Page 66 - BCM July 2024

MARKETING

Mr./Ms. Proprietor, Come on Down!

You’re the next contestant on ‘Getting the Bowling Price Right.’

hoosing the correct pricing for a center is one of the pro tability. But we can’t really do it that way.
C most important jobs of a proprietor. I would say it’s Let’s look at a snack bar item, such as the notoriously
the most important, but I put building your customer expensive chicken wings. You could raise your prices high
base ahead of pricing. e two go hand in hand and have enough to meet your cost-of-goods target. “Yay! We met
a direct impact on each other. our cost of goods target!” you may proclaim. However, if
Supply and demand is a real thing. If you you did it by selling virtually zero wings, that might not be
have high demand, you can charge more. a win.
As you charge more, demand will drop. If Gross margin is di erent than cost of goods. If you sell
the increase in price outstrips any loss in six wings for $8, your cost of goods is 45% (not great).
demand, you will be more pro table. Be- However, your gross margin is $4.40. Compare that to
ing more pro table is fun. what you would make if the guest chose an alternative
However, this is not something you can to wings. Also compare that to the guest not making a
GREG do forever. If you do not build or at least purchase at all. I know they will probably choose another
PERKINS maintain your customer base, eventually menu item, but not always.

you’ll be down to zero customers. Once If selling an item like wings doesn’t make sense for your
you get down to zero customers, pricing decisions don’t center, at least at this time, take it o the menu. at’s
matter that much. better than shocking your customers into thinking you’re
Nonetheless, let’s talk way overpriced. I’ve done
about the importance of this and it’s stupid. Get
pricing and how it can the best price you can
lead to being more pro t- Centers that are open play based get without alienating
able and having more fun. have an easier time increasing your guests. Incidentally,
In today’s in ationary it’s getting harder and
environment, we must be prices because casual customers harder to alienate people
diligent about constantly have no idea what they should be these days based on what
reviewing our pricing. charged in an entertainment venue. fast-food restaurants are
Our vendors will go up on charging.
their pricing like clock- Eighty percent or more
work; that much we can of food-and-beverage
count on. Most traditional centers (mine included) are purchases today are credit card purchases. I just made
reluctant to increase prices. e reason can be explained that number up, but I’m pretty sure I’m right. e idea
in one word: league bowlers. I know that’s two words, but that people don’t think at all about what anything costs
I’m running for re-election this fall. when they use a credit card is true. at has been my
Centers that are open play based have an easier time experience from waiting on customers. If it goes on their
increasing prices because casual customers have no idea credit card, they don’t bat an eye.
what they should be charged in an entertainment facility. Nowhere is this truer than in the bar. I have the occa-
But they think it will be a lot. at’s what I think, anyway. sional drink or two, and I’m always astounded by what
If you run a center with a large league base, you’re go- I’m charged. People who want a drink will pay more than
ing to hear it when you raise prices. Suck it up. We have you think. I’m not saying to rip o people; just charge
to do it and, in truth, most of your league customers will what everyone else is charging… and they’re charging a
understand. ey see what’s going on with in ation all lot.
around them. ey will give you less pushback now than One theory for pricing is that you should always round
has historically been the case. up to just below the nearest 50 cents. If your shoe rental
Cost-based pricing is a method that’s usually used is $3.29, it could probably be $3.49 and nobody would
by manufacturing companies — companies that make notice. In most cases, people will round down. If my wife
things. ey gure out what their costs will be and set buys something for $399, she’ll tell me it was around $300.
their pricing to achieve the margins that will maximize (I’m just kidding; my wife is perfect and she’s my editor.)

64 • BCM • JULY 2024 www.bcmmag.com

064,065_Marketing_0724.indd 64 6/13/24 11:26 AM