My friend Melissa related a story to my other day. I asked her why she goes to a local hardware store that is more expensive for whatever she buys there than the hardware mega-stores. Her response both surprised and interested. Melissa stated that unless she knows exactly what she wants, she will go to the local hardware store even though it is more expensive. She went on to say that at the local hardware store there were plenty of people to answer her questions and that they were very knowledgeable. At the mega-hardware stores, she said she can never find anyone to help her and when she does, they usually are not able to answer her questions. For customer services people who were available and knowledgeable she said she was willing to pay more than she would at the mega-stores.

This got me thinking about premium pricing and service. Not the over the phone service. That is a whole other topic. But about face-to-face service in the areas of retail, food service, hospitality, personal services and financial/professional services. These are all areas where in spite of the mantra of