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729: Pricing/Margin – Is your customer comparing apples to apples (pack sizes)?

 

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  1. DSR Live: 729

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DSR Dave suggests if pricing is an issue with your customer, you need to sit down with them and go over the items in question.  Pack size difference can make a difference in a price war. Make sure your customer is comparing the exact same product and the exact same pack size.

Pack sizes on the same kind of product are one of those little things that you really have to pay attention to because case pack can be the reason you win or lose in a price opportunity/war.  For example, 4/1 hamburger patties sold by one rep in a 9 pound case versus 4/1 patties sold in a 12 pound case will have a price difference due to the case size.

Also, while wanting to achieve the margin you need to make, don’t put your customer out of business by making more money (just because you can) on items than their target pricing can handle. It is always a balancing act.

Maybe the menu price is not the right price. It takes some work, but it is worth it to get your calculator out and the kitchen scales to start checking yields and portion sizes.  Work backwards costing out all of the items on the plate including garnishes, oils used to fry, etc.  Make sure it is the “real” cost and therefore the real margin.  Help them do this on every item on the menu. They won’t want to be in business without you because not many DSRs will go to those lengths to help them.
 

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