"Promotional pricing, however, can have adverse effects. Used too frequently and copied by competitors, price promotions can create “deal-prone” customers who wait until brands go on sale before buying them. Or, constantly reduced prices can erode a brand’s value in the eyes of customers. Marketers sometimes become addicted to promotional pricing, especially in difficult economic times. They use price promotions as a quick fix instead of sweating through the difficult process of developing effective longer-term strategies for building their brands. But companies must be careful to balance short-term sales incentives against long-term brand building." (Armstrong and Kotler, Marketing: An Introduction pg 43) We will not, however, implement this special pricing after the first month we are in operation as our products are quality ingredients. It is not the goal of Toss It Up! Salads to undercut our competitors but to be able to offer the highest quality lunches at reasonable prices.
"Competition-based pricing involves setting prices based on competitors’ strategies, costs, prices, and market offerings. Consumers will base their judgments of a product’s value on the prices that competitors charge for similar products.
In assessing competitors’ pricing strategies, the company should ask several questions. First, how does the company’s market offering compare with competitors’ offerings in terms of customer value? If consumers perceive that the company’s product or service provides greater value, the company can charge a higher price. If consumers perceive less value relative to competing products, the company must either charge a lower price or change customer perceptions to justify a higher price." (Armstrong and Kotler, Marketing:An Introduction pg.16)
"Throughout most of history, prices were set by negotiation between buyers and sellers. Fixed price policies—setting one price for all buyers—is a relatively modern idea that arose with the development of large-scale retailing at the end of the nineteenth century. Today, most prices are set this way. However, some companies are now reversing the fixed pricing trend. They are using dynamic pricing—adjusting prices continually to meet the characteristics and needs of individual customers and situations."(Armstrong and Kotler: Marketing: An Introduction pg 45) Toss It Up! Salads has also taken into consideration the economic environment of Las Vegas. We are firm in our belief that the quality of menu items offers more value than what the items are priced at. We are sure patrons will feel comfortable in making purchases at our truck.
"Throughout most of history, prices were set by negotiation between buyers and sellers. Fixed price policies—setting one price for all buyers—is a relatively modern idea that arose with the development of large-scale retailing at the end of the nineteenth century. Today, most prices are set this way. However, some companies are now reversing the fixed pricing trend. They are using dynamic pricing—adjusting prices continually to meet the characteristics and needs of individual customers and situations."(Armstrong and Kotler: Marketing: An Introduction pg 45) Toss It Up! Salads has also taken into consideration the economic environment of Las Vegas. We are firm in our belief that the quality of menu items offers more value than what the items are priced at. We are sure patrons will feel comfortable in making purchases at our truck.
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