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Anybody not discount?

Perception is such a factor here. People do not read or add up the items they only look at the discount or even better… the FREE items. $3 off…so what. Wait… I get a FREE something…SWEET! So last month the large pepperoni was $18… damn… that’s expensive. Oh… I got a coupon for one large pepperoni pizza that is reg priced at $23 but I have a $5 off coupon! What a deal. That’s like over 20% off! One large pepperoni and free breadsticks for $23. What a deal!!! 😉

Just a Subway comment… for Christmas my wife put together little gift baskets for all the mall rats she manages and one of the items was a Subway gift card since they have one in the food court and with 20 employees she needed items that would be liked by all. Food is always an easy one. She sent me to get the gift cards and I also went in with the $5 in my mind. I asked the girl what a sub with chips, drink, and a cookie would cost with tax so I could cover a full meal per person. She asked do I want the basic sub or to cover any sub they wanted. I said cover their choices. She said with tax… $11.57 each. Ok…and people want $5-10 large pizzas! WTF is wrong with this picture? :roll:
 
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bodegahwy:
BTW, Macdonalds discounts all the time. What do you think the dollar menu is?
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You are right, they do discount all the time NOW. But it has not always been that way. In the early days of the franchise, in your franchise agreement, your were prohibited from discounting at all!
 
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i just got my McDonald’s coupon book in the mail…

As far as Subway, the 5.00 deal has really hurt a couple of my Subway clients…When the deal is not running folks still want the deal and when they can not get it, they buy the most basic of subs…The constant discounting has dropped their average sale…
 
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I do not know when it was started but the “fine scottish restaurant” has had “sandwich only” and “meal price” as well as “supersize” for a long long time. When you combine sandwich, drink and fries and give a combination price… that is discounting. Nothing new at Macdonalds. They just used to enforce that the franchisees used the SAME discounts not NO discounts.
 
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JohnAndrew:
Subway $5? All I saw on TV through the month of December was Subway selling subs for $2. What is this going to do to their brand over time? Insane? I know I’ll never want to pay full price for one of their subs again. Not that I can remember the last time I did.
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In the store, you see the devil in the details. TWO sandwiches are $2 . . . a meatball with 4 half-ounce meatballs and a little sauce . . . . and a coldcut with probably 2 oz of meat. There you go . . . there is no such thing as a free lunch. Then they have several price levels for several types of sandwiches. The most popular are NOT the lowest bracket (hence I cannot take the wife there for cheap sandwich)

the model I want to point to is The Big Grocery Store deli’s, think Kroger and Publix. They sell 12" sandwiches with probably 6 to 8 oz meat plus cheese and toppongs for something like 6.50 plus tax. That is a huge sandwich, and a very good value for sandwich eaters. They can do it because their operations costs are paid by the groceries and such in the rest of the store . . . so they can sell inexpensive (relatively) items like this in the deli. They could get way more but don’t need to.

Pizza places need to use the same model. Sell the prime menu items to pay the bills and use the other items at a slightly higher COGS to generate volume of sales, and therefor moving more $$$ to the bottom line. Sides and ‘other items’ can be used quite strategically to generate add-on sales and drive ticker averages up. Use them intentionally and don’t end up being a victim to them. you will win large.
 
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McDonald’s has been increasing prices significantly in my area. The new president used to be the country president of Apple, so he’s moving the company to the Apple business model where the customer has to wait, the product is smaller and more expensive and if you don’t like it, well, he doesn’t care.

They gradually reduced the size of portions until it’s almost comical. Imagine a McDonald’s with 15 workers behind the counter and one register open, staffed by a new employee. The customers are lined up out the door, it takes 20 minutes to get your order and you have to stand to eat it since they closed off 2/3rds of the seating area so they don’t have to heat it, light it or clean it.

So, maybe the lesson is that people are easily manipulated toward higher pricing if you just do it? :mrgreen:
 
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Hi,

Why not give discounts if you get something in return, like 10% off when the customer gives you a Facebook like, or tweet you?

Mark
 
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I just wanted to share a “discount” that was offered at the movie theater last night. I took my daughter to the “We bought a zoo” movie…by the way… not a kids movie at all! As I stood in line waiting to spend $40 on $2 worth of treats… I read the big ad above my head. It read: Buy a large popcorn and large drink and get a FREE candy for only $14.75! First… WTF! $15 for popcorn and a coke! That said… if you look at the regular menu board… a large coke and popcorn is $12.25 by itself. So I ask…where is the other $2.50 that you are charging to “BUNDLE” this great deal for me? Yes it will save me about $1.50 over ordering all three separately but where the heII is the FREE part of this? I would also like to point out to all those in the world that complain about paying $20 for a pizza…what it cost for me to take my daughter and mother to a movie last night.

3 Tickets = $27.75

1 Large Coke, 2 Small Rootbeers, Large Popcorn, Bag of Hershey Drops, Oh… Alvin Chipmonk Straw… and my daughter had to then get Pretzel bites = $34.50

Total = $62.25!!! WTF!!!

Movies like all sporting events and concerts are seriously out of control. I do not think any actor is worth $10, 20, 50… million to make a movie. I understand that production costs have soared but what we pay a few people and a few athletes is crazy. We as a country need to rethink all of this as it only is getting worse! :x

My uncle works for the Chicago White Sox and his office is one of the skyboxes. Love going to games there. Last time was with my daughter and I asked the “hostess” that was serving us if I could get a hotdog for my girl. Just the normal ballpark thing…right? Wrapped in foil…$3-4 or so! Nope… she comes back with this hotdog on a platter with custom White Sox shaped french fries, a big dill pickle and this custom spicey ketchup… and I quote: “that will be $17.50…I will just put it on the suite’s charge.” :shock:

I grew up in Chicago and remember as a kid going to games, shows, concerts, etc… but I never remember mom having to fill out a credit app when trying to buy snacks! Or dad getting a pawn shop loan to cover the $1000 needed to get 4 normal seat tickets to a Bears game. This is so out of control people! :!:

Sorry for the sidetrack and rant… :x
 
They are only “out of control” because we with the cash give it to them…cash is king…Without our cash these corporation would be brought to their knees…But that will only happen if enough folks stop handing it over…
 
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Last year we closed our old store and reopened a full restaurant with all of our original menu plus a full Italian menu. Since October, I’ve only offered a daily special, nothing else. Not a single coupon, just sending out menus and doing other marketing. My pizza sales are down, but my daily sales are much, much higher and we have a booming delivery business that is just going to get bigger.

I’ve not once heard of someone asking about deals for non pizza meals. It’s nice to get away from pizza culture and focus just on the basic marketing.
 
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