price difference between 14" and 16"

[pizzabarntn]

have chance to open a small caryout shop in nerby town would be doing pizzas only we do 12" 16" at current shop looking at doing one size pie at second shop thinking about 14" how much cheaper would it be than a 16" this shop would be lower end dealing with a faster fill the hole type crowd.

 

[NicksPizza]

Please forgive me if you are already on top of the area of a pizza thing. I’m offering it in case it is useful to your figuring:

As far as pricing goes, you can get a gauge using the prices you currently have for 12" and 16" to have your benchmark. Use the area of each size to get a gauge of price per square inch. They should be pretty darned close if your cheese, sauce, dough and everything else is done using the same ratios.

12" 113.10 sq inch
14" 153.94 sq in
16" 201.06 sq in

So if 16" cheese pizza sells for $13.95 (.069.8 per sq in) . . . then a 14" pie should sell for about $10.70 in round numbers if all ingredient ratios carry over.

Same should go for rough costs: if 16" COG is $2.76 (.01373/inch), then 14" COG would be around $2.11.

I cannot talk intelligently about popularity of 14" size versus 16" as we have 10/12/16 inch pies.

 

[Kris]

Nick we will never tire of seeing that. It is a awesome tool and the more you post it the more I appreciate you posting it.

 

[Patriot_sPizza]

Its my understanding that the “major” pizza ops sell 12" as a medium, a 14" as a large and a 16" as an XL…

@ my old store I only sold 12 & 16…so my “stupid” customers always thought I was more expensive when they asked “how much is a large x x x?”

this store, we went w/traditonal 12/14/16 sizes and my prices are now just a bit lower than the “majors”

I feel it is easier to market this way and less confusion for the “short-bus” customers

I do, however, confuse a few, as my 16" is a “thin crust” while my 14" is a thick crust…get me some of the “NY wanna-bee’s” biz and it helps in my dough management as I use the same DB for each…

 

[NY_Pizza]

Patriot'sPizza:

Its my understanding that the “major” pizza ops sell 12" as a medium, a 14" as a large and a 16" as an XL…

@ my old store I only sold 12 & 16…so my “stupid” customers always thought I was more expensive when they asked “how much is a large x x x?”

this store, we went w/traditonal 12/14/16 sizes and my prices are now just a bit lower than the “majors”

I feel it is easier to market this way and less confusion for the “short-bus” customers

I do, however, confuse a few, as my 16" is a “thin crust” while my 14" is a thick crust…get me some of the “NY wanna-bee’s” biz and it helps in my dough management as I use the same DB for each…

I’m thinking of adding a 14" to my mix for that very same reason. All the majors are spending millions advertising a 14" as a “Large” pizza, so the perception of the average customer is that a 14" pizza is a large pie. I’ve called my 20" a Large from day 1 at my place, but am thinking that continuing to do so is just swimming against the tide - I may make a little headway, but whenever I have to stop to rest I lose whatever ground I’ve gained. So I think I’m going to start calling a 12" a “Medium”, the 14" Large, 16" XL, then my “Ginormous 20” XXL". Especially with the way the economy seems to be heading, I want to make sure the price shoppers are comparing my product to everyone else’s properly.

 

[bodegahwy]

Not all costs are tied to size. Delivery expense for all sizes is exactly the same. Labor cost also vary somewhat from a direct correlation, same for the cost of running the oven, lights, insurance, etc etc. The short version is that large pies are more profitable than small ones because of the larger average transaction size. To the extent that 14" pies take away from 16" sales you will lose money, for every 14" sale that is an “upgrade” from a 12" pie you will make money.

On our menu a 14" pie is $2 cheaper for the pie and 35 cents less per topping than a 16" and the same amounts higher compared to a 12". The net effect is that the typical difference between a 16" and a 14" is about $3 with a 3 topping pie.

 

[system]

I’m sorry math was never my subject. How did you get those numbers?

 

[NicksPizza]

Milonus:

I’m sorry math was never my subject. How did you get those numbers?

If asking about the area of a pizza, it is PI X "radius of the circle)squared . . . radius is half the diameter

16 inch pizza is 3.141 X 8 X 8 = 201.06.

Once you use these number a few times, the formula disappears from your vision, and you just remember the values.

 

[NY_Pizza]

bodegahwy:

Not all costs are tied to size. Delivery expense for all sizes is exactly the same. Labor cost also vary somewhat from a direct correlation, same for the cost of running the oven, lights, insurance, etc etc. The short version is that large pies are more profitable than small ones because of the larger average transaction size. To the extent that 14" pies take away from 16" sales you will lose money, for every 14" sale that is an “upgrade” from a 12" pie you will make money.

On our menu a 14" pie is $2 cheaper for the pie and 35 cents less per topping than a 16" and the same amounts higher compared to a 12". The net effect is that the typical difference between a 16" and a 14" is about $3 with a 3 topping pie.

Looks like this has become the “Size Matters” thread … The price difference you stated is about what I’m looking at. Sounds to me that it’s an incredibly easy upsell “Would you like to make that a 16” XL for only $2.00 more?“. Same thing for upselling from a 12 to 14”. Also, I only plan on discounting the 14" as a 2fer deal, which will actually be more profitable than selling one 20" pie, even though it’s virtually the same amount of food. Say, 2 large (14") two toppings for 16.99, whereas I normally discount the 20" 2 top at $15.99.