Short advice from Donald Burns on pricing strategies to increase perceived value and profitability without large cost changes. Recommends psychological tactics such as removing dollar signs to make prices feel smaller and using decoy pricing by placing a slightly higher-priced item near a more profitable option to steer guests toward higher-margin choices.
Now, pricing can be a real delicate balancing act. While you want to ensure profitability, you also need to strike a chord with your guest. Implement pricing strategies that play to the psychology of perceived value. For instance, removing dollar signs from the prices can actually make those items appear less expensive and more approachable. Additionally, using decoy pricing by strategic placing a slightly higher price dish next to a more profitable one can really influence the guest to opt in for the more profitable dish.
If your restaurant only works because you work 80 hours a week, it doesn't work.
