In the latest digital edition of Bake Magazine I came across this interesting article regarding tiered pricing. The idea is to offer the same basic product (doughnuts is one of the examples in the article) at different price levels to capture more customers – specifically, to get the premium dollars you may otherwise miss from not offering a product at a higher price point than you currently do.
The majority of bakeries we encounter employ this strategy to some degree in their pricing structures. But more than anything, I was struck by the signage from Frost Doughnuts (www.frostology.com) that displayed the pricing levels of their product offerings. The image displayed is clean, simple and inviting. I think this display, as much as the pricing structure itself, can entice customers to put those extra dollars in your register.
I’m curious to know how different bakeries inform their customers of their price tiers. What strategies have worked for your bakery to grab those premium bucks?