Do you ever look at a product and wonder how the price was set? Do you look at a price of something and laugh ridiculously wondering where the manufacturer got the price from? Well, before you go ahead and criticize them, perhaps it is good you understand more about the pricing thing.
Every time I go out shopping, I compare a lot. I guess that explains why my hubby doesn’t come with me when am doing my shopping. I like to look at the different prices set on a particular product before I buy. That is because I am cautious when it comes to what I spend during my shopping.
If you are like me, you always notice the same products having different prices, right? Do you wonder why it is so? I do it all the time in fact, there are some stores I don’t shop because of their prices. If you eat out a lot too, am sure you have in mind the different prices of food in every joint.
Different restaurants have different competitive prices when it comes to their food and drinks. They set them according to many factors they look at and you buy depending on many factors you consider, read along, and understand the whole concept of pricing food and drinks
Sonic drive in prices
It is your favourite joint to eat and drink, right? Yes, with all the food that they have to offer, it is understandable why they are people’s favourite. With over 3 million people driving into their premises to have a taste of their fast food, they must make sure they have the best price in the market.
It all started in Shawnee, Oklahoma in the year 1953 by a world war II veteran Troy Smith. He started the fast food joint as a way of earning his living after the war ended, people used to drive on the premises to have their favourite snacks.
Sales increased and revenue grew to hat it is right no. They have over 3500 branches in 45 states in the US. They have unique features that make you want to drive in for their food. Their items on the menu are delicious and the wide variety of drinks. They are all refreshing and affordable.
What makes them unique from others in the industry are their prices. The food and drinks in their branches are affordable for everyone to have. They also have specials and offers for you to have food and drinks at half the ordinary price. That makes them the best and a place to be when hungry
7 Factors Affecting Sonic Drive in prices
For Sonic to set a price that you can afford, the must evaluate some factors. They don’t want to come, please you and then be out of business the next day. It is something that cooperates to sit down and decide. To decide the price of their food and drinks, the look at the following factors;
- Cost of production
What is the cost of making the food and the drinks? That is the question they must ask themselves before setting the price of an item on the menu. They must pay for the suppliers of the ingredients, pay for power, and other expenses they incur during the making of the items in the menu.
When the cost of making the items is high, the price of the item in the menu can be high and if there is cost incurred in production of a certain item, its price will be down. That is why you will find an item in the menu as low as $1 and as high as$7.
They must decide on the profit they want to make. They have sales goals that they must meet if they must remain in business. That is why they set the profit they want to have by the end of the sales. They distribute the anticipated profit in all the items on the menu.
That is why they are successful. With over a billion in revenue every year, it is clear they are able to meet their sales goals. That is why they are expanding their service to many towns for more production. They also use the money to hire new employees and grow the empire.
The hospitality industry is very competitive. More and more fast food is emerging every day. With the old classic look, they must keep up with the competition by setting competitive prices for their customers. That is hay you will see them with many offers and specials
For Sonic drive into increase sales, they set their prices at half price on certain days and hours. That is to increase the number of customers walking into their premises. With the offers and specials, it is a sure way that they will keep the customers driving into their premises and not into their competitors
- Market demand
How many people want that they are serving? It is another question that they think about when they are setting their prices. They must think of how unique their foods and drinks are. What do they have in common with others and what makes them unique from the others?
They share some of the items in the menu with other competitors, that makes them try their best to be like them or lesser than them. When it comes to the slushes, they are unique, they set a price flexible with them since they uniquely make the slushes.
- Market standard
In every industry, there are certain rules and regulations governing the pricing of certain commodities. That is to avoid manufacturers from exploiting consumers by setting up high prices. That is why you will find similar products having prices of the same range.
The set market standard also affects the pricing of Sonic items on the menu. They must adhere to the set of rules and regulations. That is why you will see them having items with prices similar to their opponents in their market. It is in the aim of protecting you as a consumer.
