Does this economy require the $10 pizza?

sales have taken a slight dive i think the $10 pie has come to stay and my customers know it
should i consider doing this or just ad to the unemployment problem let me give you my situation

Specials
2 Large 2 Toppings $18.99 $1.25 addtl topping chge
3 Large 1 toppings $23.99
1 large Spec 1 Large 1 topping
2ltr drink dessert $24.99

if i sold the $10 pie with upto 3 toppings and dropped the specials
i would only be losing $1.49 on the 2 large and 3 large pizzas with 3 toppings on each
and then go to $12 for specialty pies because at 4 toppings we start to cut back on quantity (i.e. 40pep to 25pep)
thinking about going to it and seeing what it produces any comments or suggetsions would be appreciated

thanks alot guys and hope your dough is flying better than mine

Dennis

Find a different angle than price. You most likely can not compete with the MACHINES (Dom/P.H.) on price.

The $10 pizza days are numbered. Pizza Hut has rolled out new pricing that they market as “lower” but a specialty pizza that cost $10 two weeks ago now costs $12. They must have the same math geniuses on their payroll that our government uses to manipulate their use of the term “lower costs”. Papa Johns is putting an end to their $10 pizza as well(see link below). Where I’m at Dominos is pushing $5.99 large 2 topping carryout only and 2 medium one toppings for $5.99 each. Hungry howies offers a $4.99 large cheese or one topping carryout, Little Ceasars offers a $5.00 cheese or pepperoni for carryout and Cicis is offering a large one topping for $4.99 carryout. If you price yourself at $10 you’re still going to be higher than some. Cheap cheap cheap carryout specials seem to be the growing trend in my market. I’m just banking on the fact that some will always want delivery and its hard to justify paying $12.00 plus delivery fee and gratuity for a dominos pizza that you could go and pick up for $5.99. Those that think that through will not likely be ordering Dominos for delivery.

http://www.pizzamarketplace.com/article … s-10-pizza

http://www.pizzamarketplace.com/article … n-for-good

The ten dollar pizza will be around for a while do to the econmy. Here in Michigan every competitor has a ten dollar pizza. We offer a $9.99 upto three item pizza. We have other better offers or combinations that would save the customer more but ,they go for the large upto three first. With putting a three item for $9.99 more customers will add other items to increase the cost. I recommend not to put unlimited amount of items for $10. The key is still going to be what do you have that is different or better than the guys next door. The big buys will keep spending the big dollars on there weekly, monthly coupons. Why? to keep top of mind.

anybody else wanna comment?

I’ve seen Papa John’s pushing a $7 pizza deal around here: Any 3 Medium pizzas of your choice for $7 each. I think this is the way to go when you’re wanting to focus on price - advertise a “teaser rate” with the catch of a $21 minimum check.

Try doing basically the same thing with the 1st two specials you already have:

Try changing the wording to:

2 Large
2-topping
Pizzas
for
$9.50
each!”

or

3 Large
1-topping
Pizzas
for
$8.00
each!”

Oh, and don’t forget
Additional toppings
only
$1.49/each,
per pizza.”

Catching the customer’s attention is the bulk of the challenge. Honestly, “$23.99” isn’t going to turn many heads where pizza is concerned due to the perception of that being expensive - even though it’s only $8 per pie when you take the time to do the math. People are by nature lazy: do the math for them.

You’ve already got some decent specials that I think you can work with, but your current format is selling the steak instead of the “sizzle.” You may not need or want to do the $10 thing.

I will, when I have time to write more than a hipshot response. I’ve been thinking about this for a few days now.

The short response is: No, don’t change your price. Change your plan of attack.

Can you tell us a little about your market? I think we both are in pretty similar markets of 10K homes, $25K median income.

in a small town of about 4500 people and and in the income of about30k

been open for 7 yrs just trying to increase traffic

on main st and really trying to get reenergixed you knoe the old 7yr itch thing

Completely agree. I believe an independent needs to differentiate itself from the chains, not join them. Are you selling price or pies?

I check out the competition all the time. I do not check out places that have big “price” posters up all over the place. Just another “cheap” pizza place is the impression.

I have a pizza shop in the worst hit county of MI, Genesee . And for me I think the $10 pizzas are doing me in. I’m changing strategies and increasing my pizzas sizes without increasing my prices. I’m hoping this will get customers back. I also offer 2 great deals on Mondays 1 medium 1 item 4.99 and Thursdays 1 large 1 item 5.99. These 2 days seem to be my only busy days. So hopefully by increasing my pizza sizes the other days pick up.

