lower pricing

[dash]

how many have you have lowered your prices on your pizzas in the last year?

 

[brad_randall]

We skipped our annual base-price increase last summer… out of fear, I guess. We never even considered rolling back prices.

Not sure yet if we feel comfortable increasing prices this summer.

 

[wa_dave]

dash:

how many have you have lowered your prices on your pizzas in the last year?

Why ???

 

[bodegahwy]

We have held pricing now for two years. I would not like to lower prices… too many costs associated with it (reprinting menus, re-pricing special offers) both when you go down and when you go back up. I think the amount you would have to drop to make a difference in volume would cost more than it is worth.

On the other hand, we are doing more and better special offers than we have done in the past… I think it is more effective than an actual price cut, is easier to “undo” and costs less to impliment.

 

[Rockstar_pizza]

my cost have not gone done, so NO, but like Aver’s we are not raising either

 

[perfect_pizzas]

We have not lowered our price but like others we have gotten more aggressive with our specials. Our last price increase was in the middle of 2008. The concept of a price decrease should not seem too ridiculous. Most of us raised our prices several times from 2005-2008. It was easy to do. Minimum wage went up. Gasoline went up. Cheese WENT UP. Flour WENT UP. Utilities went up. Insurance went up. Proteins went up. For the last year or year and a half we have had a lot of key items go down. From May 07 through October 08 the cheese block market never went below $1.70 and spent quite a few weeks north of $1.90 peaking out at $2.20! From January 09=present the block market has not gone above $1.70 and has probably averaged closer to $1.35. Do you all remember the $30/bag flour from 2008? We have been below $15/bag for quite some time and most weeks we are below $13. Most of our meat toppings are 10% or more below their highs. My gas bill and electric bill are significantly lower than they were 2 years ago. Gasoline got close to $4. in 2008. $2.85 is a relative bargain today. While we are all quick to raise our prices we talk down about the national chains dropping their prices at a time when our customers our shopping for a bargain. I am not advocating that we all drop our prices, but don’t discount the idea without thinking it through. The big guys are increasing their market share and we all know they are not doing it with their superior product. My feeling is that I will continue to offer aggressive specials for the customers that want/need to find a bargain while those customers who are delighted to pay menu price for my superior product and service will continue to do so. This will bring my “blended” price/pizza in a little lower than last year without actually doing a price decrease.

 

[wa_dave]

perfect pizzas:

We have not lowered our price but like others we have gotten more aggressive with our specials. Our last price increase was in the middle of 2008. The concept of a price decrease should not seem too ridiculous. Most of us raised our prices several times from 2005-2008. It was easy to do. Minimum wage went up. Gasoline went up. Cheese WENT UP. Flour WENT UP. Utilities went up. Insurance went up. Proteins went up. For the last year or year and a half we have had a lot of key items go down. From May 07 through October 08 the cheese block market never went below $1.70 and spent quite a few weeks north of $1.90 peaking out at $2.20! From January 09=present the block market has not gone above $1.70 and has probably averaged closer to $1.35. Do you all remember the $30/bag flour from 2008? We have been below $15/bag for quite some time and most weeks we are below $13. Most of our meat toppings are 10% or more below their highs. My gas bill and electric bill are significantly lower than they were 2 years ago. Gasoline got close to $4. in 2008. $2.85 is a relative bargain today. While we are all quick to raise our prices we talk down about the national chains dropping their prices at a time when our customers our shopping for a bargain. I am not advocating that we all drop our prices, but don’t discount the idea without thinking it through. The big guys are increasing their market share and we all know they are not doing it with their superior product. My feeling is that I will continue to offer aggressive specials for the customers that want/need to find a bargain while those customers who are delighted to pay menu price for my superior product and service will continue to do so. This will bring my “blended” price/pizza in a little lower than last year without actually doing a price decrease.

Oh to live in a competitive market place. Our prices went up and stayed up except for flour which came down a couple of bucks a bag. Unfortunately our local prices are fixed to the international trading price on flour, dairy etc - anything we export in volume so while our farmers return is lower our buying price remains higher. Smallgoods have been our major mover this year with increases around 15% whilst most others have stayed the same thanks to the strength of the Aussie $ at the moment. Electricity in our state went up 25% last year and will go up 31% this year as the previous government keprt prices down for 12 years, ran down the infrstructure and did a disaterous split of the electrical commission. Now is fixing and cost catch up time.
Despite any of your prices falling I would be hesitant to lower prices as it is an equaling of the lower margings when cost prices raised and retails prices were kept the same because of the less spending power of the consumer during the GFC. Now is the time to recoup those lost margins.

Dave