Restaurant Pricing Methods

4. Having a good product and environment to sell your product are essential to the success of your restaurant. Finding the right price customers are willing to pay for your products is as important. Evaluate the different methods of pricing you could use in determining the right price for products. What other pricing considerations would you have to take into account in making your decision? (Pass 3.1)

Price is expressed in the currency of the value of goods, the amount payable for a certain product.

The pricing method

a) Pricing on the basis of cost

The advantage of the method of pricing costs are:

• Simple, easy to calculate because the seller knows the cost rather than market demand.

Seller is not change prices when demand changes. The

The demand curve represents the relationship between two variables closely price and demand. Often the relationship between demand and price are inversely related. But for the prestigious commodity prices rise again accompanied by increased demand estimation method

• Determine the cost per unit of product

As defined above, cost is an important base for restaurant valuation based on the principle of cost.

The cost of a product unit or a unit price of the product is important bases of valuation. The cost of a unit of production (average cost) with fixed costs plus variable costs

• Analysis of cost, price and product competition

Unit cost is the lower of the purchase price. Market demand determines the price on access. Now the company needs to find out the prices of competing products as a basis for determining the selling price for their products. Restaurant also needs to compare its cost structure with the cost structure of the competitor to find out the strengths and weaknesses. In addition, also need to understand the quality of competing

Here let 's see SWOT analysis is often used in specific cases:

- The conference brainstorming ideas

- Solve problems (structure, resources, labor productivity, corporate culture etc.)

- Development Strategy (competition, products, technologies, new markets etc.)

- Scheduling

- Decision making

- Assessing the quality of the product

- Review opponents

- Personal development planning

IMPLEMENTATION SWOT

SWOT is a useful tool when they are applied to solve problems in many different circumstances. It 's time to delve more about SWOT to use this method most effectively.

First, SWOT structured as follows:

Analyze SWOT Positive / Beneficial in achieving goals Negative / Harmful in achieving goals

Inside

Factors arising from internal Strengths need to be maintained, using them as a base and leverage future Weaknesses need to be repaired, replaced or terminated

External

Factors arising from the surrounding environment Opportunity to be salvaged, priorities, timely capture and development to build on these opportunities Threats should give these Threats in order to plan out the contingency plans are, resolve and