Debbie,

i’m not understanding your thought why make bigger pies for the same price

if you make bigger pies you willmost likely have to buy bigger screens=$$, Bigger boxes=$$, advertising=$$$,
& most of all your food cost wouls go up=$$$$

why not just cut your prices so you wont have that added expense for screens & boxes just the food cost & advertising

if your going to run say a 30-35% FC you might as well not have to put out any extra money for changing the size your customer probably dont care about size they care about price and taste

just my thought s
dennis

I’m not having any extra cost on anything but just adding 1 more size up to 18" and food cost is only going to be minimal my customers love the idea and would welcome it. I’m going to be the only one in the county that is going to offer bigger size pizzas, everyone else around is standard 10" 12" 14" 16" I’m eliminating the 10" and moving the rest up in size. I can’t cut my costs anymore than I have. I have an overhead I have to account for, mainly rent, consumers, phones, and inventory. The mind set of people in my area is they don’t care about the cost due to the quality of food I put out. They would rather pay for good quality than pay for crap like LC, HH and so forth

Debbie, if your quality is great and your customers like your product, why are you offering $4.99 pizzas and trashing LC at the same time??? I’m confused…

I’m sorry you are confused; you must be in an area that has no recession or high unemployment. I’ve been offering a 4.99 pizza to entice new customers, ones that can only afford fast food pizzas like LC and HH. Once they come in on the 4.99 and 5.99 pizzas they see who Im about and there I have returning customers. WHICH HAS WORKED VERY WELL.

I’m glad its working for you. In such a market as you describe, low dollar and cheap products prevail. LC and such offer low dollar and cheap products. They are better positioned to weather current economic conditions of the area. Why I’m confused… ARE YOU POSITIONED TO COMPETE WITH THEM? If your product IS AS CHEAP as your competitors, then you’re selling something other than quality - perhaps customer service… Which, obtw, is okay. IF, however, your product costs YOU more, then you’re engaging in a battle that isn’t in your favor to win. Your competitors beat you on food costs and profit margin, while matching you on price in a less than desirable market. You’ve already stated that you’re most busy when competing on price points. Some successful indies don’t compete head to head with ‘price’ they select something else like quality or customer service and then target the appropriate customer group (if they exist).

The low dollar chains are having some good years, but there are customers out there who will still not pick them simply on price. Those will be your best bet for new customers, not the cheap price shoppers.

I think there is a part of the picture we aren’t getting, Debbie. The quoted part seems to be contradictory with your business model. If the customer would rather pay for good quality, then you should be able to increase your price point and still maintain sales volume. It sounds like they love being able to pay economy prices for a better product, which is more about them willing to pay $5 and looking for the best $5 pie available.

I do understand the tragic economic strife in Michigan. We are facing it in my county, and my town, especially. Unemployment is sky high, and disposable income is near non-existent for many, many of the people. In that sort of marketplace, I would expect price to be King. When faced with a choice of $8 pizza or $5 pizza same size and toppings, they will take the $5 because it is cheaper. Fresh pack tomatoes, artesanal cheese, organic crust and grass fed pepperoni might bring a couple folks to the $8 pie, but the $5 rules the roost. It sounds like that is where you are in the market . . . selling your superior product for the prevailing price. If you can survive and thrive at that rate, then keep at it. Volume will be your friend. Your description suggests that it won’t work for you that way as you only do the cheap prices a couple days and have really slow sales at regular pricing.

It sounds from only the information you gave that price is what is truly driving the market. If that is the case, then making a larger pizza won’t hit the driving mindset. There are scores of us out here selling a “large” size 16" and fighting to educate customers on value of our pie over the 14" at PH. What I offer is making absolutely dead sure you educate everyone about the better value. Might be an uphill road. Do you already have your marketing strategy together on how to sell this new concept?

I got sick of this battle. When we bought this shop, it was small, medium & large (10", 12", 16"). I finally just changed the name of my 16" to a Xtra Large, it’s made a big difference on my coupon and marketing returns.

like it a lot. In the past year I’ve had LC and DOM move within blocks of my place. Like it or not they have taken a bite out of the bottom line. Like you guys I fight everyday to educate customers on the differences in the sizes and the prices. Have been really considering changing my size discriptions to equal the chains and will put it into effect next month. Apples to apples.

Im fighting both battles of cheap versus quality and size. I am located dead center in between 2 towns and 1 other town to the east of me. What I face is the 2 towns north and south care about quantity, quality, as well as price. The 1 town east of me only cares about cheap cheap cheap, they don’t care what they feed their kids, so for them LC is the way to go because its cheap and fast. I have more than a hand full of customers who dont care about the price, they love my food and want to see me survive, but on the other hand they want quantity as well. I have spoke to many of my customers regarding upping the size of my pizzas and they love it. Back in the 80’s when my parents first opened their first shop we was banking it, until LC came out with the BOGO free deal, that killed us, so my father did exactly what I am doing. he upped the size of his pies and we were back in the biz. Anyway the moral of the story is you cant please everyone, but the ones you can please you basically have to kiss their a… just to keep them coming back. Will write more later when I have more time on my hands.

Sooooo . . . you are not cheap pizza, but quality pizza. Up one direction they want quality and the other they want cheap. The $10 pizzas are doing you in, so you run $5 and $6 specials. You’re only busy when your run the $5 and $6 specials. So to increase overall business, you are going to increase the size of your pizzas and keep the price the same?