Comments on: Will the New Marketing Strategy for Higher–end Table Service Restaurants Work? http://radiantblogs.com/blog/new-marketing-strategy/ Technology Blog for the Point of Sale Systems, POS Hardware and Software Industry Sat, 21 Aug 2010 12:59:34 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Steve Adam http://radiantblogs.com/blog/new-marketing-strategy/comment-page-1/#comment-187 Steve Adam Mon, 24 Aug 2009 17:23:03 +0000 http://radiantblogs.com/blog/?p=506#comment-187 One thing you can always count on is that history and it's lessons always seem to repeat itself. Reducing or slashing prices is usually a knee jerk reaction to an economic condition. Trying to hold or win market share on the basis of price discounting is a lazy approach to marketing strategy. I've only known it to be applicable in only one situation, and that is where you have a definite cost advantage (either fixed or variable) over your competitors, and your product or service is one where customers are very price sensitive. A reduction in pricing has always been a more reactive than proactive approach to marketing strategy. The real question you need to ask yourself is "How can a restaurant successfully charge $200 for a steak dinner (yes this price is real) when another steakhouse across town struggles to sell their steak dinners for $9.95?" Do not fall in the trap of thinking that when times are tough you can cut prices and make it up in volume... or at least be "competitive." It's all about margins not volume. One thing you can always count on is that history and it’s lessons always seem to repeat itself. Reducing or slashing prices is usually a knee jerk reaction to an economic condition. Trying to hold or win market share on the basis of price discounting is a lazy approach to marketing strategy. I’ve only known it to be applicable in only one situation, and that is where you have a definite cost advantage (either fixed or variable) over your competitors, and your product or service is one where customers are very price sensitive. A reduction in pricing has always been a more reactive than proactive approach to marketing strategy. The real question you need to ask yourself is “How can a restaurant successfully charge $200 for a steak dinner (yes this price is real) when another steakhouse across town struggles to sell their steak dinners for $9.95?” Do not fall in the trap of thinking that when times are tough you can cut prices and make it up in volume… or at least be “competitive.” It’s all about margins not volume.

]]> By: Jessica Lundberg http://radiantblogs.com/blog/new-marketing-strategy/comment-page-1/#comment-125 Jessica Lundberg Tue, 18 Aug 2009 13:42:30 +0000 http://radiantblogs.com/blog/?p=506#comment-125 One thing's for sure - it will definitely be interesting when the economy has turned back around to see if consumers will have gotten used to expecting these deep discounts. One thing’s for sure – it will definitely be interesting when the economy has turned back around to see if consumers will have gotten used to expecting these deep discounts.

]]> By: Harold (SellMoreMeals) http://radiantblogs.com/blog/new-marketing-strategy/comment-page-1/#comment-123 Harold (SellMoreMeals) Mon, 17 Aug 2009 19:35:41 +0000 http://radiantblogs.com/blog/?p=506#comment-123 I don't know that this is such a great idea. Though I'm all in favor of finding ways to cut costs and make meals more attainable to other, but if it cuts into your bottom line then it probably will not help in the long run. Here's something to think about from the Wall Street Journal: Restaurants Burned by Deep Discounts http://online.wsj.com/article/SB124761008720841741.html I think one of the best things that restaurants can do is continue to build close relationships with their customers. Find ways to encourage them. Focus on service and brand so that your customers carry that out the door into the world. I don’t know that this is such a great idea. Though I’m all in favor of finding ways to cut costs and make meals more attainable to other, but if it cuts into your bottom line then it probably will not help in the long run.

Here’s something to think about from the Wall Street Journal:

Restaurants Burned by Deep Discounts
http://online.wsj.com/article/SB124761008720841741.html

I think one of the best things that restaurants can do is continue to build close relationships with their customers. Find ways to encourage them. Focus on service and brand so that your customers carry that out the door into the world.

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