Variable Pricing Examples

Business OpsOctober 15, 2018

Variable Pricing Examples

 

Seasonal (Off Season)

During peak times of the year it is important to seek higher food and beverage minimums when selling catered events.  As an example, as Saturday demand peaks during wedding season in May you quite likely will be able to set maximum prices for your menus.  Conversely, during off season it may be prudent to offer lower price menus to make your offerings more attractive and competitive in your local market.

This same theory could be applied Sundays and Mondays throughout the year.  A lower food and beverage minimum may be required to attract customers to do business on your off-peak days. 

 

Quantity

Larger functions can produce bigger profits since the fixed costs for the facility are covered and with the exception of food & beverage costs, anything above that fixed cost may contribute directly to the bottom line.  Thru variable pricing, you can tailor menus to accommodate these larger groups and show a benefit of doing business with your facility.

Small groups will pay more on peak days but may be shifted to low demand days to make it more reasonable for them to contract catered events with us.

 

Loyal Customer (Top 10 Account)

Give me a price?  Our top 10 customers make up 80% of our revenue within our catering operations.  Because of the amount of business these organizations give us, at times we may need to work within the price structure and provide a specialty menu that meets with our customer’s expectations.  Our patrons should not be viewed by one event that has a discounted price, but by the amount of business they do with us throughout the year. 

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