Saw a local coffee shop charge $8 for a simple pour-over and realized my pricing was way off

I was at a spot in my neighborhood yesterday and noticed their basic black coffee was priced at eight dollars, which seemed crazy high to me. It made me check my own menu and I've been charging about half that for a similar product, even though my costs are almost the same. How do you figure out the right price point without scaring people away?

2 comments

2 Comments

tessac253d ago

My uncle ran a diner and always said to double your ingredient cost for the price. I used to follow that rule until a bakery downtown charged five dollars for a cookie and people lined up. It made me see some customers connect a higher price with better quality. You might be leaving money on the table by charging too little, because it makes your product seem cheap. Try a small price bump on your pour-over and see if your regulars even notice.

nancy_garcia633d ago

Notice how people pay more for things in nicer packaging. That fancy coffee shop probably has a cool vibe that makes the price feel okay. Your regulars might actually respect a small increase if it seems like you're investing in the place.