Set prices to avoid mistakes – Part 1
By David Scott Peters
Restaurant Tip of the Week
Establish major price categories to reduce errors
Group products together based on their wholesale costs. Use a standard increment such as a quarter or 50 cents to separate the price categories. For example, the well price plus 50 cents equals the call price. Call plus 50 cents equals the premium price, etc. Commonly used price categories include well, call, premium, super premium and top shelf. Grouping similarly priced products together necessitates the staff learning fewer prices and reduces the errors they will make, which cost you. (Please note that top shelf liquors should be the only ones priced individually, but is necessary because the product cost can range greatly.)
David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in systems for independent restaurant owners. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.