Peeling back the onion
In an effort to hold off passing down higher costs, some foodservice operators have opted for shrinkflation. Reducing portion size can help keep costs down while also encouraging patrons to order an appetizer or dessert. One of the biggest challenges manufacturers face is maintaining an effective pricing strategy in this scenario. Get 2 easy tips on developing or refining your pricing strategy.
Peeling back the onion
As one would expect, while inflation rose, the purchasing value of money decreased. This has forced the hand of many manufacturers to take action and become more strategic. Not taking action can result in a negative impact to profit. Remember not to make the mistake of thinking that COGS (cost of goods sold) is not part of an inventory expense. Learn more about cost-adjusted, market-aligned and elasticity pricing strategies.