PRICING STRATEGY IN RESTAURANTS
Introduction
Pricing strategy is the stage where the company classifies and classifies the products
or services it produces as 'new products' that do not yet have loyal / loyal consumers or
'products that have been circulating' that already have their own market share. This pricing
strategy is also related to the product life cycle where a product has four main stages,
namely, Introduction, Growth, Maturity and Decline.
Pricing must support a variety of costs such as operating, administrative, research,
and marketing costs, but it also cannot be too high as consumers may turn to competing
products. Pricing is therefore a decision that represents the value of the product that
consumers can accept. Pricing above the market utilizes the general assumption that higher
prices have better quality. Meanwhile, pricing below the prevailing market price can be
successful if a company can offer products of acceptable quality by keeping prices below
competitors' prices. The cost-plus pricing method is the determination of the selling price by
adding the expected profit above the full future cost of producing and marketing the product.
In this method, the seller or producer sets the selling price for a unit of goods equal to the
sum of the cost per unit plus an amount to cover the desired profit (called a margin) on the
unit.
There are 4 categories in cost-based pricing, namely: 1). Cost-Plus Pricing Method -
which sets the selling price per unit based on the total cost per unit plus a certain amount as
profit or margin (selling price = total cost + profit); 2). Mark-up Pricing - which is pricing
often used by intermediary traders or resellers/dropshippers by adding the purchase price
with a certain amount of profit (selling price = purchase price + profit/markup); 3). Fixed
Fee Pricing - which is pricing based on the amount of costs incurred by the producer of the
product plus an agreed fee, so the profit earned does not affect the selling price of the goods;
4). Target Pricing - which is pricing based on the rate of return on investment (ROI) in
accordance with the desired target.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
Pricing Strategy Based on Competition
This strategy highlights the prices of similar products issued by competing industries.
There are two methods that can be used, namely: 1). Perceived Value Fixing, namely setting
the selling price based on the average selling price of similar products; 2). Sealed Bid Pricing
is the determination of selling prices based on offers submitted by competitors. According to
Marrus (2010: 37) strategy is defined as a process of determining the plans of top leaders
who focus on the long-term goals of the organization, accompanied by the preparation of an
effort on how these goals can be achieved. Every company or organization, especially
services, aims to provide good service for customers. Therefore, every company or
organization strategy must be directed at customers. This is as explained by Prahalad (2011:
49) "that strategy is an action that is incremental (always increasing) and continuous, and is
carried out based on the point of view of what customers expect in the future". Thus, strategy
almost always starts from what can happen rather than starting from what happened. For
example, the strategy may direct the organization towards reducing costs, improving quality,
and expanding markets. A strategy can work well by making sure that it is not only believed
by others, but that it can be implemented.
Prahalad (2011: 136-138) provides some guidelines as follows: Strategies must be
consistent with the environment, strategies are made following the current development of
society, in an environment that provides opportunities to move forward. Each organization
does not only make one strategy, depending on the scope of its activities. If there are many
strategies made, one strategy must be consistent with the others. Do not contradict or
contradict, all strategies are always harmonized with each other. An effective strategy should
focus and unite all resources and not scatter them from one another. Unhealthy competition
between various work units in an organization often claims its resources, leaving them
separate from other work units so that these unified forces are detrimental to the
organization's position. Strategy should focus on what are its strengths and not on what are
its weaknesses.
In addition, it capitalizes on competitors' weaknesses and makes appropriate moves to
occupy a stronger competitive position. Resources are critical. Since strategy is possible, it
should be made feasible. Strategies should take into account risks that are not too great.
Indeed, every strategy contains risk, but it must be careful, so as not to plunge the
organization into a bigger hole. Therefore, the strategy should always be controllable.
Strategies should be prepared on the basis of the success that has been achieved. Signs of the
success of a successful strategy are shown by the support of the parties involved from the
executives, from all unit leaders in the organization. As described by Husein (2013: 55) that
company strategies can be classified based on company type and task level. Judging from the
type of company, there is a conglomerate company strategy that has several Strategic
Business Units (SBU), and a small company strategy with only one SBU. Meanwhile, in
terms of task level, strategies can be classified into: genericstrategy, grandstrategy, and
functional strategy.
