According to this article, all major U.S. carriers, aside from Continental and Southwest, have added a $10 surcharge to most of their fares for travel on three busy days around the Thanksgiving and New Year’s holidays: Nov. 29, the Sunday after Thanksgiving, as well as Jan. 2 and 3.

Rick Seaney, CEO of FareCompare.com, said the airlines likely added the charge because it was a quick, targeted way to charge more on peak travel days. The Sunday after Thanksgiving is one of the busiest travel days of the year, while the two dates in January are popular with holiday travelers as well.

So the airlines are charging passengers a $10 surcharge for the privilege of enduring congested airport traffic, fewer parking options, longer lines at the terminal and security, packed gates and airplanes, and the inevitable delayed flights and mishandled bags that result from seasonal volume.

Revenue-focused companies are really good at identifying and creatively labeling fees and surcharges and the asterisk keys on the keyboards of their legal departments are commonly worn from excessive use. If these companies would channel the same energy and ingenuity into customer satisfaction that they use to identify and apply extra fees and surcharges, they would more than recover the revenues gained from this irritating practice.

Customer-focused companies deal with seasonal spikes in business by adding value, not fees. When Disney is extra busy over the holidays or during spring break, it doesn’t charge its guests fees or surcharges to offset its increased costs. Instead Disney adds value by offering packages that bundle airfare, lodging, and theme park admissions. Disney also adds staff to minimize delays and provides additional entertainment by its characters to amuse children as they wait in line to enjoy another ride. That’s how a customer-focused company deals with volume—not by charging extra for it.

Anytime making money becomes more important than properly serving customers, the business ultimately suffers. When the bottom line drives a company, it will resort to added fees and surcharges while cutting back on service and quality in order to improve its near-term operating statement at the expense of long-term customer goodwill and loyalty.

There should be a litmus test for any such charge. If a board of directors would vote for it unanimously while a group of customers would oppose it unanimously, get rid of it. Instead, make your money the old fashioned way: Earn it by providing value to customers by delivering exceptional product and service quality that justifies the price you’re charging.

My two oldest boys recently attended a cousin’s LEGO® Star Wars™ themed birthday party at the LEGO® Store. When they returned home, each was carrying a bright yellow LEGO party goodie bag and proudly wearing a LEGO name tag that had been personalized with his name. I asked them how they liked the party. “We had a blast!” they exclaimed as they dumped the contents of their goodie bags onto the kitchen table, revealing:

• A LEGO Club magazine
• LEGO Club membership card
• LEGO Store coupon good for $5 off $35 purchase
• LEGO Builder’s License
• LEGO Tips & Tricks card

Soon, they were extending their LEGO experience by immersing themselves in more LEGO activities (i.e., building models, reading their LEGO Club magazines, and going online to the website). While at the website, they identified models they would like to buy with the $5.00 store coupons they received in their goodie bags.

I said to my wife, “The party sounds like it cost a fortune.” To my surprise, she said it only cost our cousin around $125. And that included:

• A themed, hour-long birthday party at the LEGO Store for up to 10 children
• A $100 LEGO Gift Card for purchasing the sets each party guest will build and take home
• 10 invitations, 10 thank you cards and 10 name tags
• Dedicated LEGO host for the party
• Exclusive LEGO birthday brick for birthday child

Wow! The LEGO Store is doing it right on so many levels with its design of this birthday experience:

• By offering themes like LEGO® Star Wars™, LEGO® City, and others, parents can tailor the party’s theme towards their child’s preferences.
• By including the $100 LEGO Gift Card, they are adding tremendous value to the $125 cost of the party while, at the same time, providing the centerpiece party activity as well as parting gifts for the party guests!
• By including the invitations, thank you cards, name tags, and dedicated LEGO host for the party, they are saving work for the parents—which is always welcomed!
• Lastly, by providing an exclusive LEGO birthday brick for birthday boy or girl, they are reinforcing the child’s uniqueness by allowing him or her to receive something special that can only be received by a child whose birthday party is held at the LEGO Store!

