Local Restaurant Charging Extra for Outdoor Seating
5 years ago
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Restaurant Sale Prices?
Comments (4)I have the loveliest customer. Sells three slices of beefsteak tomato and two slices of Vidalia onion for seven dollars and fifty cents. Care to calculate how much that tomato cost at the per slice rate? And this is in the economically depressed part of the state. Now, organic produce and eggs generally costs four to five times as much as non-organic produce and eggs in the marketplace. Do some comparison pricing in your town to see what the market is. Since you know the usual wholesale price is half of retail, then you now know pretty well what the stores and restaurants are paying. Now to figure what you're going to charge. Try this: First, (emphasis, emphasis, emphasis), calculate your costs. Include insurance, depreciation of equipment, mortgage payments--all of it. Exclude any unpaid labor (yours). Now, determine your estimated yield. That will be hard. If you have to use something besides your own figures from last year's crops, be conservative in your expectations. Now subtract ten percent for losses, ten percent for waste, and ten percent for errors. Calculate your cost per pound or per dozen or whatever unit for the crop. That's a baseline figure. Add half a cent. Now, condition yourself to think, "One penny less and I am losing money." Now multiply by three. That covers your pay, your profit, and your cushion for next year. That would be your ballpark retail selling price, the price you would like to charge at a farmers' market. (If it's below the common price, good for you. Raise your prices and enjoy the extra profit. If it's above, that's about par for the course. Adjust as necessary.) Half of that would be your ballpark wholesale selling price (which still gives you a little bit above cost). Now, the question is, how does that compare to the estimated wholesale price for your market? If it's higher, then you need to either convince the customer why they should pay you more, i.e., better taste, fresher, delivery twice a week, or you need to sacrifice a little. If it's lower, either sell at the wholesale price and remind the customer of what a good deal she's getting, or convince the customer he's getting such wonderful stuff he should be glad to pay more more and increase your profit. If you're feeling depressed after looking at your calculations, remember, the more special your product is, the closer to retail you can charge. You, after all, are offering personal service, local produce, the opportunity for the chef to inspect your gardens, all these things will let you charge more. I would still give the restaurant or store a discount of at least twenty percent from my retail price, though, unless I was the standard by which others were judged. I realize that wasn't a very good answer, but it's as good as I can do Ray...See MoreS/O: why aren't extras/upgrades/enhancements worth extra to buyers?
Comments (28)This is a new era of buying and selling after the real estate "bubble". Two years ago we sold a condo in Florida and a custom mountain lake home in Tennessee. Both buyers were obtaining mortgages, one being a jumbo mortgage. The Florida condo was appraised slightly below selling price. It was completely remodeled by us (new kitchen and two baths, etc.). The inspector told the young lady she would never find a condo in better condition. All new appliances, new water heater, new air conditioner. We owned it for two years, but decided even as snow birds we would rather have a house. But her Daddy told her not to pay over appraisal. The comps were condos in the same development that had never been upgraded or maintained. Many had been rented out. We sold it to someone else for our asking price. They didn't obtain a mortgage. The home in Tennessee was not on the market. A realtor showing another home in the neighborhood asked if they could see our house. They came back with an offer the next day, which was not the greatest offer We decided to accept the offer and move to the Florida house we had purchased two months before. It gets confusing, I know. :) The inspector was ruthless, but came back with nothing wrong in our new custom built home. The pest inspector came back with nothing (yup the bank required it). The appraiser on the other hand was a bit rude. When I said I wasn't too concerned about the appraisal price since the sell price was below tax appraisal value, he said, Oh, we often appraise homes below the tax app. value now. He told us our home was beautiful, but every home in the neighborhood probably had the same upgrades. No they did not. In the end they said there were really no comps, which wasn't true. But the most chilling experience I had was that the two appraisers used exactly the same words in two different states. It is beautiful, but this doesn't count. This is overkill, it doesn't count. Only the comps matter. Only square footage matters. I have bought and sold quite a few homes in my life. In a brand new builder developed area you get the basic house for the price of the model. Upgrades are paid for as an extra expense. Years ago we had no inspectors and no formal appraisals. It seems the banks do not want to pay for the upgrades, and are driving the prices. Now it has eroded into buyers with cash that look at comps and again do not want to pay for the upgrades. Even 11 years ago I sold a home in Ft. Lauderdale by myself (height of the market) and the buyer had an inspector, obtained a mortgage, but no appraiser came to my house. I sold my "model" for a higher price than anyone had ever sold for. Does anyone think that perhaps the banks are running the market??? Money makes the world go 'round....See MoreFunny story/what would you do-- crowded restaurant
Comments (55)DH and I are in our mid-50s and have shared tables both at home and while we're travelling. In crowded cafes either we've asked if we could have the spare seats at someone already seated's table, or we've invited people who are obviously looking for a seat to make use of our spare seats. We've even changed our seats around to make room for others. We don't necessarily start up a conversation with the other people beyond a few remarks, but it wouldn't occur to us to refuse to share if the place was crowded. On a similar note, we were in a tiny indie cinema with three long (about 10 or 12 seats) row of seats across the space. Being so small, and the movie quite popular, it was pretty well full, in fact there were only two seats left, one at either end of the row DH and I were sitting in (I was next to one of the empty seats). In walked a couple, obviously nonplussed at the potential seating disaster. So I called to the rest of the people in the row, "Could everyone please move down one seat so these people can sit down?" Everyone seemed ready to do just that until the lady sitting at the opposite end announced she couldn't move down one because the seat next to her was (for some reason) higher than the others (by about 4") and if she sat in it her feet wouldn't touch the floor. So I said "Well then, everybody move up one, I'll sit in the wretched seat and DH can sit next to me and that will leave two seats at this end for these people." So we all moved, I got the high seat which, even though I have short legs, wasn't really that bad- I certainly didn't notice it. But the lady who didn't want to move would not shut up about it! All through the movie, she kept muttering to her friend things along the lines of "Well, I couldn't move, my feet just wouldn't have touched the floor!" etc. I felt like saying, for Pete's sake, give it a rest already! Problem solved! Everyone happy! (well, except her, I guess)....See MoreSome restaurants around here....northeast Michigan
Comments (12)Restaurants raise their prices for a variety of reasons. When SF passed a law a few years ago requiring employees be given at least a minimum level of healthcare coverage, some restaurants added a surcharge of a few percentage points to their prices and noted same on their menus. Some patrons may have groused about it but I doubt many did because most people thought the coverage was a good idea. Other than the odd taco stand or small place, a restaurant in this area that decided to discontinue or charge extra for accepting credit cards would certainly lose business. There's too much competition among restaurants here, no need to put up with inconvenience that can be avoided elsewhere (unless there's something special about the place). I know a few that are cash only but all have the 3rd party ATMs inside and, I've noticed, an older clientele. Judging by my own kids and others I know, Millennials seem to want to avoid carrying or using cash and never write checks. Maybe that makes me young at heart, I'm the same about checks and I never use cash unless my purchase is just a few dollars - like less than $10. Edit to add - there are some gas stations that have different cash and credit prices. The ones that do seem to be less busy than others but I have no real data for that impression....See More- 5 years ago
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