Price is one of the elements in the marketing mix that has an important role and even
determines the success of a marketing activity. With the price, a marketer can project what
level of sales will be achieved and how much profit will be obtained. According to Kotler
and Armstrong (2010: 314) what is meant by price is: "price is the amount of money charged
for a product or service, or the amount of value that consumers exchange for the benefits of
owning or using the product or service". The price offered to consumers must be in
accordance with the consumer's view of the value and benefits obtained from the product.
Price has an important role for the company, because price has an influence on the
company's ability to compete with other companies. According to Tjiptono (2012: 158) price
can be defined "as a monetary unit or other measure (other goods and services), which is
exchanged in order to obtain value for the right to ownership or use of a good or service".
According to Chandra (2012: 153) the term price can be interpreted as "a sum of money
(monetary units) and or other aspects (non-monetary) that contain certain utilities or uses
needed to obtain a product". From these definitions, it can be concluded that price is the
nominal value that must be exchanged by consumers to producers, to get the goods or
services they need.
Companies typically do not set a single price but rather a pricing structure that
reflects geographic differences in demand and costs, market segment needs, timing of
purchases, order levels, and other factors. As a result of providing discounts, deductions, and
promotional support, companies rarely realize the same profit from each unit they sell. Some
price adaptation strategies according to Porter (2010: 248) are: Geographic Pricing (Cash,
Trade Returns, and Barter). Geographic pricing requires companies to decide how to set
prices for customers in different locations and countries. Will the company charge higher
prices for distant customers to cover higher shipping costs and risk losing customers? Will
the company pursue the proposal of barter trade instead of direct payment in money in
dealing with foreign buyers? Many companies will have to consider exchanges if they wish
to trade with certain buyers. Price Discounts, Companies set prices by measuring the cost of
providing discounts or rebates against their impact on sales. Discounts that can be given
include: Cash Discounts, are price reductions for buyers who pay their bills promptly.
Quantity Discount, is a price reduction for buyers who buy in bulk. Functional Discounts
(Trade Discounts), offered by manufacturers to members of the trade channel if they perform
certain functions, such as: selling, storing, and keeping records. Seasonal Discount, is a price
reduction for buyers who purchase goods or services out of season. Deductions, which are
reductions from the list price.
Shopping with discounted prices is very easy to find in United States because
discounts are one of the promotional strategies of a business. Discounts seem to be the main
attraction to attract people to consume an item. There are several definitions of discounts and
rebates put forward by several experts. According to Kotler (2010) a discount is a direct
reduction in the price of goods on purchases during a stated period of time. Meanwhile,
according to Tjiptono (2012: 86) a discount is a discount given by the seller to the buyer as a
reward for certain activities of the buyer that are pleasing to the seller. Based on several
definitions above, it can be concluded that a discount is a price reduction given by the seller
to attract consumers to buy a product within a predetermined period of time. Discounts are
one of the company's strategies in marketing its products to attract consumer interest. Apart
from attracting consumer interest, discounts are also intended to introduce new products to
consumers, or it could also be due to the accumulation of products that have not been sold so
that the company provides a high discount. According to Philip & Kotler (2010; 96) the
definition of a discount is A discount (from the invoice price or book price) is a direct
discount from the book price for each pack purchased during the stated period. Discounts are
discounts given by sellers to buyers as a reward for certain activities from buyers that are
pleasing to the seller.
Based on some of the definitions above, it can be seen that a discount is a price
reduction given by the company within a certain period and to increase sales of a product. A
discount is a reduction in the price of a product from the normal price within a certain period,
the dimensions of the discount are the amount of the discount period, the type of product that
gets a discount. According to Mankiw (2011: 75) The strategy of determining the amount of
price affects the amount of consumer demand. In the law of demand, it is explained that
when the price of an item increases, the amount of demand will decrease, and when the price
drops, the amount of demand increases. Since the amount of demand falls as prices rise and
increases as prices fall, it can be said that the amount of demand is negatively related to
price.
