee in Hotels, so it is not a New York thing. Hotels charge what the market will bear, and since most of the people are on expense account, you pay too much for coffee. Also, I am always amazed that people expect free refills of Iced Tea...I thought this was a southern thing. Why would 10 glasses of iced tea be the same as one?
Posted at 4:42PM on Apr 25th 2007 by Ben
17. People in LA won't take abusive pricing? Psh.. Should I remind you of the Viceroy where you can't even go get your own ice for your room? ;)
Posted at 4:47PM on Apr 25th 2007 by Alex Rudloff
18. You bring up an interesting point Jason, but I think B. Whaler or Seth's experience with paying $14 for an apple is much more telling. But as noted above, most people staying in nicer hotels like the W don't really think about it because the company is usually picking up the tab.
I'm staying at the W in Union Square this weekend... at least I know what will happen if I call down for some fruit now ;)
Posted at 8:44PM on Apr 25th 2007 by Corey Spring
19. $1 (AUD, roughly 83 c US) per MB for internet. The cheaper ones cap it at $27 per day, others don't, I've been charged $1 a minute as well for internet at another hotel.
And don't start me on phone call rates. Local calls at 50c a minute when in Australia at least they aren't timed and usually about 10-20c all up from a normal line. $3-$5 a minute overseas rate.
20. Can I be the contrarian? Parker Le Meridian hotel in Midtown Manhattan, some of the best & cheapest burgers in town. Located in the lobby behind large curtains. A Huge bargain given the location.
Posted at 10:44PM on Apr 25th 2007 by jaime cangas
1. Why is it that all the high end hotels charge you for internet access and all the budget friendly hotels don't plus they give you breakfast ....
Posted at 11:35AM on Apr 25th 2007 by Bart