A customer phones, and their first question is one you hate: 'How much
are the main courses at your place?' or 'What are your cheapest party
menus?'

Keep smiling! This is Sales 101: whoever asks the questions controls
the sale. Find out how many people, day and date, have they been before
and the type of occasion. Now that you've built rapport, guide them to
a choice that offers great value and gives you a fair profit.

You can do better! The economy has everyone bargain hunting, and irrational competitors with their suicide discounts make it easy to panic.

Big chains are always playing price games (3 pizzas for $19.50, McD's
new Mini Wraps, 50c coffee deals), but your pockets aren't usually deep
enough to play with 'loss leaders'.

Remember how lucky you are with all the non-standard elements included
in the hospitality mix – atmosphere, music, location, convenience,
flavour and service. If you sell hardware, groceries or books, the
product is identical, so price shopping rules.

It's True: most customers don't think of price first. Step One
is deciding on an area/type of food/theme etc, then for Step Two they
start checking the details. Eg first they decide on Italian food, then
they check websites, consult friends or remember a previous visit.

So when they look for your type of business, are you easy to find? Is
the street signage clear and the frontage inviting? Do you pop up on
Google when they search for 'Italian food in Gladstone' or 'Kids Menu
in Holmsville?' In fact many cheap operators are hard to find, so their
cut-price deals are unknown to most people anyway!

Value is the Key, and it's made up of four elements: Quality, Quantity, Convenience and Price. Clever combination of these will make your customers contented (or not). Here are some examples of right and wrong:

Wine by the Glass: the brand may be grand and the price
reasonable, but if it's a small puddle in a large glass, you will have
customers grumbling. Take care with the quantity so you don't FAIL.

The Gold Function Package includes a long list of
'extras'* at no additional cost, with less-expensive beverages and
high-quality seafood. Wrap it all together and the high price will be
seen as very good value – it's a WIN.

Your 'Steak Meal Deal' uses a cheap cut to keep the price
down, adding fries, salad and complimentary dessert. But in this
example the quality choice spoils the deal, with unhappy customers
grizzling about tough meat and feeling ripped-off: FAIL

The new Gluten-Free Menu has a range of meals designed for
people with special diets – you charge a little more to cover the
promotion. It's a resounding success, with a host of new customers
you've never seen before – they're not bargain shoppers, just hungry!
WIN

The Seafood Deluxe Platter is offered during the tourist
season, with a combination of first-quality seafood to match the views
and the wine list. It's too dear for most locals, but is an opportunity
to reap extra sales for several months of the year: WIN

The Mango Dacquiri Mousse is made from a quality pre-mix
for a few cents. Keep the size small so it's a sin-free temptation, and
sell for less than the usual dessert prices. It's also packaged in
clear plastic cups for grab-and-go convenience – watch the sales
double. WIN

It's time to create even more Value, using your imagination and skills
to ensure everything you sell is more than just a Price. You'll also
notice something interesting: if there's a time when you raise some
prices, most of your competitors will follow your lead!

*Create plenty of 'soft dollar' items to include with menus or packages
eg red carpet, plasma screens, candelabras, beverage vouchers for the
next visit etc. A 'soft dollar' item is one that costs little (you may
own it already) but has a high perceived value by the customer.

Profitable Hospitality offers management and cost-control systems
(Manuals & CD-ROMs) for restaurants, cafes, hotels, bars and clubs.
The systems are based on the extensive consulting and operating
experience of CEO Ken Burgin, and enable busy owners and managers to
set up complete operating and cost-control systems in minutes, not
months. Profitable Hospitality also runs regular management training
workshops in the areas of kitchen profit & efficiency, restaurant
marketing and functions management. A free monthly e-newsletter keeps
you up to date on the latest industry management issues. www.profitablehospitality.com.