Fourth of July sale pricing actually hurt my shop's revenue last year

I run a small BBQ joint off I-40 and everyone says you gotta do big holiday deals. Last July I ran 20% off everything and my margins went to zero. Lines were long but I made less profit than a normal Tuesday. This year I'm trying a different approach: a free side with any sandwich instead. Same feel of a deal but costs me pennies. Has anyone else found cutting prices backfired on them?

2 comments

2 Comments

claireo677d ago

And that's the thing with percentage off deals, people order more but your margins take a hit. I switched from 15% off entire order to a free drink with a purchase over a certain amount. Keeps the average ticket up and the cost to me is maybe 20 cents versus 3-4 bucks off a plate. The free side play is smart, keeps them feeling like they got something without you losing on the main item.

hollym827d ago

The free side play is genius, right? I did the same thing with my shop and it worked a treat.