Electronic House Call - November 22, 2002

ELECTRONIC HOUSE CALL - November 22, 2002

The travel season is winding down for me. I spend the weekend in Phoenix, then join Joel Cohen in Louisville, Kentucky for the last Odd Couple Marketing Workshop of the year on Monday. Looks like I will get my 100,000 miles again this year. (I don't know if that is good news or bad news ... but it sure makes the trips to Italy a lot more affordable!)

LEGITIMATE AT LAST!
According to a recent Gallup poll, the restaurant industry -- along with the computer industry -- topped the list of US business sectors with the most positive public images. Only 8% of those surveyed gave the restaurant industry low marks, the lowest percentage of any of the 24 business sectors profiled. The oil/gas, health care, legal, pharmaceutical and telephone industries received the lowest industry-image ratings.

My question now is how can you capitalize on this information?

THE NINES HAVE IT
Are you leaving money on the table ... money that your guests won't even miss? If your menu prices end in anything other than a 9, you probably are. The conventional wisdom used to be that (for prices under $5.00) people only recognized price breaks at .25, .50, .75 and .95. Now it appears that .29, .59, .79 and .99 are not perceived as higher prices. Just this simple change can put 4 cents (or more!) to the bottom line on every item sold. So if you are selling an item for $4.10, you could probably get $4.29 and nobody would even notice!
But wait, it gets better. For prices between $5.00 and $10.00, the only price breaks that people notice are at .59 and .99. Over $10.00, prices that end in .99 are the only price breaks that have any significance.

Thanks to consultant Bill Main (www.billmain.com) for reporting the basic research. If you like ideas like this, you will LOVE the book, "50 Proven Ways to Build More Profitable Menus" that includes more ideas from Bill plus nine other leading experts (including me!) For more information and ordering information, go to www.restaurantdoctor.com/books/books.html.

COOL IDEA OF THE WEEK
Here is a great way to be kid-friendly without having to install a play area. Bring over a big stuffed bear to "dine" with the kids. The Family Buggy in Livonia, Michigan has several large stuffed bears. When there are children at the table, they pull up an extra chair and bring over one of the bears to "dine" with the children.

They started with one, immediately had to get a second and probably have a third and fourth one by now. The kids are excited and the restaurant has a point of difference from competitors. (They also sell the bears ... to the grandparents ... for $200 each!)

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