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Abusve pricing: W Hotel, $2.80 for eight ounces of drip coffee–are you nuts?!?!!?

4/25/2007

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.

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Hello, my name is Jason. Welcome to my blog on the interwebs. You can reach me on twitter @jason and by email at jason@calacanis.com. My Skype is jasoncalacanis, and my mobile phone is 310-456-4900.

I only pick up numbers I recognize, and in terms of emailing me, the best strategy is to write short, blunt and to the point requests. I can quickly respond to short messages, and many times I simply don't have the time to read five page pitches. In terms of taking meetings, I only do that after reviewing an actual product (not a business plan). So, the best time to ping me is when you have mockups or an alpha site. I don't read business plans, and I've never written one.

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