English Practic

Pricing approach

Our main approach to pricing would be value-added pricing. Value-added pricing strategy is adding value to increase the quality of services offered. This pricing strategy that attaches value-added features and services to differentiate a market offering and support higher prices, rather than cutting price to match competitors. We want to create a comfortable environment and provide good service and product to our customers, provide them a good service and create a good emotion to take the meal. We attach value-added features and services to differentiate their offers and thus support higher prices.

The reason of using value-added pricing

Using value-added pricing not just only focus on increase annual sales, the main goal is keep the customers loyal by providing the best service and product that our shop can occupies an important position in the minds of the customers.

The next reason that using value-added pricing strategy is can avoid company to enter the price war. If the market has several competitors, it maybe occur price war. However, value-added pricing can make us focus on how to improve the service performance that can capture more customers’ loyal. So some companies do not have to enter into price wars yet still be profitable.

The influence factors of setting pricing

For setting the price of the meal, there are some factors would affect us to set the price. It can separate into external and internal influence on pricing.

For the internal influence on pricing, first to consider is perceived value of the product. Sometimes, if your product is priced too low, the customers tend to feel the materials used in producing the goods is inferior and so therefore, the product is of low quality. So we must make sure take a balance between the price of your product and its perceived value before fixing the price of our product.

For the external influence on pricing, first is the economic trend. Economic factors such as taxation rate,...