New restaurant on street #19, got a 30% discount card so giving it a go. Review to follow.

Thanks for telling us you have a 30% discount to place you have never been to!

Are you from Detroit?

StroppyChops wrote:

Mekong Mickey wrote:Are you from Detroit?

Something wrong with the filters - are the admins letting just anybody in here?

Heaven help us!

I also have a 30% discount card! ! ! ! .....that I haven't used just yet... Soon though..

WOW! Just Wow! I wish I had 30% off a place I have never been to and probably will never go to!

StroppyChops wrote:All this tells me (like any other sale or discount) is that the place is ripping people off at least 30% over and above...

it's called a loss leader.

generally cost of goods + 100% should be around where your selling price lives. this generally allows for overhead expenses/etc with some profit. obviously on big ticket items that require lower overhead this is something you won't get by with.

when you do a sale like this you're at cost of goods + 70%... generally still enough that you won't go bankrupt and worth it to get those people in the door and talking about your product. it's marketing, and generally written into a marketing expense column as a cost of doing business. it doesn't mean that your regular price is too high.

OrangeDragon wrote:

StroppyChops wrote:All this tells me (like any other sale or discount) is that the place is ripping people off at least 30% over and above...

it's called a loss leader.

generally cost of goods + 100% should be around where your selling price lives. this generally allows for overhead expenses/etc with some profit. obviously on big ticket items that require lower overhead this is something you won't get by with.

when you do a sale like this you're at cost of goods + 70%... generally still enough that you won't go bankrupt and worth it to get those people in the door and talking about your product. it's marketing, and generally written into a marketing expense column as a cost of doing business. it doesn't mean that your regular price is too high.

Wouldn't a 30% discount on the meal be "cost of goods" + 40%? Just asking