After dropping my son off at school at 5:30am (he is heading to Great Falls for the state basketball tournament), I turned on NPR on the ride home and heard a story about a Seattle restaurant whose daily special is priced based on the closing level of the Dow Jones Industrial Average.
For example, if the Dow closes at 7523, then the restaurant’s special that night is priced at $7.52.
If you listen to the story, you’ll find what you might expect: that people are buying the special (which is in limited quantities) because of the price.
What you might not have expected is that the same people who come in for the low price are also adding high-profit-margin items to their meal, like alcohol and desserts.
The owner sounds a little concerned about the price of the Dow, which is down 1000 points since he started the promotion, yet he continues the special. That tells me that the special is still profitable.
Not only did it not cost him large amounts of advertising money, but it turned a profit AND generated a ton of free publicity via National Public Radio.
So, how can you be creative and use the news today?