Pricing ideas

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Posts: 32
Joined: Fri Jun 06, 2014 2:48 pm

Fri Jan 11, 2019 7:02 am

Last year I updated my prices and I think it was a big mistake. We increased our price and our traffic plummeted. Lesson learned!

I have two fixed locations outside the doors of popular grocery stores and I am going to take my prices back to the original level. Has anyone else played with pricing to find their customers are pretty price sensitive? Anyone willing to share their pricing strategy?

My goal is to have 20% COGS, so my pricing is based off that baseline. This year I am planning:

8oz - 1.75
12oz - 2.39
16oz - 2.75
*20oz - 3.39

(*not sure if I want to bother having a fourth size)

My customers often take their shave ice "on the go" as they buy on their way out of the grocery store - So I am also considering a kids 'flat top' version or some time of 'flat top' option, but I don't know how to go about that just yet.
Posts: 96
Joined: Sun Dec 23, 2012 2:22 pm

Sun Jan 13, 2019 10:33 am

Where do you sell and what kind of competition do you have? For what it's worth I think you are selling at much too low of a price. I am in Florida and at the beginning of last year we were selling 3 sizes in flower cups for $3, $4 and $5. We charged the same prices at schools and places like Sam's Club where we sell on weekends. Mid way through the season we raised our prices at Sam's Club to $4, $6 and $8 and saw no reduction in sales. Close to the end of the year we raised our prices at schools to the same price but offered students a $1 discount. Mediums now selling at $5 picked up to almost 40 percent of sales.
Posts: 32
Joined: Fri Jun 06, 2014 2:48 pm

Mon Jan 14, 2019 9:49 am

I am a fixed location in front of a local grocery store. Lower income part of town that may (or may not) be price sensitive.

We also tried the flower cups - but our customers loved the look, but overall didnt' like them. Our customers are buying on their way home from grocery shopping and the flower cups were beautiful and looked huge; but they didn't fit in the cup holders for their drive home.

We are in the same location every week. We see 40,000 shoppers per week - but its the same people coming by every time. It isn't like an event where we are a novelty - we are a fixed location that competes with snacks inside the grocery store and Bahama bucks a few miles down the raod. We have good regulars and the traffic at the grocery stores hasn't changed - but we made two changes:

1. Increased prices (to what you are charging)
2. Changed to flower cups (with styrofoam cups available on request)

And our sales dropped by a LARGE margin. No new competition, no other changes. This year I am going to 'reverse' the changes and see if they are the problem or if it is something else?

When we do events or are at a special location we usually do $3/$4/$5 with no issue. Our event sales haven't decreased - just sales at the fixed location.
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