I am worried about implementing Dynamic Pricing in my pub?
Obviously this will not work for all pubs as it depends on the ability of individual businesses to provide specials and to implement differential pricing.
Try it out with just one dish on your specials board (the most popular for instance), you have already determined the minimum price you need to make your desired Gross Profit percentage. Take a detailed EPOS reading to compare with your Dynamic Pricing experiment or manually record the number sold over a week.
Then price that dish according to different times of the day/week, perhaps as above or based upon your detailed knowledge of your customers. Do this for at least a week to give you enough sales information, use your EPOS till (or manual records) to manage the pricing and to track the experiment.
If your customers do not resist your pricing policy (i.e. demand drops or complaints about pricing increase) then you have an early indication that Dynamic Pricing is something you might adopt in your pub.
Now calculate the overall gross profit you made on this one dish before and during the experiment and then multiply this out for a year … I’ll wager the result will be impressive.
Now a word of warning!
Remember Honest Abe’s words though …
You must be selective in using Dynamic Pricing and I would strongly advise against using this on all your specials as there always has to be some consistency in your pricing. The number and type of dishes and the pricing differential you adopt will depend on your customers and your understanding of their price consciousness.