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The Invisible Price Tag on Food
However today’s restaurateurs, country clubs, and even convalescence homes are doing just that.
Our bottom line food costs, and the steps that we take to ensure that number are the difference between a great and profitable restaurant and another “Space for Lease “ sign. Price comparison between broad line food purveyors is a time consuming and often daunting task. Owners and purchasing directors could spend up to four hours dissecting and analyzing prices, and another four hours analyzing those same items according to their units of measure. At that rate, an entire workday is dedicated to the task of simply comparing apples to apples.
The norm has been to simply accept the quoted prices, and to move on to the more important tasks of preparing the restaurant for the weekend rush. In other words, to buy that new Mercedes without ever knowing the price.
In today’s internet market, you can compare prices on plane tickets, hotel rooms, and even cars, and order with a click of a button.
Cutting Edge Technology brings the same internet based price comparison software to the restaurant industry, revolutionizing the purchasing process, allowing owners and purchasing directors to compare pricing on all of their purveyors and vendors on a real time basis. Prices on all goods including food, produce, paper and chemicals, are updated instantaneously, placed side by side according to their like unit of measure, and can be ordered with the click of a button.
According to Dean Friedland, president of Cutting Edge Technology, “We find that our broad line purveyors lower their prices an average of 4% simply knowing that they are being compared. However, on a national average, by actually using our system, our clients are realizing savings of 8-10% on their orders.”
A similar trap is the “contract pricing.” Broad line purveyors will offer their clients discounts if they lock into a contract to purchase a determined percentage of goods. Although, this is tempting, the invisible price tag is the one paid, by not comparing. How can we be certain that these discounted prices are at cost?
Week by week, pricing will be determined by the market and simple economics. No two prices will ever be the same on any given product each week simply because of supply and demand.
Stop paying the invisible price tag. Allow the open market to function as it should. Not only will restaurateurs be confidently meeting their budgeted food costs, but may find themselves a more educated consumer, and on the lot for that new Mercedes.
Cutting Edge Technology is formerly known as Esave.net. With a new name and a new brand, several new features are being launched within the software. The new features include inventory control, menu costing & engineering and a scheduling suite.
Cutting Edge Technology