How can you determine the pricing of your hotel rooms or your restaurant menu? In this video let us learn 3 methods of doing that.
The first one is the cost-plus method. In this method, you find out how much it costs you to deliver the product, and then add the profit margins required.
In the second method, look at what the competition is charging, and decide where you want to position yourself. If your competitor hotels are charging 4000 rupees, decide if you must charge a premium over them, or be below their pricing.
The third method is value-based. It is slightly complicated to understand but basically, you charge based on what your customer is willing to pay. You see this in practice every day. Last-minute pricing is always higher because, the value for the product changes.
So those are the 3 ways you can determine the pricing in your hotel or restaurant.