3 More Steps To Managing Pricing: Lessons From The Restaurant Industry That Can Work For You
This week we are following on from the last post and bringing you some more steps to help stay afloat, even in a challenging economy.
Consider Price Bundling to Draw in Budget Conscious Customers and to Make a Profit
Who doesn’t love a deal? Many individuals refuse to spend money unless they think they are getting a deal. Once persuaded that they are getting a “good buy,” they will often spend more money that they originally planned. Successful restaurants know this, and so they offer bundled deals, such as the buy two entrees and get one of equal or less value for half price. Most other types of businesses have the ability to offer a modest discount to those who purchase more than one product or service, and can therefore reap the benefits when they increase their sales and earn the chance to impress new customers.
Love What You Do and Delegate the Rest
It’s important for many reasons to find joy in the work that you do. It’s also important to have a keen understanding of the costs and expenses as well as the revenue flow from your operation. This can be difficult if you are like many people and just don’t have time to sit down with your books or you just hate math; so stop wasting your time and energy and hire a bookkeeper or accountant to keep on top of the financial aspect of your business. An outsider can look at the costs of your operation with an unbiased, critical eye, and suggest solutions that are not apparent to you because you are either too close to your operation or because you do not have the mathematical expertise to see the financial picture.
You Can’t Make All of the People Happy All of the Time No Matter What the Cost
No one is ever truly happy with the cost of anything that they purchase. For some people, you could give them something free and they would find reason to complain. You will never make everyone 100% happy, and you should go into business aware of that. At the end of the day, unless you are a charitable institution with donors with deep pockets you are in business to sell whatever it is that you are selling and to sell it at a profit. Those businesses that can manage their prices and make a profit stay in business and those that don’t go out of business, this is true of the restaurant business and every other industry.
Hopefully these 6 steps will help you understand how much you need to manage your pricing, and if you find you are struggling with some aspects, give us a call.