Wendy’s has spoken to its manager after suggestions that it plans to introduce “surge pricing” to its menu received a decidedly frosty response this week, with the company scrambling to clarify that it has no intention of making itself the Uber of fast-food chains.
That would also teach them to not bother backing down if there’s backlash in response to an announcement…
So you have a certain level of annual profit. You suggest something incredibly offensive that you believe will increase profits by say 10% with the idea you can roll it back if its a net negative. The response is so negative that you re-assess and believe you will actually LOSE 10%. You roll it back but people are still pissed so you end up losing 2% to decrease in goodwill.
Anyone whose take away is that they should just roll on and lose 10% would be a fucking idiot. The proper take away ought to be staff ideas like this with a disinterested third party before announcing to the world so you don’t lose good will in the first place.
What? Are you insane?
It is logical, I know for a fact that’s how a lot of executives think when there’s a backlash, they maybe go back part way or all the way on it (usually the former) people are still (rightly) upset then eventually they get jaded to the point of not giving a fuck about the backlash and making even worse decisions.
Those executives should be fired. Or at this point they should just set prices regardless of market, even though no one will buy at that price point. Same ridiculous logic.
The logical presumption is that the backslash for proposing it is a fraction of what the backlash is for implementing it.
I guarantee you if the backlash affects profits and angers shareholders the csuite won’t be jaded about it.