Are You A Price-Trapper? - Canadian Pizza Magazine

I swear I live in the Wal-Mart of the pizza industry. Up until about six months ago there was nothing but chain pizzerias serving the community – a reserved choice between some “quasi-mafia” monikered assembly-liner or a “jazzed-up” mediocre “delto.” The arrival of an independent – born from the ashes of a defunct “mom and pop” – was heralded by many.

It was, to say the least, a welcome change to somewhat tiresome offerings that held firm in the microscopic market of a small town. That is until the signage and marketing material made the rounds.

This new arrival was quite obviously going to play price-point as their differentiation.

And so it was for a few months – a battle of budget David against the franchise Goliaths using nickels instead of stones.

Recently, a new independent entered the battle, at first bringing hope to the foodservice industry that perhaps a new offering would invigorate the culinary palettes beyond $9.99.

But, sadly when brazen economics replaced the glorious “Opening Soon” roadside statement, it became evident that this market would be one of “price rollbacks” instead of pizza perfection.

I wonder how many other small markets reflect this mentality across Canada? Is this you? In times of record dairy and wheat prices, are you rolling back your prices to compete?

COMMENTS

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Written by Clive on 2009-02-22 17:21:57

We are one of two takeout/delivery stores in our small town. No chains. I have NEVER flyered, couponed or discounted our menu prices. We serve the best pie possible.We are about to put our prices up again. Jan was up 36% from last year. Month to date only up 27% from last Feb. You will lose all of your "special" only customers, work less and be more profitable with a shift in thinking, price and quality... Clive

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