This week I continued my cost-cutting measures. First, I cut manager wages $25 a week (from $650 to $625) and cut server wages $.25 per hour (from $9.25 to $9.00). Also, I completely eliminated all advertising we had, feeling that the Chandler name had gotten out well enough since I had aggressive advertising campaigns every week previous.
I was pleased with one minor decision I made this week when I raised the price of a small cup by $.25 (from $2.75 to $3.00) and cut the price of a large cup $.25 (from $4.00 to $3.75). Thus, there was no total price hike, but it did encourage patrons to order larger, more-expensive cups of coffee. It worked, as for the first time small cups were not the most purchased variety. Also, this led to the highest earnings I have had since I closed weekends.
The effect of customer satisfaction, however, was negative. I am not disappointed because when I had the highest comparative satisfaction level I had a net revenue in the red on the balance sheet. I have turned that tide and am now making some money, which is very pleasing.
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