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Tuesday, July 5, 2011

Restaurant chain realizes that many consumers want price certainty

Ever catch yourself bracing for the cost of an automotive repair with this kind of question:  “Okay, what’s the max this could cost me?” 

Apparently, the Darden restaurant group is convinced that consumers feel the same way about dining out:  They want to know what the maximum cost might be.  And they’re adjusting the promotional pricing of their Olive Garden chain accordingly.  That’s according to this article from Nation’s Restaurant News following the company’s most recent shareholder call.  Click here to see the story.

Implications:  Consumers appreciate certainty in an uncertain world.  Rather than promoting prices “as low as” for your place of business, might you be better off explaining that “you won’t pay more than ____________” for a specific product or service package that you sell?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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