(This is going be a long one…4–5 mins reading time, but will definitely be worth your while)
Before I let you know what this trick is all about…
First, you must know what is HaiDiLao…
For those who don’t know its a famous hotpot franchise with over 300 outlets worldwide across China, USA, Singapore, Taiwan, Korea and other countries.
HaiDiLao is infamous for their minimum 3–5 hour long queues worldwide.
To get a table at 7pm, you have to arrive and get a ticket at 2pm… And that’s on a weekday!
There are also famous for their Flying Noodles ( Which I’ll get back to you on later ) and excellent attentive customer service.
While you wait, they provide free ice cream, chessboards, manicure stations, a kids playroom, newspaper and magazines to keep you company.
Upon walking to your table, you’ll be greeted by attentive waiters who sit you down and serve you drinks and a hot welcome towel to freshen up before your feast.
You’ll be then guided through the iPad to order food that’s 30–50% more overpriced than the average hotpot joint.
While your food is served, you’ll be handed phone covers and phone wipes to protect your phones.
Bibs to cover your shirt from the gluttony mess as you feast without worry and an experience that you’ll never forget as their signature chef comes over next to you kneading noodles in the sky, tossing it in circles and in front of your face, giving you a performance so mesmerizing as if you were watching a magician at work.
Watch the magic here
You eat, drink, be merry!
And the bill comes at an outstanding $300–500, and you pay willingly and without hesitation.
Satisfied and coming up with your own reason, justifying why it was worth it.
Now… for the same quality of food, we can get hotpot buffets at $10-$30 dollars per person.
Why do we pay so much to HaiDiLao willingly and in fact also willingly line up for hours and hours just to eat and pay overpriced hotpot?
The secret lies in the origin of HaiDiLao.
The founder, now worth over 300 Billion RMB, started working as a cleaner in the urban city of Shenzhen, and as a cleaner, after his long shifts, the only stalls that would be left open usually are the hotpot restaurants.
But faced with terrible service and poor environment, he set out to change the typical Chinese hotpot experience by raising the customer service standard.
He started his first restaurant with only four tables and in less than 6 years that grew into the multi-billion dollar RMB empire, it is today.
Now, the question is how???
Being better at customer service isn’t just HaiDiLao’s selling point because good service is always expected at a restaurant. So how does HaiDiLao make a killing?
The secret is in it’s “funnel”
Now typically on the online world, internet marketers always have a funnel, where you always give a free irresistible offer -> than to a tripwire ( a low-end cheap product ) -> core offer ( the main thing that your selling )
Now if you look at HaiDiLao it’s a totally offline business. With a very traditional offline business with little space for innovation, cause a restaurant is just a restaurant!
Their “Free Irresistible Offer” is their facade of services that they give to you for free.
And everyone that comes to HaiDiLao always orders the Flying Noodles for the performance, so when that happens… you just bought into their “tripwire” and then since you ordered noodles, might as well order some good overpriced meat and seafood to go with it, while you submit your order on the iPad , they will be a pop up special for fresh prawns going at 6 Dollars each, and you add them to your order!
So what just happened?
-To order the flying noodles, it’s only 4 dollars.
-The meats the seafood, per platter is 18–29 dollars.
-The base of the soup is 18–24 dollars.
So you came for the noodles, just to try and see how cool it is because your friend posted on Instagram.
And in the moment of the context and environment of the restaurant, you got sucked in and ended up eating and ordering more and more….only to end up with a whopping bill.
Yet because the customer service was so excellent, you felt it was “worth” paying for it!
In fact, after going to HaiDiLao once, in less than 60 days, Many customers go back 3 times, each time with different friends, and spend 300–500 each time.
So they not only maximise profits through upsells and their funnel. They also retain you as a lifetime client with their service.
And there’s even a membership to encourage you to keep on coming back and refer your friends and cause the experience is so unique, every time you go to HaiDiLao you help them do free marketing via Facebook & Instagram.
So the question now as a business owner or entrepreneur is this:
1) How can you use a funnel for your offline business?
2) What can you do to
a) Get your clients to spend more?
b) Get your clients to stay with you longer and come back more?
Leave your comments below & I will be happy to discuss how we can set-up funnels for your business the HaiDiLao way.