Sven has opened a second snack bar in the same building as his chip shop De Frietist, but offers products 50 cents cheaper! How it is possible. Our colleagues from the HLN asked him the question.
“I don’t want people to buy cheaper fries”, so it was not on the price of fries that Sven changed his profit margin, but of course all the other snacks in his chip shop. Sausages, balls, meatballs and meatballs are sold at a lower price because the brand he offers in this snack is called “white”, or “brand B”.
“We prepare a lot of dishes ourselves and for our snacks we invariably choose the A brands (like Mora, Beckers, etc). But all the efforts we have been making for years to provide quality are beginning to do us a disservice more and more. Last year, for example, A-brands became 20% more expensive to buy, compared to just 7% for B-brands.”
All these increases gave him pause and his solution was to offer products that were cheaper, but also slightly less qualitative.
“I want to avoid customers saying that the quality of De Frietist has gone down, so I decided to create a second chip shop in the same building”. Be Friet therefore does not really compete with its first store.