The basis of application of self-service kiosk machines or in other words vending machine a known in the US is to greatly minimize customers’ queues. 4fingers is a foods business that prepares fast foods like chicken using Korean Culinary arts style that proves to be scrumptious to the consumer. The main challenge for such a fast growing business would be creating strategies that meet the growing demand and also not affect the pricing of the food products so that the revenue can grow adjacently. It is the responsibility of 4fingers to come up with an effective pricing strategy that will not only increase customer retention but also get various referrals for their good food.
Fast food restaurant use various pricing strategies resembling a tripod structure. The major and popular three pricing strategies used I the market that 4finger can apply are, value pricing, bundle pricing and customary pricing. Create a versatile movement between these three pricing strategy can always help 4fingers optimize their sales and thus increase profits. Value pricing assumes that your clients view price as a primary indicator of your products value. The concept here is that 4fingers can increase its revenue gains by either fixing or decreasing it price in order to increase demand. Obviously 4fingers will be selling French fries and soft drinks alongside its prominent fried chicken.
The best approach in using self-service kiosks to generate sales is to price your products commensurate with other kiosks in the proposed region. This essentially creates a perfect completion market so 4fingers can effectively compete with other fast foods outlets. It will be prudent to ensure that these self-service kiosks are always constantly cleaned and stocked with the required food staff in order to meet the growing demand for 4fingers products. This also creates the perception that your products are selling and therefore attract additional consumers.
The second pricing strategy is customary pricing. This pricing system is achieved by tradition or competitive process in fast food markets. Fast food markets restaurants employ customary pricing on a consistent basis. For example, if a good number of fast-food restaurants are selling cheeseburgers for a dollar, then every other fast food restaurant has to trade its cheeseburger for a dollar, also, or they will risk reducing sales and eventually loose sales to competitors.
The other popular pricing strategy in the tripod pricing strategy is bundle pricing. Bundle pricing is the simply the act of marketing and selling two or more package/products with the sole intention of saving the customer expense as compared to purchasing a single product. Fast-food restaurants engage quite frequently in bundle pricing due to its common success rate in the fast food industry. Thus is what is called a meal deal or a value meal is slang in this particular industry. This is great, since a customer can purchase French fries, fried chicken wings and a soft drink as a value meal for far less than the price of purchasing each item separately.
The purpose of a price fencing structure is to provide suitable price strategy navigation in accordance to your business performance. Variability in prices will always be caused by market leaders and also with fluctuation in input and raw materials costs. 4finger will best of using the value pricing strategy considering their culinary application in their food products is unique to particular market. 4fingers customer base is consistently growing because of its food seems to be better than the competitors so in order to retain current and prospective customers, 4fingers should come up with a value pricing system for it unique chicken cuisine while price the other common food products like soft drinks and French fries at par with their competitors. This will most certainly create revenue growth in their brand and eventually economies of scale.
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