Harry's, your family-owned business, has been serving breakfast, lunch, and dinner in your city for so long that it's practically an institution! Your lunch menu items range in price from $8.99 to $13.99. Recently, your head chef suggested adding a delicious new seafood option to the lunch menu, but the costly ingredients involved will force you to charge $17.99 for it, which is comparable to what you charge for dinner menu items. You're concerned that this will upset your long-time customers. What should you do?
A) Set the price at $13.99, but cut costs on all other menu items to make up for any revenue shortfalls
B) Set the price at $17.99, but raise the prices of all other menu items by $2 or more so it doesn't stand out
C) Set the price at $17.99, and trust that your customers will see the value of the new menu item
D) Set the price at $14.99 for the first month, then gradually raise it to $17.99 over the next three months

Question

Quizplus · Accepted Answer

Setting the price at $17.99 and trusting that customers will see the value in the new menu item respects the cost of ingredients and maintains the integrity of your pricing strategy without artificially inflating the prices of other menu items or compromising on quality.

Harry's, Your Family-Owned Business, Has Been Serving Breakfast, Lunch, and Dinner