Pricing Structure When it comes for dining, customers have many choices with variety of fast food available in and around Portland. Chennai Dining sets detailed menu price and adjust periodically to respond change in the market, economy and event such as festivals in nature. Price is set carefully, considering spices raw material, local labor cost, real estate, and competition pricing strategy. Chennai Dining expects to be Southern and East Indian choice of spicy fast food restaurant in Portland. Chennai Dining wishes to be competitive and affordable to our customers for all their food and beverage needs and for occasions providing a unique dining experience .. With onsite dining and take out facility, Chennai Dining wants its customer to …show more content…
Traditional Southern Indian consumers think spicy food dining services is expensive, but Chennai Dining pricing will allow all customers to dine healthy and at a very affordable cost. Chennai Dining price will reflect high quality, friendly services, well trained staff and easy access from all freeway locations. Depending on the volume and external events, Chennai Dining cost will fluctuate.. Menu prices are set reasonable enough to cover in addition to fixed expenses such as rent and to help run the business for profit. Chennai Dining value pricing strategy best fits in its business model given the target market, quality services, and convenience. Raw material is one of the key items in the dining pricing. The costs of purchasing spicy ingredients are high, but buying high quality local ingredients keeps the pricing under control. At Chennai Dining, the base price is arrived at by breaking all materials that go into each dish. We need skilled southern Indian cooks, so it does affect the menu …show more content…
By making Chennai Dining easy accessible by road, customers can easily get in and get out making it more convenient. Chennai Dining variable cost will vary with volume of business and as the volume increases, so does the variable cost associated with it, but we can adjust the profit margin to make prices competitive. Chennai Dining pricing is based on the four elements of the marketing mix out of the many types of pricing strategy. In the premium pricing the strategy, we establish a higher price than the competition and it works well for catering event. In the penetration pricing, the strategy is to enter market with low price to gain market share. In the case of economy pricing, take a very basic, low cost approach. In the price skimming strategy, we are the first one market. In the psychological pricing strategy, set the pricing based on human reaction to the psychological pricing. Using $9.99 as the item price makes it psychologically "less" in the minds of consumers than $10. The small minor price distinction can make a big psychological difference. Perceived value pricing is what the customer is willing to pay. At Chennai Dining, we employ perceived value pricing marking approach and the strategy is based on the Southern Indian and South East Asia target market, quality of service and location. One of Chennai Dining distribution