- Marketing strategy
That is how they are going to reach to their potential consumers. Knowing how to reach the customer will tell them how they are going to use the prices to reach to their customers. Many food joints use prices as a way to market themselves and make the customer walk into their premises.
Through the use of coupons, special hours and offers, customers come into their premises to eat. They are all price discounts that make you go for more. They sell the item in the menu at half the normal price during the promotion hence affecting the price of the items.
- The target
They need to set the price of their food and drinks with their intended customer in mind. Who is going to consume the item? That is why you will find kids food at a lesser price than of adults. You will also find themed slushes at an affordable price than others
Having the target in mind creates a sense of value to the consumer. You will feel appreciated if you know that they had you in mind when setting the price of your favourite slush. That is what they want you to know. They have you in mind when setting the price.
Reasons Why Sonic food Prices are Affordable
You may wonder, right? Why is it that when you walk into any of their premises, you will find food and drinks at half of its ordinary price or at a price lesser than the others? Here is why;
- To increase sales
How else ill they reach their sales goals? They must keep you coming into their premises. Setting affordable prices is a sure way of making sure their customers are flowing into their premises for their foods and drinks. That is because people love affordable delicious food.
With the tough economy that we are in, eating out can be expensive. While it is inevitable, you must look for a place where you can dine and drink without feeling the pinch in your pocket. That is why you will find yourself in Sonic drive in due to their affordable prices.
- To keep the food and drinks going
One-way of avoiding food from spoiling and leftovers is by setting a price that everyone can afford. Food will always be out of the shelves due to the demand they have. When an entrepreneur is dealing with perishable food, they must come up with an affordable price.
For Sonic to keep on selling freshly made food each time, they must make sure the food is moving to create space for new once. That way, there will be no wastage in any way. Sales will go up and they will make a profit at the end of the day.
- To remain in business.
There is stiff competition in the industry. There is so many businesses arising all over. To remain in business they must give competitive prices to their customers. They must go for their share of the customers by offering foods and drinks at a price lower than the others.
In situations where they cannot offer lower prices, they make sure they have servings of different sizes. That way, they can price them differently for anyone to afford. You will find a large, medium, and a small serving of most food and drinks.
- To market their brand
Am sure know about the Sonic drive in through their prices right? It is one of the marketing tools that have been very effective in their part. They have offers, coupons, and special hours here they offer half prices on certain items to attract you into their branch.
People love coupons and offers. They will always drive around to look for a way they can dine and save at the same time. That is how they find themselves at Sonic drive in every Tuesday, during the morning and happy hours in their afternoon. Tight offers, which make the people coming
- Show appreciation to the customers
They do so to appreciate their customers for choosing to dine with them. You also feel welcome and of value when you see them selling you food and drinks at an affordable price. That builds trust into their customer since they will always know Sonic drive in mind about their pocket when setting the prices.
How to make the best of Sonic drive in prices
How do you make sure you take advantage of the Sonic drive in prices. It is the knowledge you must have if you want to save some cash and still enjoy their foods and drinks. The prices are there for you to see and evaluate what you want and what you can afford.
The first thing you should do is look at the menu. If you take advantage of their app, you can look at the menu items and the prices against each. Through doing that, you can make a combo that will save you more money as you, eat at their premises.
Take advantage of their coupons, offers, and specials. It is so far the best way you can save a lot when you dine with them. They have offers of dining at has a price on food and drinks. Take note of the time and days so that you can schedule the time to drive into their branches.
You also need to compare the prices before you dine with them. Scroll around to see if they have the best price of what you want to have before you order. Just like I walk around hen shopping, look online for a menu of different fast food drinks before you settle to drive in their joint.
When buying goods or services, the price set against it is vital. There are so many factors to consider when setting the price. Sonic drive in prices has been playing a great role in marketing their food and drinks. They are the reasons why you keep on going for more each time you are hungry.