Promotion

Pricing

Our product prices are set by Secret Recipe and we adhere to the price strategies set by SecretRecipe. Secret Recipe uses a price lining strategy on certain categories of products. This is tosimplify the choices of the customers by introducing same pricing for foods of the same type.Secret Recipe’s markup of 250% to arrive at menu price is at the industry average level range.This is to cover up the overheads generated to operate the business. Retail prices will becompetitive at about $15 for the average meal which is about 30% above our competitor’s prices.However customers are simply willing to pay more for healthier, tasty food served in a clean,comfortable and pleasant environment.Our pricing objective is to be as reasonable as possible for the average household income whodemands a good dining experience, therefore the cap limit for which the average target marketwould be willing to pay for a meal is slightly above the normal pricing. This applies to the alacarte meals only.We have another set if pricing policies for our cakes which is different from the ala carte meals.Tapping into the idea and trend of people craving for Secret Recipe’s cakes, we are able tointroduce our cakes at a standard RM6.30 per slice of cake and a standard RM70.00 per cake.Customers are just willing to go for our quality cakes because of our brand in cake makingindustry which had won us lots of awards. Nevertheless, for cakes that requires custom designs, shapes, decorations, a premium will becharged because of the usage of more than 1 recipes and the additional work on the cake.Customized cakes with 1 recipe will have a markup of 250% of its cost, 2 recipes will have amarkup of 600% on cost and 3 recipes will have a markup of 800% on cost. The premiums are paid for the amount of recipes used in the cake making process.

ABDM 5234 Entrepreneurship Skills15

We will exercise product bundling by introducing set meals to customers who come to dineduring peak hours, which is...