I am trying to decide on whether to do a 12" cheese or pepperoni pizza for say $5 or to offer a free 14" cheese pizza (toppings extra) with the purchase of a 16" specialty pizza. Any advice or opinions on this would be appreciated.
How about “Buy any 16” specialty pizza for regular price and get a 14" one topping for $5" ??? Kind of combies the two and I think the perceived value sounds good? You come out ahead of both the original options you were talking about and make more on additional toppings as well. What does everyone think? :shock:
The other thing that I learned from a car sales buddy of mine is play the .99 game. I know it is a little different when talking about 3-5 years of payments, but it still adds up. This really applies to pre-owned more than new because the new price you can get from any dealer these days is the same. Now that 2 year old whatever that you want… and this is why they always say negotiate the sale price not the payment… ok you can afford $325 a month… so are you telling me that you wouldn’t do…say… $379 if you had too? Ok…so $325 was your budget…the best I can do is $365… I love these games… the customer comes up to say…$350… now here is the trick… Ok can we make this work at $359? Are you really going to let $9 get in the way of you and your new car? If you cannot afford the extra $9 a month you cannot afford the car anyway. Well, 95% of the time…yes it works! Ok so that salesperson just made an additional $500 on that transaction off the “9”. Now do that 20-30 times a month… WOW… are we really saying that he makes that dealership an additional $180,000 a year just off the "9"s? Also it’s been proven that people see the following as the same numbers: $5.00 / $5.49 / $5.99…they are all $5. We mentally overlook the true value and see the first digit as the primary cost. That’s why cars are $19,999 or $39,999. You say it’s under 20k or under 40k. Yeah it is… $1! Ok so too my point…why a $5 pizza… I know the big boys did the $5 and now $10 campaigns…but we are not them and cannot be them. So how about $5.99 for that extra pizza. How much do you charge for extra toppings. $1.50… we all know that everyone would notice it raised to $2.00…but what about too $1.79 or $1.99? Just be careful with the primary digit. Yes we are just talking cents and maybe a dollar here or there, but in volume it will add up. :mrgreen:
I advise tacking on the extra .99 too. I’ve been doing direct mail and have a coupon for 2 12" 2-topping pizzas for 6.99 each. It’s been a huge hit but I constantly get questions about the final price.
“Ok, your total is $17.21, we’ll have it there in about 30 minutes”
“How come it’s so much”
“6.99 per pizza plus $1.23 tax and $2 for delivery”
“oh, right, ok.”
Their perspective makes them think it’s going to be about $12. They’re getting a good deal on the best pizza in town and fast delivery and when they understand the final price, it’s no big deal. But they pull the trigger because of the perceived value of two pizzas for “$6 something”
I’m seeing the same thing on my Sunday evenings. I offer a 12" for $8.99 (12" cheese is normally $8.95). The real cost of me making a pizza is in dough, sauce and cheese. I don’t really care about the topping cost, it’s minimal (especially when it’s veggies). The offer is to low for them to get a single pizza for delivery, so I constantly see a 2-3 pizza order or an add on of our signature breadstick item that has a 700% markup. Sundays pay my mortgage and student loans easily and could beat my Saturdays (open an extra 5 hours for late night) if I could figure out how to build an after church buffet crowd.