PRICING STRATEGY2 Pricing Strategy Frank’s All American BarBeQue is a small business that is adapting to the use of Ecommerce which is a technological change that has risen in the economy(Cadden & Lueder, 2012).Below are some pricing strategies that they should implement on the two types of meals they are offering, that is, their variety of standard meals and the three-course meals served to their customers. Frank’s All American BarBeQue should maintain a balance on their high cost meals that include the main course dish, two side dishes and dessert as well as the low cost meals that are a variety of standard meals. This is because there are different classes of customers that will want to buy or order (online) a certain kind of meal depending on their preference(Hooge et al., 2017). They should also consider incorporating the triple pricing strategy whereby the menu is categorized into three; good, better and best. The good item is the least expensive as it mostly involves a variety of snacks and fast foods. The better item, which is mid-priced, is quite often the best-selling as it accommodates both the in-restaurant and take out customers. The best item accommodates a greater percentage of the in-restaurant customers. It entails expensive quality three-course dishes, desserts and wines. For maximum profitability, a restaurant’s menu should be adaptable in such a way that it is considerate to price fluctuations in the market. It is advisable that the prices are set fairly higher so as to cover for bad seasons in times of fluctuations. This ensures your restaurant never incurs a loss even during bad times when profits are low.
PRICING STRATEGY3 References Cadden, D. & Lueder, , 2012.Small Business Management in the 21st Century. Arlington, Virginia : Saylor Academy, Minneapolis. Hooge, I.E.d. et al., 2017. This apple is too ugly for me!: Consumer preferences for suboptimal food products in the supermarket and at home.Food Quality and Preference, pp.Pages 80-92.