just my view on pricing

[The_Fat_Boy]

we have been running these specials for the past few years

2 Large 2 Topping for $18.99
3 Large 1 Toppings for $23.99

i am trying an experiment for the next 2 months we are advertising

Large Pizza $7.99 (no print on the # of toppings)

so when the customer calls we advise them that the price is for 1 topping

if they say well PH I can get 3 toppings for $10
we advise well our 3 topping price is just $10.49 and you dont have to drive 10 miles
and our dough is fresh not a frozen puck

the reason i am trying this is because most customers see the $7.99
and go
“WOW”

they just don’t do the math in their head because you see 2 = $16 3= $24

would like some feedback from my fellow thinktankers it seems price is a factor around here
we are the only pizza shop for 10miles except for the Hot Stuff pizza at the local convience
store

people drive that 10miles to get the PH, LC price point

gotta keep in my area

thanks dennis

 

[pizza2007]

Fatboy,

it seems price is a factor around here
<— Pretty much nails it. If the majority of your customers are choosing price, then if you want to stay in business, you should rebuild your product & pricing to remain competitive with those chains. You’re not going to beat PH or LC in price wars. I’d change my approach and product to be in between both of them.

To be honest, volume probably has been better in the past for you. You’re in a very difficult situation and need a boost in the local economy. I say that because volume could offset the lower margins, but you’d be lowering your margin without significant boosts in volume. That’s a recipe for failure. Perhaps the plan should be how to survive until the economy (yours!) recovers. Which could be another 2 - 5 years. If so, then determine how much margin is required for survival and then determine your product and price point. It could be a sobering evaluation.

Good Luck!

 

[piemaker2007]

fat boy,

speaking from the point of view of a customer being told of special conditions at the time of order would irratate me since it didn’t have the conditions on the advertising. I think your setting yourself up for uncessary arguements with the customer when they order. Which may or may not alienate some of your customers, espcecially if most of them are the price sensitive crowd. I saw this all the time at pizza hut on coupons that didn’t specify toppings or limited to X number of pizza’s and then limits where imposed at order time.

I would recommend if you run the ad be up front and your cusotomers won’t feel decieved or like you are trying to bait them when they are placing the order. You got them to call why take a chance of driving them off when they are almost over the finish line?

Bryan

 

[bodegahwy]

When you only advertise price, you are telling the customer that price is the only reason to buy from you. A dangerous game for indi stores. You can’t touch the costs of the big guys and if you try, you have to use the cheapest stuff you can find to do it.

Think of why people should buy from you and advertise that! You want to run an $8 special once in a while or on a box topper for return business, fine, go for it but keep your focus on what makes you different.

 

[pizzapirate]

piemaker2007:

fat boy,

speaking from the point of view of a customer being told of special conditions at the time of order would irratate me since it didn’t have the conditions on the advertising. I think your setting yourself up for uncessary arguements with the customer when they order. Which may or may not alienate some of your customers, espcecially if most of them are the price sensitive crowd. I saw this all the time at pizza hut on coupons that didn’t specify toppings or limited to X number of pizza’s and then limits where imposed at order time.

I would recommend if you run the ad be up front and your cusotomers won’t feel decieved or like you are trying to bait them when they are placing the order. You got them to call why take a chance of driving them off when they are almost over the finish line?

Bryan

Ditto

bodegahwy:

When you only advertise price, you are telling the customer that price is the only reason to buy from you. A dangerous game for indi stores. You can’t touch the costs of the big guys and if you try, you have to use the cheapest stuff you can find to do it.

Think of why people should buy from you and advertise that! You want to run an $8 special once in a while or on a box topper for return business, fine, go for it but keep your focus on what makes you different.

Ditto

 

[The_Fat_Boy]

bodegahwy:

When you only advertise price, you are telling the customer that price is the only reason to buy from you. A dangerous game for indi stores. You can’t touch the costs of the big guys and if you try, you have to use the cheapest stuff you can find to do it.

Think of why people should buy from you and advertise that! You want to run an $8 special once in a while or on a box topper for return business, fine, go for it but keep your focus on what makes you different.

so steve if this is what your saying then why do this
(statement from 10-10-10 post)

Hoping to do some business! This is a SLOW time of year for us, so getting some cash flow is a good thing right now. I also hope this will function as a “try me” deal attracting some first time customers.

or

A lot of people ordered more than one pizza or upgraded to 16". If we got a significant number of 1st time orders it would be even better.

i am doing the same thing but taking care of my customers wallets at the same time. we are not in a ski town or in a huge market area like KC or St Louis

my market is 5k within a radius of 5 miles

i am on the corner of 2 intersecting hwys and i am trying to get the travelers b4 they get 10 miles north and hit the LC, PH, or DOM

the local economy has tanked and we are running about a 35% unemployment and state system

 

[pizzapirate]

The Fat Boy:

bodegahwy:

When you only advertise price, you are telling the customer that price is the only reason to buy from you. A dangerous game for indi stores. You can’t touch the costs of the big guys and if you try, you have to use the cheapest stuff you can find to do it.

Think of why people should buy from you and advertise that! You want to run an $8 special once in a while or on a box topper for return business, fine, go for it but keep your focus on what makes you different.

so steve if this is what your saying then why do this

This difference is with the 10-10-10 thing is he was tying the ad into an event. This won’t come around again for 100 years type of thing. To celebrate this date we are going to do this one time promotion and have fun with it. Its not simply an ad selling pizza cheap. The ad makes it understood its an event.

You are just advertising price == cheap. People are not going to read $7.99 and think that must be a great tasting, quality pizza! They will think “cheap pizza”. How would anyone interpret it any differently?

You want to advertise price to your customers and then tell “us” times are extra tough in your local economy and you want to “help their wallets”. Tell “your customers” times are tough in our community and you are trying to do your part to help out. On such and such a dates we are going to offer our normally priced pizzas at $ xx. xx for the unbelievably low price of just $7.99!!! This talks to people and communicates what you are trying to do.

 

[smeagol8]

Do it on Mondays (assuming that is your slowest day). You can expand it to Tuesdays, and maybe Wednesdays, if you like how it does on Mondays. It shouldn’t adversely impact your weekends if you restrict it to those days.