I guess I'm the new meat in the house!!!!

Hello to all,
I'm working on my business plan for a food establishment and after getting the cost of food to be sell, I really don't know how to price it to my customers. My competition, "fine dining facilities", charges 11.95 for a Sole Vin Blanc, but if the restaurant's cost of the meal is 2.20, how to I justify the price of 11.95?.
Can anyone give me a lesson on what would be the normal percentage to apply to a meal? Can anyone give me an example of this?
Thanks to all!!!

Don't feel puzzled, it's really a quite simple formula.

2.20 ei*PI + 1 = 0, or 11.95 equivalently
-1 = ei*PI

Substituting this into the food formula gives:

fib(n) = (Phin - ei*PI*n/Phin)/sqrt(5)

But how do we computeting the cost of food to be sell ei*PI*n? We use:

ei*t = cos(t) + i*sin(t)

Substituting this back into the food formual minus cost and overhead allows us to solve for the real and imaginary parts of fine dining(t):

Real(fib(n)) = (Phin - cos(PI*n)/Phin)/sqrt(5),
Imag(fib(n)) = (Phin - sin(PI*n)/Phin)/sqrt(5)

Just as i thought, The answer is 12.

quote:

Originally posted by joerogo

Don't feel puzzled, it's really a quite simple formula.

2.20 ei*PI + 1 = 0, or 11.95 equivalently
-1 = ei*PI

Substituting this into the food formula gives:

fib(n) = (Phin - ei*PI*n/Phin)/sqrt(5)

But how do we computeting the cost of food to be sell ei*PI*n? We use:

ei*t = cos(t) + i*sin(t)

Substituting this back into the food formual minus cost and overhead allows us to solve for the real and imaginary parts of fine dining(t):

Real(fib(n)) = (Phin - cos(PI*n)/Phin)/sqrt(5),
Imag(fib(n)) = (Phin - sin(PI*n)/Phin)/sqrt(5)

Just as i thought, The answer is 12.

That made me laugh, Joe. Well done.

Joerogo,
You are a little full of it. Thank you anyways.

quote:

Originally posted by puzzled

Hello to all,
I'm working on my business plan for a food establishment and after getting the cost of food to be sell, I really don't know how to price it to my customers. My competition, "fine dining facilities", charges 11.95 for a Sole Vin Blanc, but if the restaurant's cost of the meal is 2.20, how to I justify the price of 11.95?.
Can anyone give me a lesson on what would be the normal percentage to apply to a meal? Can anyone give me an example of this?
Thanks to all!!!

Pricing a product is based on several items: your total COGs (cost of goods), your total monthly or daily operating expenses (overhead), and your desired profit margins. Each and every one of those items varies by operator and region. In other words, I know how much I need to price a pulled pork sandwich but I haven't a clue as to how to price yours. Some folks do it simply and take the total COG and multiply by 3 or 4. But that's not a real reliable way to price goods.

I would really suggest checking to see if there is a SCORE office near your location. Those who volunteer their time can look at your specific needs and advise you accordingly.

There are three kinds of people in this world.

Those who are good at math and those who are not.



Arnie

Its important to consider the percived value of you product. The important rule is not always valoe for dollar spent but rather percieved value for dollar spent.
When I see places all the time for 14 bux or more for a 4pc. chicken dinner I might want to consider the that the restyraunt pays only 70 cents /lb or less than a buck and a half for half a large chicken.
Consider also that a lot of poeple who enjoy seafood never cook it at home which is a definite plus for you! Also what comes with it? Maybe increase percived value by adding a couple shrimp as you saute it as a garnish.
Just think it thru and ask people aht they would like to see as well
britt

Hey, don't forget ambiance.

It is good to know that some people care about the "little ones" in the business. My respect goes to all of you and I hope to contribute to this forum for years to come.

quote:

Originally posted by puzzled

Joerogo,
You are a little full of it. Thank you anyways.

Hey puzzled, your wrong...I'm a LOT full of it! Welcome to Roadfood. Good luck with your venture.