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The Rounding Strategy
Rounding Calculator

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You Take Dollars to the Bank...

© Bill Main & Associates

Take a quick look at your menu. Do you have items with prices like $14.25, or $3.85? Did you use a pricing strategy to determine if $14.25 is the optimum price to charge?

If you're like most foodservice operators, you probably used some form of formula pricing or mark-up on cost. If that's the case, we've got good news--you're leaving money on the table.

It's good news, because we've got a trade secret that makes it easy to pick up that money and send it straight to the bottom line.

Take advantage of this hidden opportunity to make significant flow-through profit by understanding that pricing a menu has a lot to do with psychology.

Did you know that for menu items priced above $5.00, guests distinguish price increments of 50¢ or 95¢. With menu items priced below $5.00, the significance of a dime or a quarter is greater, and guests are a bit more price sensitive. Items with pricing increments of 25¢, 50¢, 75¢, and 95¢ work best.

How does Rounding work? Instead of charging $14.25 for your prime rib, you can charge $14.50, and you won't lose sales. For each order of prime rib you sell, you'll instantly make an additional 25¢ in flow-through profit. When multiplied over the course of a year, that's a lot of extra change!

How can Rounding affect your own bottom line profit? We've set up a special calculator so you can see.