
Let me start by stating for the record that I’m a huge fan of Quiznos subs. I have been for several years now. But on a recent visit to my local Quiznos I encountered what seems to be a big mistake on the part of the brand management team at Quiznos.
In the past, Quiznos offered to add items like lettuce, tomato, olives, etc. to your sandwich at no charge, even if those items were not part of the sandwich as it is advertised. However, during this visit I was informed that adding lettuce to my Prime Rib & Peppercorn Sub (because adding lettuce makes anything healthy, right?) would now cost me $.30 because the sandwich doesn’t officially come with lettuce. I asked if this was a “management thing” or a “Quiznos thing,” and I was informed that it was in fact a “Quiznos thing.”
Bad move Quiznos, bad move. Welcome to a simple lesson straight out of Brand Management 101.
Today’s lesson begins with the consumer. It is reasonable to believe that the average consumer understands that prices usually rise over time. Inflation happens, cost of living goes up, and in parallel cost of doing business goes up. It’s a no-brainer that at some point prices rise. And an increase of the cost of goods may very well be the reason for Quiznos’ decision.
However, while the fact that prices generally rise does not necessarily trigger a negative reaction by the consumer, charging them for things that were previously provided at no charge almost certainly ruffles some feathers. You have now turned your brand into “the bad guy.” This is something to avoid at all costs.
I propose a better solution. Let’s just say for the sake of argument that now only 1 in 3 customers will pay for the extra toppings that were previously free. In the current model, Quiznos stands to make an extra $.30 for every three customers it serves. Instead, Quiznos should’ve just raised the price of every sandwich $.20. That’s such a small amount, most people would hardly notice and they would avoid the negative effect of charging their customers for something they have always provided for free in the past. And if you do the math, they would actually make more money! $.60 for every three customers they serve, rather $.30 for every three customers (based on the assumptions in the example).