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Pricing lessons from a crocodile

May 14, 2014 5:44 am / Leave a Comment / Ingo

crocodile_restaurantAfter spending a great week on a houseboat travelling the channels in Burgundy/France  I stopped over in Metz – a nice city in Lorraine I had the pleasure to live in some years ago. After one week living on a boat and eating ready-to-eat meals my family wanted some real good food for dinner – preferable steaks!

We were attracted by a restaurant called “crocodile”, which was named after the  famous swiss locomotive. The railway theme was also stressed by using two old wagons as dining room.

But what are the pricing lessons I learned from this restaurant?

Price segmentation – When entering the restaurant I noticed two different menus with different prices – one for the working days and one slightly more expensive for the weekend (beginning on friday evening).

When I asked the waitress she explained: “During the week our main customers are shoppers and employees of the stores around – here we have to compete with fast food restaurants and the little bars offering a low priced menu. On the weekend we are mainly visited by young couples and families, who we offer some great food in a nice atmosphere.”

Solution Pricing  – When I looked at the “weekend-menu” I realised not only the big steak but all main course had three different prices…

Sorry not every main course – but the “offers” build around the main courses. Called “Express -€ 18,95 ” , “Confiance  €24,50” and “Gourmand € 26,95” . While Express was a bundle of main course and free beverages (including a selection of wines and beer) Confiance gave you the choice of additionally serving yourself at the starter- or the dessertbuffet. Gourmand then was the full package offering free beverages, starter buffet, main course and dessert buffet.

When looking around most of the guests were ordering the the Gourmand option. Especially the families – I guess it is quite difficult to explain to your kids they should eat a salad, but no dessert.

Additionally when you were entering the restaurant you already saw the big good looking buffets and you really had the desire to serve yourself.

Reference Price

For those guests, who like comparing prices, the crocodile restaurants included one full bundle without a main course (just starter buffet and deserts and beverages) Priced relativly high the main course in the Gourmand package suddenly looks to have a very attractive price.

Up- /cross-selling

For those guests who wanted something special – not included in the packages – ,you could always order some additional drinks e.g. cocktails or a coffee for a fair price.

Conclusion

It really made a lot of fun to eat in this restaurant, not only because of the excellent food and the nice location – especially the kids enjoyed drinking as much coke as they wanted and having not only “one” dessert. If I compare it to other restaurants nearby  the price I paid in total was the same – the value I received was much higher.

As a pricing manager I always keep my eyes open for creative and innovative pricing models and really had the desire to share this one with you

 

http://www.restaurantscrocodile.fr

 

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