According to Cravens (2009: 127) in choosing the final price, companies must
consider various additional factors, including psychological pricing, the effect of other
marketing mix elements on price, company pricing policies, and the impact of prices on
other parties ". Furthermore, Cravens explained that in choosing the final price, it is
necessary to pay attention to several things, namely: Psychological pricing. Sellers must
consider psychological prices in addition to economic factors, because many consumers use
price as an indicator of quality. The influence of other marketing mix elements on price. The
final price must consider the quality of the brand and advertising compared to competitors.
The company's pricing policy. The price set must be consistent with the company's pricing
policy. The goal is to set a price that is feasible for customers and profitable for the
company. Price impact on other parties. Management must also consider the reaction of
other parties to the price that has been determined.
Final pricing is very important for companies. The right price will have a real impact
on the company such as increased sales. This is because consumers always consider price in
buying a product. According to Kotler & Keller (2010: 167) There are two ways that can be
used in pricing new products, namely as follows: Skimming Price, which is setting a high
price on a new product, accompanied by a large promotion. Then the longer, the price will
go down. Penetration Price, which is the opposite of skimming price, by setting the lowest
possible initial price to gain market share. A wide range of products that reach all circles in
order to build an image for consumers.
According to Kotler & Keller (2010: 182) purchase intention is based on how
consumers perceive prices and what actual current prices they consider, not the prices stated
by marketers. Customers may have a lower price limit where prices lower than that limit
indicate poor quality or unacceptable quality and also an upper price limit where prices
higher than that limit are considered too excessive and not worth the money spent and the
benefits obtained. Understanding how consumers arrive at their price perceptions is an
important marketing priority. According to Tjiptono (2012: 371) prices play an important
role for the macro economy, consumers, and companies. For the economy, product prices
affect wage, rent, interest and profit levels. Price is a basic regulator in the economic system,
because prices affect the allocation of factors of production such as labor, resistance, capital,
and entrepreneurship. High wage rates attract labor, high interest rates attract capital
investment, and so on. As an allocator of resources, prices determine what will be produced
(supply) and who will buy the goods and services produced (demand). For consumers in
retail sales, there are segments of buyers who are highly price-sensitive (making price the
only consideration for buying a product) and others who are not. The majority of consumers
are somewhat price sensitive, but also consider other factors (such as brand image, location,
service, value and quality). In addition, consumers' perception of product quality is often
influenced by price. In some cases, high prices are perceived to reflect high quality,
especially in the category. For the company. Compared to the rest of the marketing mix
(product, distribution and promotion) which requires a large expenditure of funds, price is
the only element of the marketing mix that brings in revenue. Product price is the main
determinant of market demand for the product. Price affects a company's competitive
position and market share. In turn, price affects sales revenue and net profit. In short,
companies earn money through the prices they charge for the products or services they sell.
Pricing is very important to pay attention to and do with good consideration because the
price will affect various things such as wage rates, rent, interest, profit. For consumers, price
is also one of the considerations for deciding to buy a product. For companies, the price will
also be determined from how much money has been spent on creating a product. Pricing will
also affect how much profit the company makes in selling a product. The price will also
determine the extent to which the product can compete with other similar products.
Demand determines the upper price limit that a firm can charge for its products and
the firm's costs determine the lower limit. The company wants to set a price that can cover
the costs of producing, distributing and selling its products, including an adequate return on
its efforts and risks. According to Stanton (2012: 96), companies distinguish between types
of costs and cost behavior. Types of Costs: Fixed costs, are costs that do not vary with
production or sales. Variable Costs, Are costs that vary directly with the level of production.
Cost Behavior: Cost behavior at various production levels per period. To be able to set prices
appropriately, management needs to know how its costs vary with different levels of
production. Cost behavior as a function of accumulated production. The more experienced a
company is in production, the average cost tends to decrease. Cost behavior as a function of
market supply differentiation. Firms try to adapt offerings and requirements for various
buyers. Target costing. Companies use market research to determine the desired functions of
a new product. It then determines the selling price of the product according to its
attractiveness and competitors' prices. Subtracting the desired profit margin from the selling
price results in a target cost that must be achieved. The goal is for the final cost projection to
fit within the target cost range.
