30/06: Taking the Menu Pricing Effect off the Menu
For the World Cup, everyone here in Germany has really rolled out the red carpet for us fans. The restaurants, chalets and inns have coupled their support for Team Germany with banners for many other nations, trying to welcome all fans. They also raise the prices beyond anything I’ve seen on past travels. But that is to be expected, and the Euro cuts down on all the different currencies I have to travel with over here.
I’ve become good friends with our hosts here, Rutger and his wife Magda, enjoying German’s finest beer late into the evening while we discuss the world’s problems. The conversation moved to the subject of these price increases seen all throughout the town. He mentioned how he had held off changing the prices for years due to how much effort was involved with actually printing and communicating the new prices. He said it had to be a pretty big jump to be worth it, and he was dreading having to go through it again once the games are over.
I immediately had a flashback to the day I had the honor of guest lecturing for Michael Porter at one of his economics classes. The topic of the day was just what Rutger and I were discussing, which is known as 'Menu Pricing'. Menu Pricing is an term to describe how the laws of supply and demand are not always matched perfectly due to the cost associated with frequently changing the prices. Someone in the class highlighted this with the local pub that apparently continued to have dollar draft nights over the years because it was etched in their front windows (but he did say that the cups kept getting smaller!)
Back to Rutger, Magda, my Dunkel Weissen, and their menu pricing struggle. Think of a restaurant that has to reprint menus, update the web site, including everywhere else the menu appears, plus update a list of specials on the display. Technology should be able to take care of menu pricing once and for all for my dear German hosts.
I related how we are working with a client on just that solution. The manager for this restaurant in the States can update the specials, menu items and overall pricing each morning after the chef finalizes the menu. Then with the press of a button, the new menus for the day are printed on nice stock, the website is updated and their media partners receive the data in a nicely formatted email. No more Menu Pricing problems.
I know have a dry cleaning problem though. During the conversation, Germany beat Argentina and Magda jumped up to hug me, and as it turned out my full glass of Dunkel.
I’ve become good friends with our hosts here, Rutger and his wife Magda, enjoying German’s finest beer late into the evening while we discuss the world’s problems. The conversation moved to the subject of these price increases seen all throughout the town. He mentioned how he had held off changing the prices for years due to how much effort was involved with actually printing and communicating the new prices. He said it had to be a pretty big jump to be worth it, and he was dreading having to go through it again once the games are over.
I immediately had a flashback to the day I had the honor of guest lecturing for Michael Porter at one of his economics classes. The topic of the day was just what Rutger and I were discussing, which is known as 'Menu Pricing'. Menu Pricing is an term to describe how the laws of supply and demand are not always matched perfectly due to the cost associated with frequently changing the prices. Someone in the class highlighted this with the local pub that apparently continued to have dollar draft nights over the years because it was etched in their front windows (but he did say that the cups kept getting smaller!)
Back to Rutger, Magda, my Dunkel Weissen, and their menu pricing struggle. Think of a restaurant that has to reprint menus, update the web site, including everywhere else the menu appears, plus update a list of specials on the display. Technology should be able to take care of menu pricing once and for all for my dear German hosts.
I related how we are working with a client on just that solution. The manager for this restaurant in the States can update the specials, menu items and overall pricing each morning after the chef finalizes the menu. Then with the press of a button, the new menus for the day are printed on nice stock, the website is updated and their media partners receive the data in a nicely formatted email. No more Menu Pricing problems.
I know have a dry cleaning problem though. During the conversation, Germany beat Argentina and Magda jumped up to hug me, and as it turned out my full glass of Dunkel.