While the children are busy building LEGO models, LEGO is building loyalty through value and the customer experience. Brilliant marketing by a brilliant brand!

In the February 19, 2009 issue of BusinessWeek, an article titled Customer Service in a Shrinking Economy featured customer service enhancements at BMW dealerships. Specifically, the automaker rolled out Wi-Fi service at its dealerships last year with the intent of giving customers an inexpensive way to pass the time while their cars were being serviced.

The cost was minimal because BMW just expanded the broadband dealers already used to run their businesses. Even so, every expense is being scrutinized in this delicate economy. BMW decided that positively impacting the customers’ waiting experience by helping them to increase their personal productivity was worth the investment.

But what BMW didn’t anticipate was that now, since customers were able to use their waiting time productively, fewer of them were opting for free loaner cars—which are pricey for dealers to maintain. BMW attributes a reduction of 10% to 15% in monthly loaner car expenses, in part, to the availability of Wi-Fi. These savings more than offset the investment in the expansion and ongoing maintenance of the Wi-Fi networks.

BMW has provided a great example of how a simple, low-cost customer service enhancement can actually cut costs while improving the experience for customers. The article quotes BMW Vice-President Alan Harris: “Fix the customer before you fix the car. If you focus on fixing the customer’s problem first, the rest is easy.”

I would add that, if you focus on fixing the customer’s problem first, you might actually stumble upon a cost savings (e.g., reduction in BMW’s loan car expenses) or a revenue enhancement (e.g., it’s well-documented that happy customers contribute to the growth of a business through their loyalty, future spending and referrals).

How does this focus on customers apply to your business? What inexpensive features or benefits can you provide to customers to increase their perceived value for the price paid—which is especially critical in today’s economy?

There is a restaurant in my neighborhood named Wine Experience Café & World Cellar. This restaurant is unique in that two-thirds of the space is used as a bar area and dining room and the other third is used as a liquor and wine store.

The owner, Eldon Larson, had a career in wine sales prior to opening Wine Experience Café two years ago. His knowledge of wines, grapes, regions, etc. is extensive and he’s always willing to share and educate in order to elevate a guest’s meal or wine purchase from a transaction to—as the restaurant’s name implies—an experience!

Earlier this year, I took a friend of mine out to dinner for his birthday at Eldon’s restaurant and Eldon stopped by our table to check-in with us regarding the quality of the food and service. Sensing by our questions that we were especially interested in wine, Eldon pulled up a chair and asked our server to bring over a flight of three unique wines. If you’re not familiar with wine flights, they are simply a variety of wines served as smaller, perhaps three-ounce, pours.

Eldon expertly paired the wines with the food we’d ordered. When they arrived at the table, Eldon led us in tasting the wines. He asked questions of us pertaining to what we noticed in the colors of the wines, the scents we were picking up when nosing the wines, and what tastes we were detecting when sipping the wines. He explained the acidity, the texture, and the finish of the wines and, again, moved the meal from transactional to experiential.

After Eldon had left our table, another diner commented, “You two must be pretty important for the owner to spend so much time at your table.” Shawn and I laughed. Then she said knowingly, “Wait until you get the bill.”

And you know what? She was right. Eldon doesn’t give wine away. He sells wine. But more than that, he fulfills experiences. If our number one priority had been price, we wouldn’t have been at Wine Experience Café to begin with. Yes, people are looking for value (in any economy) but not at the expense of fulfilling an experience.

Let’s fast-forward four weeks or so to last week when I stopped by the retail side of the establishment to inquire about a bottle of wine, Earthquake Cabernet. Although Eldon did not stock the wine, he took the time to look the bottle up and told me that he would place a call to his distributor to find out whether or not he could get it in the store.

A couple of days later I received a voice mail from Eldon saying that the wine had arrived. My first thought was, “Oh, I didn’t intend for him to order a bottle. I only intended for him to see if it was available and, if so, at what price?”

Later that day I arrived at the store to pick up the bottle of Earthquake Cabernet, hoping that it was closer to $20 than $40. When I arrived, Eldon greeted me with, “I’ve got your case of Earthquake right here.”