Pricing strategies are classified into three orientations according to Ma'ruf (2015:
294), namely: Demand orientation, This pricing is based on consumer demand, namely by
looking at changes in consumer choice of services at different prices, then choosing a price
that matches the level of purchase the company wants to achieve. Cost orientation, cost-
based pricing that is widely adopted by companies is markup pricing. The company will set
the price by adding the product acquisition cost (HPP) per unit with all operational costs, and
the desired amount of profit. Competition orientation, Pricing The company does this by
following the prices set by competitors. The company will not be hasty in making price
changes and the company will make new price changes when competitors who are used as
benchmarks change their selling prices.
Kotler (2009: 315) states that the factors that determine pricing policy consist of;
Choosing pricing objectives. Determining demand. Estimating costs, Analyzing costs, prices,
and competitor offers. Choosing a pricing method. Choosing the final price. Swastha (2009:
72) states "Decisions regarding prices are influenced by various factors, namely: factors
internal to the company and factors of the company's external environment ". According to
Purnama (2011: 93) the factors that influence price sensitivity to buyers can be identified as
follows; The influence of unique value. The influence of awareness of substitute products.
The effect of difficult comparisons. The effect of total expenditure. The effect of the final
benefit. The effect of shared costs. The influence of embedded investment. Effect of price
quality.
According to Kotler & Keller (2010: 75-76), there are five main objectives in setting
prices, namely: Survivability, Companies pursue survivability as their main goal if they
experience overcapacity, intense competition, or changing consumer desires. As long as the
price covers variable costs and some fixed costs the company remains in business. Maximum
Current Profit. Many companies try to set prices that will maximize current profits. The
company estimates the demand and costs associated with alternative prices and chooses the
price that generates the maximum current laga, cash flow, or return on investment.
Maximum Market Share. The company believes that the higher the sales volume, the lower
the unit cost and the higher the long-term profit. The company sets the lowest price assuming
the market is price sensitive. A market penetration pricing strategy can be applied under
conditions; The market is highly price sensitive and low prices stimulate market growth.
Production and distribution costs decrease as production experience accumulates. Low prices
encourage actual competition. 4. Maximum Market Skimming. (Market Skimming Pricing)
The company reveals a new technology that sets a high price to maximize market milking
where the price is initially set high and slowly decreases over time. Skimming Pricing is used
in conditions such as the following: There are enough buyers whose current demand is high.
The unit cost of producing small volumes is not so high that it eliminates the benefit of
charging the maximum price that the market can absorb. A high starting price attracts more
competitors to the market. A high price communicates a superior product image. Product
Quality Leadership. Many brands seek to be "affordable luxury" products or services
characterized by a high level of perceived quality, taste and status at a price high enough to
not be out of reach of consumers.
Pricing has a very broad function in the marketing program. Setting prices means
how to link our products to the aspirations of the target market, which also means having to
study the needs, wants and expectations of consumers. Talking about price means talking
about the image of quality and how high the exclusivity is. The high and low price greatly
affects the perception of quality, thus determining the image of a brand or product. In
consumer perception, the logic often applies that an expensive price means good quality and
a low price means less quality. At a certain level, setting a price also means talking about
exclusivity. Although it must consider various other related factors, it can be said that the
higher the price set relative to competitors, the more exclusive the target consumers are. It's
like a pyramid. The smaller the peak, the higher the price, the fewer consumers are targeted.
Imaging pricing is very effective for ego-sensitive products, such as cars that cost more are
considered to be of high quality. According to Kotler & Keller (2010: 73), "when alternative
information about actual quality is available, price as an indicator of quality becomes less
important. When this information is not available, price acts as a sign of quality".
Meanwhile, according to Tjiptono (2012: 95), "a product is anything that a producer can
offer that is noticed, requested, sought after, used, or consumed by the market as a
fulfillment of the needs or desires of the market concerned".
