Having the right price for your beverage offerings, or any offerings for that matter, can capture maximum revenue for your restaurant or bar! Pricing studies can help us find the optimal price point for your offerings and ensure you are reimagining competitors. Patrick Henry Creative Promotions can put your pricing to the test and identify opportunities for increasing revenue. Here’s a little Q&A with our Director of Beverage Operations, Kurt Moody, to give you more insight on pricing studies.
1. WHAT IS A PRICING STUDY, AND WHY DO CLIENTS ASK FOR IT?
A pricing study collects various pricing information from a defined competitive set in a certain market(s). The collected data is used by an account to determine pricing strategy and pricing tiers within beverage categories. The data can also provide information regarding brands sold within categories by competitors.
2. WHAT IS THE OVERALL PROCESS FOR A PRICING STUDY?
Pricing data is collected in person at each competitor location, through site visits and direct conversation with bartenders or servers. This delivers more accurate data than phone calls or online information and also provides a first-hand experience of the location’s environment and clientele that can be used as background information when analyzing prices.
3. HOW LONG DOES A PRICING STUDY TYPICALLY TAKE?
For the data collection phase, this process can take approximately two to three days in each market, with visits to six competitor locations. Each competitor visit lasts between one to two hours.
4. HOW MANY MARKETS DO YOU RECOMMEND VISITING AND WHY?
In my experience, it takes three markets for a national brand to determine a sound pricing strategy. This allows a high, middle, and low-priced market to be evaluated (e.g., New York City, Dallas, and Detroit respectively).
5. WHAT TYPES OF IMPORTANT INFORMATION DO CLIENTS TAKE AWAY FROM PRICING STUDIES?
Pricing data is collected across all beverage items, alcohol and non-alcohol, and contain over 115 individual price points. These items include but are not limited to:
- Wine by-the-glass and by-the-bottle pricing across six tiers of wine – House, Entry, Mid-Level, Premium, Super Premium, Ultra Premium.
- Beer pricing for ten categories each of draft and bottle – Domestic, Crafts, Import, Specialty Imports.
- Cocktail pricing in ten drink categories – House Margarita, Top-Shelf Margarita, Mojito, Martini/Cosmopolitan, Tiki/Punch, Signature Cocktails, Sangria, Mule, Long Island Iced Tea, Lemonade/Cooler.
- Spirit pricing in six categories, across six tiers – Well, Call, Premium, Super Premium, Ultra Premium.
- Non-alcoholic beverage pricing – teas, lemonade, mocktails, juices.
This information is customized for client and can be modified based on each client’s needs.
If you’re interested in learning more about pricing studies or any of our other services, please contact us at firstname.lastname@example.org or call us at 281-983-5500.Author: admin
Category: Behind the Bar