Essay on the Pricing Strategy of the Restaurant

2021-08-10 09:05:57
3 pages
553 words
University/College: 
University of California, Santa Barbara
Type of paper: 
Essay
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The pricing strategy for our product is tailored towards ensuring that all consumers who are willing to pay premiums for healthy food. These products are Steak seasoning, fajita, seafood and bacon flavored products. This section gives the various reasons behind the prices of our products.

To begin with, though, we charge premium prices, the prices are not high compared to the various health benefits and the cost of various ingredients used in preparing our food. The prices, therefore, is meant to cover the prices of agricultural production of various farm products. Since our main aim is to supply healthy food, we all use organic products, which are relatively more expensive compared to those farm products, produced using organic fertilizers.

Our products pricing psychological pricing, dynamic pricing and market skimming. First, we will price of products differently based on the health benefits and the availability of the products in the market. Those products have more nutrients and, therefore, more health benefits will go for higher prices. Also, the prices will all be divided based on the quantity. Based on the proportion of various quantities of ingredients used the maximum price of the products should be $11 per 10.0 oz for the most healthy and the scarcely available products. Different prices might, however, be arrived at if the customer orders products with his/her specification of the quantity of ingredients to be used. If the ingredients proved to more expensive, then the prices may be adjusted accordingly. This may make the products expensive than the premium prices charged for those products offered by the business to the overall market. This dynamic pricing will make our product competitive.

The other factor to consider is the market target since target market is the young and healthy individuals and middle Aged people with low sodium intake. It is important for the prices to reflect their financial ability. The young individuals may be dependents of their parents or caregivers and, therefore, the prices should be made favorable to them. Also, prices friendly to middle-aged people who due to their health condition they are forced to use such products. These people should not feel that they are being exploited due to their health status. Because we will be using a relatively expensive packaging method of the transparent bottle, this factor is likely to increase the price of our product.

Due to the above consideration, the prices of our products should be as follows: products made of seaweed sea salt go for $11.97( 2.7 oz). Steak seasoning for $10.00 ( 2.7 oz) Fajita Seasoning for 10.5 ( 2.7 oz), bacon flavored seasoning for $9.00( 2.7). For psychological pricing, the price, the prices larger quantity should be slightly bit reduced as the quantity of the products goes higher.

In conclusion, it is clear that pricing strategy used will ensure that enjoy a competitive advantage in the market. Because our products are tailored to different sectors of the market, the employed and those depending on other individual can afford the products. Also, since our target market is not characterized by intense competition, the pricing strategy used will generate enough revenue which will ensure that the net profit is higher, as well as the paying enough money to our suppliers. The generated profit will go a long way in ensuring that we improve the quality of our service through future innovation in the food industry.

 

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