Risk is a significant factor that businesses wish to eliminate (although impossible) if not reduce to a minimum.  Just Cookin, a small diner in Dallas has boldly decided to remove all prices off their menus!  Owner Dana Parris claims to have strong faith in God and her customers to pay what they believe the food deserves.  RISKY?  Although “revenues tripled in the first week”, its sustainability is highly questionable.  A week’s time to judge the feasibility of this strategy is simply not enough.

Increasing customer power by employing this strategy during holidays or long weekends can definitely be a practicable strategy, an attractive means of marketing, and a way to earn a little more.  However, in the long run, this tactic brings insecurity.  Business itself is already a gamble; hence owners need stability not uncertainty.  Let us consider the consistency of consumers’ payments.  Will customers pay reasonably every time based on their conscience?  People are obligated to pay less if one day’s food is below their standards.  It is easy for them to keep raising their standards and use it as an excuse to pay less each time.  It is also a matter of abiding to business ethics or cheating the system by paying nothing completely.  This may not be the case, but it is crucial to take all precautions and be a little pessimistic when analyzing risks and making decisions.