This panic story doesn’t even make sense. So as soon as it starts to get busy and they start to make good money they’ll raise prices to drive people away?
Thinking about it more; I guess it all comes down to their marketing or it, as long as their “full” price is still competitive. Limited time offers are good motivators.
Yes. Theoretically they can drive people away and make more money if the people they haven’t driven away spend more for less goods.
Let’s imagine on a normal lunch hour I sell 100 burgers at lunch for $4. If I raised my price to $4.50, I’d only sell 80 burgers. If I raised the price to $5 then I’d only sell 50 burgers If a burger costs me $3 then I normally make $1 a burger, but at the middle price I make $1.50, and $2 at the high price.
100 burger x $1 = $100 profit
80 burgers x $1.5 = $120 profit
50 burgers x $2 = $100 profit
The trick is figuring out how changing price will affect demand without pissing all your potential customers off. Restaurants already do dynamic pricing with Happy Hour and Taco Tuesdays etc. They give a “discount” to entice more people to come in when they are less busy.
This panic story doesn’t even make sense. So as soon as it starts to get busy and they start to make good money they’ll raise prices to drive people away?
Thinking about it more; I guess it all comes down to their marketing or it, as long as their “full” price is still competitive. Limited time offers are good motivators.
Yes. Theoretically they can drive people away and make more money if the people they haven’t driven away spend more for less goods.
Let’s imagine on a normal lunch hour I sell 100 burgers at lunch for $4. If I raised my price to $4.50, I’d only sell 80 burgers. If I raised the price to $5 then I’d only sell 50 burgers If a burger costs me $3 then I normally make $1 a burger, but at the middle price I make $1.50, and $2 at the high price.
100 burger x $1 = $100 profit
80 burgers x $1.5 = $120 profit
50 burgers x $2 = $100 profit
The trick is figuring out how changing price will affect demand without pissing all your potential customers off. Restaurants already do dynamic pricing with Happy Hour and Taco Tuesdays etc. They give a “discount” to entice more people to come in when they are less busy.