Question: I need this information for a Mexican Restaurant Pricing Explain your method or methods of setting prices. For most small businesses, having the lowest price
Pricing Explain your method or methods of setting prices. For most small businesses, having the lowest price is not a good policy. It robs you of needed profit margin; customers may not care as much about price as you think; and large competitors can underprice you anyway. Usually you will do better to have average prices and compete on quality and service. Does your pricing strategy fit with what was revealed in your competitive analysis? Compare your prices with those of the competition. Are they higher, lower, the same? Why? How important is price as a competitive factor? Do your intended customers really make their purchase decisions mostly on price? What will be your customer service and credit policies? Proposed Location Probably you do not have a precise location picked out yet. This is the time to think about what you want and need in a location. Many startups run successfully from home for a while. You will describe your physical needs later, in the Operational Plan section. Here, analyze your location criteria as they will affect your customers. Is your location important to your customers? If yes, how? If customers come to your place of business: Is it convemient? Parking? Intenor spaces? Not out of the way? Is it consistent with your image? Is it what customers want and expect? Where is the competstion located? Is it better for you to be near them (like car dealers or fastfond restaurants) or distant (like convenience food stores)
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