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The Price of Profit: Why Charging More for Cocktails Can Save Your Business
Welcome back, Brand Builders! On today's episode we dive into the world of pricing strategies for bars and restaurants. Host Jason Littrell recounts a recent experience he had at a dive bar where a simple cocktail was priced at a shockingly low $8. He questions the tactic behind this pricing and explores the idea that businesses may be playing a dangerous game of trying to outdo their competitors in terms of affordability. Jason argues that customers are willing to pay more for a quality drink and asserts that businesses should focus on making a profitable margin rather than racing to the bottom. Join us as we unpack the importance of pricing strategies and uncover the secrets to a successful and sustainable business in the hospitality industry.
The key takeaways from this audio are:
1. Many bars and restaurants are undercharging for their cocktails, assuming that customers want the cheapest option.
2. People are willing to pay more than $8 for a cocktail, especially if it is of higher quality.
3. It is important for businesses to charge what the market will bear in order to make a profitable margin.
4. By offering recognized brands at a higher price, businesses can increase their profit margins.
5. Businesses that constantly try to be the cheapest may struggle to stay in business, as a lack of profit leads to financial difficulties.
6. Profit should be prioritized in each transaction, and strategies like offers can be used to generate profit.
7. 4 out of 5 bars and restaurants go out of business within 5 years, often due to a lack of profitability.
Jason Littrell
917-993-9169
***
Check out the ultimate sales and marketing systems for brand builders --https://kmsops.com
Get the daily newsletter jam packed with actionable insights!
https://kmsops.com/news
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Know someone who needs this? Earn a fat recurring commission on referrals -- https://kmsops.com/affiliates
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By Jason Littrell
5
55 ratings
Welcome back, Brand Builders! On today's episode we dive into the world of pricing strategies for bars and restaurants. Host Jason Littrell recounts a recent experience he had at a dive bar where a simple cocktail was priced at a shockingly low $8. He questions the tactic behind this pricing and explores the idea that businesses may be playing a dangerous game of trying to outdo their competitors in terms of affordability. Jason argues that customers are willing to pay more for a quality drink and asserts that businesses should focus on making a profitable margin rather than racing to the bottom. Join us as we unpack the importance of pricing strategies and uncover the secrets to a successful and sustainable business in the hospitality industry.
The key takeaways from this audio are:
1. Many bars and restaurants are undercharging for their cocktails, assuming that customers want the cheapest option.
2. People are willing to pay more than $8 for a cocktail, especially if it is of higher quality.
3. It is important for businesses to charge what the market will bear in order to make a profitable margin.
4. By offering recognized brands at a higher price, businesses can increase their profit margins.
5. Businesses that constantly try to be the cheapest may struggle to stay in business, as a lack of profit leads to financial difficulties.
6. Profit should be prioritized in each transaction, and strategies like offers can be used to generate profit.
7. 4 out of 5 bars and restaurants go out of business within 5 years, often due to a lack of profitability.
Jason Littrell
917-993-9169
***
Check out the ultimate sales and marketing systems for brand builders --https://kmsops.com
Get the daily newsletter jam packed with actionable insights!
https://kmsops.com/news
Want people to actually show up to your events? - - https://eventnurture.com
Know someone who needs this? Earn a fat recurring commission on referrals -- https://kmsops.com/affiliates
Check out Who's My Rep -- https://facebook.com/groups/whosmyrep
bargain, cocktail, menu, dive bar, $8, special, margarita, cost, New York, facts, happy hour, offer, playing a game, bar and restaurant, neighbors, cheapest, consumer's mind, drinking less, better, profitable, market, Kamchatka vodka, montezuma tequila, margin, business proposition, go out of business, statistic, profits, transaction, strategy, brand building action.