Do Pizza Coupons Really Sell Pizzas ?

I get pizza coupons in the mail, on my porch, in the newspaper. They are included in little books from the PTA, the Boy Scouts, and several groups that I doubt really exist. Being a good citizen, I do not discard them. I recycle them. Be that as it may, I do get a craving for one of those home delivered pizzas several times a year.

Guess what ? - - - - No coupon in the house !

I have been known to cadge a coupon from the neighbors, but usually I just grab a pair of burritos to go from the local taqueria. I recognize that the list price is grossly inflated to allow a reasonable return on the average sales price, because no ever orders a pizza to go without the coupon, and I won't pay the inflated list price.

My take on this scenario is as follows:

1. Set a fair market price.
2. Decide on a nominal discount structure.
3. Inflate the list price to allow the discount to result in the desired price.
4. Publish coupons advertising delivery at the fair market price set in step one.

25 Feb 97

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Copyright © 1997 - Jack A. Rains, San Jose, CA 1997