I said, “Case?”

He said, “Yes. You did want a case didn’t you?”

Here is where the relationship that Eldon had been building over time by expressing genuine interest in me as a customer, sharing unique knowledge about wines, and conveying authentic enthusiasm for food and wine, really began to pay off for him.

I said, “I’m not even sure of the per bottle price. How much is it?”

Eldon said, “I was able to get you a really good price from the distributor: $24 per bottle. I actually hired him into the business many years ago.”

My response: “Sold!”

The moral of the story is that, in the absence of the relationship that Eldon had forged, I almost certainly would have said, “Hey, I never authorized ordering the case. I was only inquiring as to whether or not the wine was available and, if so, at what price. My budget is $20 for wine, so that wine’s too pricey anyway.”

In that situation, the vendor is stuck carrying another $288 worth of obscure inventory and depending on how the misunderstanding is handled, could jeopardize future business with the customer. Think about it, we’ve all been in similar situations before. How you chose to proceed as a customer likely hinged on the relationship you had with the vendor.

Memorable service that is customer-focused fulfills experiences, builds relationships, and creates loyal customers who are less price-sensitive, recommend your business to others, and tend to repurchase products and services.

Transactional service that is process-focused and does not add value or build customer relationships, however, does none of these things.

Earlier today, I stopped by one of those cookie specialty stores to pick up an order of one dozen cookies that had been decorated as pineapples. (In case you’re wondering, the pineapple serves as a symbol of hospitality and warm welcome.)

As I’m preparing to pay, the clerk said, “So that’s twelve cookies at $6.85 each… $82.20. Then two boxes at $3.50 each… $7.00. And…”

I interrupted, saying, “Pardon me. Did you say I have to pay $3.50 for each of the boxes?” She confirmed the charge saying, “If you want a regular box, there’s no charge. But we charge extra for this box because it is only supposed to be used for our gourmet cookies.”

I asked her, “How much do you sell the gourmet cookies for?”

She said, “Eleven dollars per dozen.”

Now, I’m standing there trying to reconcile the absurdity of what I had just heard and asked, “So if I were to buy a dozen gourmet cookies for $11, then you’d give me the box?”

She said, “No. That box is only used for two dozen gourmet cookies.”

“Okay.” I said, “If I were to buy two dozen gourmet cookies at a cost of $22, would you give me the box?”

She said, “We sell two dozen gourmet cookies for $22. If you want them in the box, the cost is $33.”

She said all of this with a straight face.

I collected my thoughts and asked her one final question of understanding which I prefaced with: “Okay, just so that I have this correct, I could buy two dozen gourmet cookies in a bag for $22 and also buy the box for $3.50 totaling $25.50. Or, I could buy two dozen gourmet cookies in the box for $33 and pay $7.50 more. Is that right?”

While she acknowledged that my math was correct, she would not acknowledge the lunacy of their pricing model. Instead, she justified it saying, “It’s corporate pricing. We don’t have anything to do with it.”

In the end, I left having paid $88.86—which included the price of one dozen decorated cookies plus tax. She grudgingly parted with two gourmet cookie boxes with lids.

I’m certain she’s told anyone who was willing to listen about this cheapo customer who came by the store to pick up his order and balked at paying a measly $3.50 for a gourmet cookie box.

She may have even suggested that, since this customer doesn’t even work in the cookie business, what right does he have to challenge their pricing policies? Silly customers. When will they learn their place?

Well, I’ve learned my place. The next time I’m looking to spend $88.86 on a dozen decorated cookies, my place will be their competitor: Cookies in Bloom on University Blvd. here in Denver.

I’ve already called and confirmed they don’t charge extra for boxes.

Consider the job knowledge that is expected from a typical waiter at a fine dining restaurant. For instance, he or she might be expected to know the menu items well in terms of ingredients, sauces, substitutions—that sort of thing. The waiter would also be expected to know about aspects of the menu that might change from time to time such as the market prices of fresh fish, daily specials, etc.

