Running a cloud kitchen successfully not only requires good branding, advanced equipment, high skilled chefs, or high investment. It also depends on how the menu is designed, how the prices are structured, the offers the kitchen is providing, everything is essential.
Pricing is a crucial part and most food business owners don’t focus on this much. There’s a pricing science that is applied while setting price tags on each and every item served by your cloud kitchen.
In this article, all the pricing hacks that are used for setting a good price tag for your food items are explained.
1: Have the first option with a high price (to be used for food aggregator)
- Always set a high price in the starting by default as this gives the customer a reference point of the high number and this way he will be perceiving low prices items mentioned below as a good deal.
For Example, Faasos
2: Offer a decoy option
- Have a bad option that none of them will want to buy but still keep it to make other options look good.
For Example, McDonald’s
3: Display prices in small font size(website only)
- Our brain perceives large font size as bigger and has more magnitude.
- We should avoid fonts of a large magnitude but when offering a crazy deal or discount, we should write with a big font size in order to grab the attention of the customers.
For Example, Dominos
4: Remove the comma
- Researchers found that removing commas (e.g., $1,499 vs. $1499) can influence make your price seem lower.
- Because when a comma is included, we will read 1,500 as one thousand five hundred but without a comma, we will read it as fifteen hundred. Less the number of words, the lessor the brain perceives.
For Example, Biriyani by kilo, Behrouz biriyani
5: Introduce features if you want to increase the price
- If you want to increase the price of an object first increase the features or benefits then increase the price. Simply increasing the price can affect your sales as when a customer orders from you, the price of certain food items gets inherited in his mind. So, observing immediate changes can stop him from ordering from you.
For Example, if you want to increase the price of a chai, give an offer of biscuit/cookie along with the chai in the initial stage. Eventually, you can keep the price and stop giving free cookies with the chai.
6: Reduce the last digit by one while pricing
- The last digit of a number decides the magnitude if the amount and when it gets reduced by one, researchers say it seems less to people. (even if the difference is 1 from the actual value, still the human brain perceives it as less amount)
- A price tag of 2000/- may seem a lot but when having a price tag as 1999/- our brain perceives it as a lesser amount.
For Example, KFC, Dominos
7. Combo pricing to increase the ticket size
- Many big brands use this hack to increase the overall expenditure of the customer while doing the billing.
- Once you choose the item, they will start asking you to add several more items to increase the ticket size.
For Example, In McDonald’s, the staffs are so well trained that when you ask for any burger or any meal, they will keep on asking you to add fries, to add any shakes. This is done so that the ticket size per order gets increased.
I hope this article will help you to structure your pricing appropriately. If the blog is worth enough to read, then do give a thumbs up and share it with your mates. And do comment below your feedback!
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