Rafi Mohammed

What America's Best BBQ Joint Can Teach You About Pricing

Posted on November 12th, 2015 (0 Comments)

When business is strong, it’s easy for arm chair pricing strategists and economists to chant, “Raise your prices.” Economists will defend their position by citing “supply and demand” – a fundamental concept of Econ 101. It’s ingrained in pricing strategists to boost prices to “capture value.” I think raising prices to capitalize on what may be a short term blip in demand can be a big mistake – often detrimental to the long term health of a business.

Please check out my latest – actually my 75th – piece for the Harvard Business Review which discusses the pricing strategy used by the Franklin Barbecue, an Austin, Texas BBQ joint which Bon Appetit magazine has anointed the best barbecue in America. Pitmaster Aaron Franklin’s strategy for pricing (as well as his barbecue) of “low and slow” provides insight for all people involved with pricing can learn from.

Thank you for reading and please follow me on Twitter: @cultureofprofit

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