What may not be expected from a waiter is unique knowledge. By definition, this knowledge is unexpected—that makes it unique. Because it’s unique, it adds to the service experience and is memorable. Ordinary job knowledge is expected and produces predictable results. Because it’s ordinary, it does not add to the service experience and is, ultimately, forgettable.

Here’s an illustration of two waiter scripts, one conveying job knowledge (i.e., bland and routine—and quite forgettable) and the other conveying unique knowledge (i.e., unexpected and refreshing—and quite memorable!):

1. Job knowledge:

“Tonight, our featured appetizer is the Pâté de Foie Gras. May I interest you in an order?”

2. Unique knowledge:

“Our chef trained at the prestigious Restaurant School in Philadelphia and apprenticed at Le Bec Fin. She also traveled to France to refine her knowledge of French delicacies such as truffles, escargot, and foie gras. In fact, our Pâté de Foie Gras is our featured appetizer. May I tempt you with an order?”

Now, seriously, if you’re on the receiving end of each of these proposals, which one might you accept—even if you previously had no intention of ordering an appetizer? Exactly.

And here’s something else I’ve found to be true: Which proposal is likely to bring up the question of price (which may influence a customer’s decision of whether or not to order the appetizer)? After hearing the second proposal (and swallowing, as the waiter’s proposal has likely activated a Pavlovian response…) my hunch is that, for most customers, the price of the appetizer would be irrelevant.

So, make it a point to acquire as much unique knowledge as you possibly can about products, services, the culture and history of your business, the building and neighborhood you operate in, the people (as in the example above), and even proper names (e.g., “Why is the restaurant named Ruth’s Chris anyway?”). You will be providing your customers with a richer service experience and they will be making you, well, richer!

While customers appreciate nice employees, they value knowledgeable employees. And the more unique knowledge employees possess, the more value they bring to the customer experience.

A couple of years ago, I was shopping for a garment bag for my wife. Her job required travel and her current bag was showing serious signs of wear and tear.

I stopped into one of those mall luggage stores and the salesperson showed me a black Tumi garment bag.

As I was inspecting the bag I noticed the price was $400. I said to the salesperson, “Wow.  I really like the bag but four hundred dollars is more than I was planning to spend. Do these bags ever go on sale?”

She answered, “The only time I’ve seen these bags discounted is when a color or style has been discontinued.”

I didn’t see anything else I was interested in buying at the store and so thanked the woman and left.

A few minutes later I stopped by a second luggage store at the mall and looked around. Again, the only bag that caught my eye was the same black Tumi garment bag. I checked the price tag: $400. A salesperson approached me about this time and asked if she could answer any questions. I posed the same question I’d asked in the previous store, “I really like this bag but four hundred dollars is more than I was planning to spend. Do these bags ever go on sale?”

Again, the salesperson answered, “These bags are only discounted when a color or style has been discontinued.”

I thought to myself, “Well, at least they’re consistent.” But then the woman said something I hadn’t heard before.

She said, “You’re right. This luggage is not cheap. Four hundred dollars is quite an investment in a garment bag. Did you know, however, that this will be the last garment bag that you may ever have to purchase?”

My quizzical expression prompted her to continue…

“Tumi guarantees its bags for life. It’s made out of ballistic nylon and can withstand the wear associated with frequent travel. If you do experience a tear, a lost wheel, anything at all, Tumi will repair or replace the bag at no cost to you—for life. Also, Tumi installs a special metal plate in each of its bags containing a bar code that customers register at the Tumi website after purchasing the bag. That way, if your bag is ever mishandled, there will be a way to reunite you with your bag even if your luggage tag comes off during handling.”

I bought the garment bag.

It was ironic to me that I was leaving the second luggage store with the identical bag I hadn’t even considered purchasing for $400 fifteen minutes earlier at the first luggage store. And all because the salesperson took the time to share her unique knowledge and convince me that, as a frequent traveler, I really could not afford not to buy this bag!

While customers appreciate nice employees, they value knowledgeable employees. And the more unique knowledge employees possess, the more value they bring to the customer experience.