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Does the Honor System Actually Work?

Square
Editorial Team

The Vault, a small coffee shop 45 minutes from Fargo, North Dakota, generated some international buzz this week around their honor system policy. While the shop lists the prices for its coffee and bakery items, it lets customers decide what they want to pay. In-store signage says “no change is necessary” and instructs people to either round up or down.

Interestingly, owner David Brekke finds that his customers pay around 15 percent more than the listed price. But for him, it’s more about the community than the money. “I think that people who haven’t grown up in a small, tight-knit community like this are very surprised by honesty,” he tells the Associated Press.

What do you think about the honor system? Would you ever try it at your shop? Sound off on our Twitter and Facebook pages.

The Square Editorial Team is dedicated to telling stories of business, for business owners. Our team comes from a variety of backgrounds and share a passion for providing information that helps businesses to start, run, and grow. The team is based in San Francisco, but has collaborators all over the country.