Best Practices

Mastering Pricing Strategies for Your Eatertainment Venue

In the dynamic competitive socializing and eatertainment industries, pricing is an art form – it's not just about balancing the books, but about crafting unforgettable value, boosting your profits to new heights, and creating exceptional experiences that make your guests want to come back. In this article we’ll unlock the secrets to pricing to help you drive your business forward! 

Understanding Your Costs
The first step in this journey is a thorough analysis of your operational costs. Covering everything from equipment maintenance and staffing to utilities and marketing expenses, this foundational understanding is crucial. By assessing these costs, whether they accrue per hour or per game, you can set prices that are not only profitable but fiercely competitive. This comprehensive strategy is your gateway to establishing a profit margin that not only covers your costs but also secures a reasonable return on investment, setting the stage for business success and customer satisfaction.

Setting a Healthy Profit Margin
In the 'eatertainment' industry, a profit margin of 15-20% is generally ideal. This range balances financial health with competitive pricing. However, margins should align with your activity offerings' nature. High-tech or sophisticated attractions, incurring higher costs, might warrant the upper end of this margin, reflecting their unique value. On the other hand, simpler, low-cost activities could lean towards a lower margin, maintaining market competitiveness.

The key is to balance operational costs with customer perception of value. Unique or highly engaging experiences can command higher prices and justify greater margins. Remember, activities promoting repeat visits may operate effectively at lower margins due to cumulative profits over time. Your profit margin should be a strategic choice reflecting costs, customer value, and market trends.

Selecting a Pricing Method
Choosing the right pricing method is crucial for aligning with your business model and customer expectations. Here are some commonly used pricing methods:

1. Per Person, Per Hour
Ideal for activities where time spent equates to value, like arcade games or mini-golf. This method is transparent and allows customers to pay based on usage, making it fair and straightforward.

2. Flat Rate
A flat rate for a set period or access to specific games or areas simplifies the decision-making process for customers. It's particularly effective for family or group visits where they can enjoy unlimited access to certain attractions within that period.

3. Resource-Based, Per Hour
Suitable for equipment or space rentals like party rooms, VR setups, or driving ranges. This method gives flexibility for different group sizes and ensures you're compensated for the exclusive use of your resources.

4. Per Game
Charging per game is effective for standalone, unique experiences like escape rooms or specialty attractions. It provides clear pricing for customers who are looking for a one-off experience.

Embracing Dynamic Pricing
Once you have determined your pricing method and set your profit margin, you can set a base price for your activities and games. Pricing doesn’t stop there though, by incorporating dynamic pricing you can adjust your pricing based on seasonality or peak hours. Charge higher rates during peak times like weekends or holidays and offer discounts during off-peak hours to encourage visits during slower periods.

Membership Pricing
For regular customers, offer a membership model with a monthly or annual fee for unlimited or discounted access. This encourages repeat visits and builds customer loyalty.

Crafting Attractive Package Bundles
Package bundles are a fantastic way to enhance customer experience and increase revenue. By combining popular activities into basic, standard, and premium packages, you cater to a broad range of preferences and budgets.

A La Carte Add-Ons
Introduce a la carte add-ons to let customers personalize their experiences. These could include special features in games, exclusive food and beverage options, or access to VIP areas. Add-ons not only enhance the customer experience but also increase the average transaction value.

Implementing Discounts
Use off-peak discounts strategically to maintain steady traffic and revenue. Offering discounts during slower periods can help attract a different customer segment, ensuring a consistent flow of business at all times.

Testing and Adjustments
Regularly gather customer feedback and conduct A/B tests to refine your pricing. This approach is critical in an industry where customer preferences and market trends are constantly evolving.

Clear Communication
Transparency in pricing is essential. Make sure your customers clearly understand the value and quality of the experiences you offer. In the competitive socializing and eatertainment space, customers are keen on getting experiences that are worth their money.

GoTab Implementation with Rex Reservations
Rex Reservations can be a game-changer in implementing these strategies. Their robust booking platform seamlessly integrates with GoTab's Eatertainment POS, allowing your guests to have 1 tab for their whole experience. Rex allows you to set dynamic pricing and offer different pricing methods for all your activities and games. Features like easy package bundling, add-on management, and the ability to offer discount codes, further simplify the process of crafting and adjusting your pricing strategies.

Effective pricing in the 'eatertainment' and competitive socializing sector is a continuous journey. It involves strategic planning, adaptation, and a deep understanding of customer desires. By implementing these strategies, you're not just setting prices; you're enhancing the overall customer experience, building a loyal customer base, and ensuring the success and growth of your business.

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Situated “in the heart of it all, yet tranquil enough to make you feel away from it all too,” The Limelight Hotel Snowmass offers 99 hotel rooms and 11 residences, as well as footsteps-to-gondola access in winter and summer — right in the middle of Snowmass Base Village.

The Situation

Especially over the last few years, the Limelight Hotels IT team had witnessed a significant shift to contactless technology in the hospitality industry. After evaluating friction points in the guest journey, aligning with modern technology platforms in their restaurant was determined to be an effective way to offer elevated contactless dining experiences to their guests while also evolving their technology platforms to continue to support long-term company goals. Limelight Hotel partnered with GoTab to provide an enhanced on-demand dining experience on par with the brand’s reputation for exceptional guest service.

The Solution

Reducing Staff Touch Points Without Sacrificing Guest Experience

Guests are now able to begin a tab from their room or the property’s restaurant by scanning a QR code, texting a link to friends or family members on the ski slope to add in their orders, then meeting up together at the patio or lodge to enjoy their meal and après ski festivities without interruption. By streamlining tasks like inputting orders and processing payments, this eliminates friction for hotel staff and allows them to focus on delivering renowned guest service for a memorable experience. Since partnering with GoTab, Limelight Snowmass has consistently seen higher check averages and sales.

“We found the Point of Sale platforms we were looking at offered the guest and staff limited opportunities to further reduce touch points or improve the traditional restaurant experience. The GoTab platform enabled the guest to take an active role over the flow of their experience while simultaneously reducing touch points and further streamlining restaurant operations.”Nick Giglio, Manager of Hotel IT Operations, The Little Nell Hotel Group

According to the Limelight Hotels team, some of the other platforms that were evaluated were either missing some of the pieces they were looking for, had weak customer support models, or had little willingness to develop integrations to existing hotel platforms already in place. To that end, GoTab integrated with cloud-based platform, Infor. Together, GoTab and Infor are providing dynamic solutions to support central, efficient service across hotel amenities and deliver exceptional guest experiences.

“Previously, guests would call down to the restaurant to begin an order from their room or while they were out enjoying the ski slopes. Using GoTab, guests can now place orders from anywhere on the resort, giving them the on-demand service they want without interrupting their day. GoTab empowers us to give control to the guest, reducing touch points and streamlining overall restaurant operations, making Limelight Hotel the resort of choice for Snowmass.”Nick Giglio, Manager of Hotel IT Operations, The Little Nell Hotel Group

Since introducing GoTab, The Limelight Hotel has seen a consistent level of upsells and items sold per check resulting in additional revenue capture. They have been able to maintain service levels in their restaurants during periods when there was reduced staffing available without significantly diminishing the guest experience.

The Benefits

Eliminate Phone Orders – Take Orders from the Slopes. Guests can start a tab from their room or on the mountain without interrupting the flow of their day.

Future-Proofed Technologies – Delivering elevated contactless ordering via integration with the Infor hotel management platform.

Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.

  • Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
  • Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
  • Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
  • Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.

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