Coming up on the anniversary of the upturn

[bodegahwy]

In somewhat remote resort towns the economy arrives 6 months to a year later than it does in major markets. We were booming through the summer of 2008… the real slide started after the Christmas holidays of 2008… and then it keep sliding… for 2.5 years.

The first “up” month was June 2010 which was up 2% followed by July at +4%. In the year since then we have seen a couple of flat months and one that was down 4% but the other 8 months were up and in recent months up by significant amounts for a business that is 12 years old. Feb, Mar,and April were all the 3rd or 4th best ever for those months. We still have a ways to go to get near the numbers we did in 2006-2008 but we are tracking now in the range of up 20% or more to last year…

A load off my mind!

I have been working on a post mortem of how we responded to the decline… what we did well and what not so well… I think I will recognize a downturn if it happens again some day and respond faster by unwinding costs. If anything, you have to pay closer attention to quality and service when things are tough… and I also have a better appreciation of the length of time it takes to see results from marketing and other changes to a business.

Still learning.

 

[paul7979]

2008 was my best year ever followed by an 8 percent decline in 2009 and another 7 percent decline in 2010. After having a decent January this year and a good February, I had my best March ever and second best April ever. I’ve set up a marketing plan that I hope will keep the sales booming and I expect 2011 to end with record or near record sales.

 

[brad_randall]

Just had our best overall month ever at our Campus store in April and narrowly missed doing the same with our residential location (but still best ever April there). January and March at both shops set sales records for those respective months. February was the best since 2008.

April was so good that company-wide sales were the best since 2008… and we had 3 stores back in 2009!

 

[wa_dave]

We rode through the GFC downturn fairly good with single didgit declines but the coming out has been very slow.
Our Federal Government did some huge Impetus schemes that worked at the time but we are now paying for it. Plus mortage rates have increased from 3% during the GFC to almost 7% now which has put the breaks on any discretionary spending. Most small businesses are doing it tough at the moment as utility costs have soared by over 40%, wages are unbelievably high due to a resurgence in our mining industry where wages are hitting $150k + p.a. - everyone wants to go mining for the big pay or want that level of wage anyway.
Everytime we get a glipse of the light at the end of the tunnel we get hit by the freight train coming head on.
Profits are down to a minimum are we are now marking time money wise, but we are seeing some increases in sales. Just need to keep trimming costs.
Selling up is out of the question as small business sales are dead and what are selling are way below what they are worth.
Just trim, review costs, adjust and market hard to bring new users in.

Dave

 

[bouldercreekpizza]

To those that posted, is the increase in gross $ales an increase in number of pizzas/volume or an increased gross due to charging higher prices? How much have your prices changed since 2008?

Personally, although my sales dropped in 2009 and 2010, the net was up due to decreases in some commodity prices such as cheese. However, this year the wholesale commodity prices are up quite a bit.

 

[wa_dave]

bouldercreekpizza:

To those that posted, is the increase in gross $ales an increase in number of pizzas/volume or an increased gross due to charging higher prices? How much have your prices changed since 2008?

Personally, although my sales dropped in 2009 and 2010, the net was up due to decreases in some commodity prices such as cheese. However, this year the wholesale commodity prices are up quite a bit.

Our last price list was Nov 2009. Commodity prices have soared eating into profits. The only reason we are staying steady is due to selling more higher priced gourmet pizzas.
Since the downturn our sales on sides have decreased, selling a quarter the volumes of ribs, 25% drinks and pastas and less garlic breads. We have chocolate bars in the drink fridges and these were really good impulse lines but these have all but dried up in the last 15 months.
We are selling similar volumes of pizzas but far less sides.
Dave

 

[bodegahwy]

Our menu prices have not changed in two years. This masks the fact that we offered more agressive coupons in that time means that we really have had a decrease in pricing in that time.

We are unwinding that now and going back to more typical offers in lieu of a price increase in response to higher prices on food.

 

[bodegahwy]

Another two weeks gone by. Still trending up. Looks like the full 12 months from June 1 will be up by 10%.

 

[system]

Good too hear Steve! :mrgreen:

 

[brad_randall]

bodegahwy:

We are unwinding that now and going back to more typical offers in lieu of a price increase in response to higher prices on food.

We’re getting ready to raise the price of our main package deal from $10.99 to $11.99. That still doesn’t get it down to the percentage I’d like our specials to be at. If these levels are the new reality for food prices, it’ll have to move to $12.99 the following year just to catch up.

Also, we’re going to increase the per-topping price by 10 cents across the board. We haven’t raised any of our base prices in over 2 years and flour/cheese/pork prices are telling us it’s time.