Hard times

Why is it that Spanish businesses raise their prices when they have fewer clients? The businesses who are doing well in Majorca at the moment are those who dropped their prices and offered more incentives. I know of a number of local bars which give you a free small snack when you order a beer. Now, that is service. Unfortunately I know of others who have just put their prices up and don´t offer anything else. It is the same sad story with restaurants. I like to go to a restaurant for Sunday lunch but the prices which are being charged are so high and the service is so poor I am starting to have second thoughts. To my knowledge in Palma there are a few restaurants which have moved with the times and are now offering “recession busting menus.” And they are busy. Those who have increased their prices are empty and just complain about the recession. I know one city centre restaurant which has reduced its “menu of the day” by almost 10 euros. This is the way forward. Unfortunately, things are going to get worse before they get better. This Christmas the army of Civil Servants in the Balearics will not be receiving a festive bonus which will mean that a sizeable part of the Balearic labour force will be even more cash strapped. My advice to business owners is to try and reduce prices and increase service. This is the only way to weather the recession. I just hope that this point will register with some.