Thinking about the “business” aspects of what we’re doing, getting the venue for the price of a meal sounds great, but it adds another consideration to the total cost. And as is usually the case, it’s all about presentation; how will it be perceived by the customer?
For example, does anybody actually believe it when a company offers you something “free of charge”? If they were actually losing money, they wouldn’t stay in business very long.
The fact is, the cost of the so-called freebies is hidden in the pricing. It might be written into the advertising budget, or it could simply be covered by a higher price per unit item, but somebody is paying for it, probably the customer himself, but that fact has been cleverly disguised.
Or sometimes, not so cleverly…
I guess they’ve stopped doing it now, but for a while AOL was sending out “free trial” CDs to almost everyone who owned a mailbox. While “direct marketing” is a valuable tool, and I’m sure AOL got plenty of new customers with that, the way it was done sent a wrong message to many people (like me) about spending priorities.
You see, the BOX that the CD came in was a VERY nice, pressed wood case that will very likely last longer than the CD it contained. It served no other purpose; nothing would fit in there BUT a CD. And it was these boxes, NOT the relatively inexpensive plastic disks that attracted my attention.
My thoughts were always, “If they’re spending THIS MUCH on disposable boxes, in what other ways are they wasting money that could be used to provide better service or lower prices?”
My PERCEPTION of what was essentially the “cost of doing business” was that it could have been handled more effectively.
Now back to the situation at hand: do I include the meal in the price of the admission? With a regular restaurant, this would not be so attractive, as every menu item carries a different price. But at a buffet, every meal costs exactly the same, and it would be very simple to increase the ticket price to cover that.
So, the decision comes down to the customer’s perception: what is the better value? If I included the cost of meal AND drink, it would not be as good value to someone who was only drinking water. On the other hand, if I specified that the ticket covered only the entertainment, and the meal was paid separately to the establishment, it could cause confusion. Also, inevitably some would choose NOT to purchase a meal, which is not in the best interest of the restaurant.
I seem to have answered my own questions, at least for the time being. The entertainment includes the price of a meal and drink. (If someone specifically asks about a “water discount”, perhaps that can be negotiated on a per case basis, but not mentioned otherwise.)
Also included in the decision is the question of whether the meal is worth the price. In this case, I think it is. Buffet King is a well run and very clean establishment with good food in plenteous quantities: a very good value for my customers.
Now for pricing: what is dinner and a show worth in this particular market?