bake - April 2014 - 31
I think we draw more (promotional/merchandising) from
outside of the city than we do from within our competition."
Dan Einstein, co-owner of Sweet 16th Bakery in Nashville, TN
It's also important to remember that someone else's
competition's pricing will give you a relative idea of
pricing doesn't play too much of a role in the way that
what the boundaries might be, Einstein adds.
you price your products. You know better than anyone
else the value of what you make and what it takes to
Build relationships
make it. "I try to stay in the upper-middle pricing,"
While competition promotes sales and health for all
Bishop says. "We want to be reasonable and still charge
businesses involved, do not go overboard with the
enough to keep our quality and service the best."
competitive spirit. The industry thrives on the sharing
of information and bakeries helping one another.
Neighborhoods differ within metro areas. Knowing
Building a community within your competition guar-
your neighborhood affects your price points and
antees all parties will reap the benefits.
needs consideration when pricing your products.
"Certain neighborhoods can sustain a higher price
It's a 50/50 proposition between being competitive
point, certain ones can't," Einstein says. "We don't
and helpful with the bakeries in your area. Einstein
necessarily make our decisions based on what
and Sweet 16th give referrals when a customer calls
anybody else is doing. We base it on what we feel is
and wants something that they don't do. "And thank-
palatable for our customers." But knowing your local
fully in return, we get referrals as well," he adds.
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bakemag.com | APR 2014 > 31
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bake - April 2014
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