ok so im running this miniature experiment about how to create a pizza menu. i notice whenever i go to a pizza restaurant that the diameter is always advertised on the menu, yet i realize that of course the radius squared is actually what varies proportionally with area not a diameter. so basically i wanted to test if people detect the difference in a linear and quadratic price menu. then i derived three more menus by taking the average of the linear and quadratic menu then the avg from the average with both extreme pricing. however i realize that obviously while quadratic pricing is most accurate it is highly impractical, because then there’s no incentive to buy a large or medium pizza. so basically my question is i have my data and total revenue based on people’s intuition. however, once i calculate revenue i then have to determine the cost i will have to expend for these 5 pizzas. again i assumed no toppings will be placed on a menu. so would cost vary linearly with the diameter of the pizza or quardratically with the area or does anyone have a better model to price my hypothetical menu. thanks.
Huh? LOL! The easiest way to price your menu would be to use software like food cost pro 2 from either Big Dave Ostrander or Point of Success. You put in what your items cost you and tell it what food cost percentage you want to sell at, and out pops your sale price. It does not have to be difficult at all.
I really hope this is a project for you calculus class or something because you are putting way too much thought into this. People in yor market know what the going rate for a pie is. If you offer high-end products/service than price to the high side as opposed to the the other way around…my pricing for cheese pizzas as follows:
I think you need to spend some time working at a pizza shop and stop being one of those stinking thinkers with all the answers and no money.
By the time you figure all that out, us common folk would have dominated your market along with your women :lol:
ok i understand yall have this software at your disposal but i have a small project due on monday. and all i was asking was whether the cost of a pizza generally varies with the area of the pizza or with the circumference of the pizza. just a basic pizza no toppings. i realize its probably not that simple. but if anyone has any idea how to model a hypothetical model i would greatly appreciate it and why that works. thanks
AS long as you understand the relationship between C and A you could use either…that is, if you double the radius of a given circle, the circumference doubles while the area goes up by a factor of 4. But in general, area is used as you could find the cost of your product in terms of square inches. Hope I remembered my math correctly.
pizza pricing concept
market will decide, …the basic concept and price is from 5 to 10 cents per sq. in., larger the pie, closer to 5 cents, smaller pies closer to 10 cents, or more per sq. in.
hope that helps,