menu pricing

1. MENU
PRICING

2. PRICING METHODS
Subjective
Pricing
Objective
Pricing

3. SUBJECTIVE PRICING METHODS
LARGELY BASED ON
ASSUMPTIONS.
BASED ON RESULTS OF
OTHER ESTABLISHMENTS.
BASED ON PERSONAL
EXPERIENCE.
COMMON IN THE FOOD
SERVICE INDUSTRY.
USUALLY DONE BY PEOPLE
WHO HAVE VERY LITTLE
KNOWLEDGE OF PRODUCT
COST OR PROFIT
REQUIREMENTS.
UNFAMILIARITY WITH
OBJECTIVE METHODS.
INEFFECTIVE METHOD OF
HANDLING PRICING.

4. SUBJECTIVE
PRICING
METHODS
The reasonable
price method.
The highest price
method.
The loss leader
price method.
The Intuitive
price method.

5. THE REASONABLE PRICE METHOD
An estimated value/ Price of the dish
set by the manager of the
establishment which he feels is
reasonable.
This price is based on feeling and
sentiment rather than an analysis of
the content.
However, in many cases the price is
right because it has been thought
from the guest's perspective.

6. THE HIGHEST PRICE METHOD
Usually, the manager
appoints a panel of
colleagues.
Confers with the panel and
includes his own opinion.
Sets the highest price as
concluded by all.
A margin of error is also set
in, so all contingencies are
taken into consideration.

7. THE LOSS LEADER METHOD
THE PRICE IS BASED ON A
SALES PRINCIPLE OF
PROMOTION OF (RIS) RAPID
INCREASE OF SALE.
AN UNUSUALLY LOW PRICE IS
SET FOR AN ITEM OR ITEMS.
THE MANAGER ASSUMES
THAT THE LOW PRICE WILL
ATTRACT CUSTOMERS AND
WILL ALSO BUY OTHER ITEMS.
THE METHOD IS ALSO
INTERPRETED AS SCHEMES.

8. THE
INTUITIVE
PRICE
METHOD
The method is based on guesswork
and trail and error rather than a
calculated approach.
The method is based on a pricing
plan and if one does not work the
other plan is tried.
The method grossly differs from
others because it is based on
Hunches and guess work.

9. OBJECTIVE
PRICING
METHODS
Mainly based on 3 cost procedures:
Creating updated
Standard Recipes.
Pre-costing with
current costs.
Using standard recipes
despite changes in staff
and curtail deviation.
Transferring and interpreting budget
plans into selling prices.
They are based on approved operating
budgets.

10. OBJECTIVE PRICING METHODS
Simple Mark-
up(Multiplier)
pricing methods.
Ingredient mark-
up method.
Prime ingredient
mark-up
method.
Mark up with
accompaniment
cost.
Contribution
Margin pricing
method.
Ratio Pricing
method.
Simple prime
cost method.
Specific prime
cost method.