I finally change my price structure.

Mike, Our drivers average about $15-$16 per hour and, as mentioned above, drive my cars and burn my gas. On busy nights they make up to $35 per hour. We have never had trouble finding drivers.

One of the key elements of succeeding with a new price structure that accurately reflects costs is to focus the marketing message on the product and service rather than the price.

Do not expect overnight results. A new direction in a marketing campaign will take several months to take hold.

Talk to your employees about a strategy that focuses on quality and service. Employees are great parrots; if you give them some sound bites about value, quality, service etc you will be suprised how often you hear those things when you overhear them on the phone respsonding to customers questions.

Steve great point about selling the product and the service behind it. You are so right about sound bites making a difference. It is just like selling any product, you need to talk it up and get people interested and excited about what they are getting and not focus on just the price. Look at what people are willing to blindly pay for when they go out too eat or for entertainment. You can drop a lot on products that are marketed correctly and not just a description with a price listed next too it. Large companies spend billions too make sure you buy the items they want you too. How? They talk it up and get you wanting too pay what they want for it and when they want you too. You need to make the price adjustments more than just an increase…it needs to be a total campaign that all of your employees are on board with. How do they answer the question: “so I see the prices went up?” Do they say: “yeah” or do they say something comprehensive and justifiable to support the new price structure. Like stated before…you will have complainers, lose some, and gain others. The realization of it all is that this new price structure is to make the business sustainable and viable and not just lining the pockets of greedy owners.

Do you guys and gals allow delivery customers to redeem coupons?

The Pizzeria I am purchasing only offers coupons to pick-up or dine-in customers and accepts competitors coupons (but only Indy competitors).

It seems to be working

Mike, of course we do. Delivery is 2/3rds of our business. We do require that the coupon be mentioned when the order is placed… not just presented at the door.

We are the same as Steve on this, coupon must be mentioned when ordering on delivery, otherwise, an unscrupulous driver could have a carload of coupons and making a litle extra for himself/herself on each run.

We do not match coupons, there are too many people out there giving pizza away.

Rick

How about an unscrupulous insider adding coupons to orders and pocketing the difference?

There are good, legitimate reasons for requiring the mention of coupons on the phone, but let’s not single out one group of employees as fraudsters.

You know Rick, I think you are just fine with your post as is. I would say that for every one coupon that some “insider” slips into the mix for a couple of dollars…there are one million coupons that the angels of the roadways use to STEAL from their employers. Call it like it is! :!:

Note: This post is not directed towards any one person and is just a general observation.

In my store, as in many that I know of, there are camera systems in place that curtail this kind of activity from insiders. If I were able to have a camera for driver transactions I would be less inclined to agree with Rick but as it stands he has hit the nail on the head.

PPG.

It would be as difficult for an insider to pull this off as it would be easy for a driver to do it. Not making any judgements about the people, just the logistics of it. No employee can go back and edit a transaction so the drawer would be off if an inside person tried this. If a driver was allowed to come back from a delivery and say to me “oh by the way they gave me this “Free Stix” coupon when I got to the door so I subtracted it from the ticket…” now there would be a trail and the drawer would not be off. Since we do not allow coupons to be added at the door it is a non issue.
There are things that insiders could do easier than drivers and things drivers can do easier than insiders, and things they both could do just as easily. In addition to trying to only hire honest people, we attempt to minimize our exposure for when we screw up and hire a dishonest one. Also the question was about accepting coupons on delivery, in relation to pricing structure.

People who steal are going to at least try it no matter what the circumstances. It is not fair to lump any group into categories such as “thieves” or “idiots.” This is stereotypical and unacceptable. What if everyone lumped indy pizza owners into categories such as “a-holes” or “autocratic?” This (of course) is directed toward the board in general.

As a GM, I had an employee steal, and yes it was a driver. He was caught on camera after my till was short several times over a period of a month or so. I fired him, and I will admit I enjoyed doing so as he caused me much grief. Still, I do not believe that stereotypes should be attributed to one particular group.

I agree that coupons on delivery orders must be mentioned on the phone. If the customer forgets, then he or she can call the store when the driver gets there. No “oh by the way” coupons should be accepted after the driver gets back. And I believe that coupons for delivery orders are a must. It will let the customer feel better about such things as delivery charges and tips. If the customer believes that they are “getting over” on the store by using a coupon, let them believe it. They will call back again, and that is the most important issue of all.

we are getting ready to have a price increase that also includes an increase from 1.50 to 2.00, currently we get .50 and the driver gets 1.00, new rates are going to be .75 and 1.25

We only have coupons for something for frr or for upgrades - no cash off amount.
Order takers are responsible for writing on docket the coupon and drivers are required to collect coupon and staple to order when paying in order. No docket from the driver then no delivery fee paid for that delivery. They know the rules and signed up on these as outlined in their job description.
I find cash off too tempting for someone to rort the system.

Dave

Hey Rockstar, let me know how that goes! I’m about 99% sure I’m going to do the same increase this summer ($1.50-$2.00), but I’m currently in the process of decreasing my coupon savings, so I’m a bit scared of this “double whammy” scaring a few people away

Hi Dave!
Do you have a way of differentiating between “specials” and “coupons”? I would absolutely love to start having every coupon be accounted for but I have a few problems. My daily specials are usually the same things I have on my coupon flyers so the driver would have nothing to collect. Also, during busy times, I dont want to have my driver waiting at the customers door for a few extra minutes while they search for the coupon. Do you ever have any trouble with these issues?

Calz
We have specials on our menu so most people order them. Our coupons are 3 to a DL size leaflet, one for each month. Current ones are "buy 3 Large / Family pizzas and get a small Hawiaan pizza Free; Free 1.25lt drink for pizza orders over $30 and Free Upgrade from Large to Family size (excludes any deal prices) max 3 pizzas.
When ordering for delivery the customer is told they need the voucher ready or they won’t get the special offer. Majority of time people have it ready.
Dave