Research Methods
This research uses a qualitative descriptive research approach, explaining the
phenomenon under study. The data in this study consisted of primary data, namely data
obtained from interviews with informants, and secondary data. The informants selected in
this study are 1). Owner of Hasrat Restaurant; 2). Employees of Hasrat Restaurant 2 people
3). Customers of Hasrat Restaurant 3 people determining research subjects from customers
were taken using incidental sampling techniques. Data collection used in the research
framework is by method 1). Interview, namely conducting interviews with informants who
are directly involved and know the problem, 2). Direct observation, namely the researcher
directly observes the work implementation of the desire restaurant. The analysis technique
used is qualitative analysis technique. Data obtained from interviews and document
collection in the field, categorization is carried out so that the data source can still be traced,
it is easy to classify data, then processed, analyzed and conclusions drawn. The research
location is Hasrat Restaurant, which is located on Jalan Beringin Nanga Pinoh, Melawi
Regency.
Results And Discussion
Hasrat Restaurant has implemented a discount pricing strategy in its business. This
strategy is carried out so that it becomes an attraction for consumers because the price is
affordable by customers. Discounts given include discounts on price cuts for a minimum
purchase of 5 servings, discounts at the beginning of each month is the time when most
workers get a salary. Providing discounts at the beginning of each month is more effective,
because the money from the salary is still not much used for daily needs, a 20% discount is
applied to all menu items every 1st-5th. Then the discount for regular customers (member
strategy) is the goal is to retain consumers so that they do not move, this reason makes
members treated specifically.
Competitive Pricing Strategy is carried out through a relative pricing strategy, namely
determining prices below or equal to the competitive price level where the price movement
follows the movement of prices in other restaurants in Nanga Pinoh. However, in setting
competitive prices, it is also realistic not to be too low just so that the food sells a lot of
buyers because it must be ensured that all costs have been taken into account. Therefore,
Hasrat Restaurant has data on the selling prices set by competitors, as a consideration in
determining competitive prices considering that not all consumers will only buy food at low
prices. Restaurant employees must direct customers to eat and make them feel comfortable
beyond the services provided by other eating places. The restaurant desires to be able to
attract attention of as many customers as possible to win the competition.
In addition, in the restaurant business competition, good product or service quality is
something fundamental. In addition to quality offerings, we need to transform and
conceptualize the restaurant business into a brand that can be trusted and attracted by many
people. In running a restaurant business effectively is to avoid the mistakes made by other
restaurant entrepreneurs. For example, many restaurant entrepreneurs fail in opening their
culinary business because of the lack of market research and cannot find the right target
customers, do not have careful planning related to financial management. Most of them also
do not have a marketing plan for branding. In fact, branding is a strategy that you must
design immediately to start building a reputation in business competition. An established
brand of any business can easily face business competition.
There are several aspects of food cost that should be considered before setting prices.
Careful and consistent attention should be paid to these aspects as changes in these aspects
can also affect menu prices. Costs to be considered include: The price of raw materials
purchased directly for a set menu as well as the portions of food sold to customers fall under
this type of cost. Indirect costs, these are items that are paid for other than the main
ingredients of the set menu. These things are part of the restaurant that serves to add value
and quality to the restaurant such as table decorations, ornamental plants, and others. In
addition, the costs incurred to run and support the operational activities of the restaurant,
these types of costs are the same as marketing costs.
In addition, indirect labor costs must be considered, for example, if there is a large
special order, it is necessary to pay extra wages for the cook who works on the order.
Costing can be based on the time until the order is completed or the number of servings of
the special order. Also considered is the cost of ingredients, which can change with the
seasons and economic conditions. Another cost consideration is that the cost of service can
increase or decrease the price of the menu, for example, charge less for service, charge more
for the type of service provided, but not with excessive service costs, the cost is in
accordance with the quality of service. This is necessary to know the lowest and highest
amount of price that can be charged for each set menu.
Conclusions
The discount pricing strategy at Rumah Makan Hasrat consists of cutting prices for a
minimum purchase of 5 servings, early month discounts are given a 20% discount on all
menu items every 1-5, discounts for regular customers are given a 10% discount on all menu
items. The Competitive Pricing Strategy at Hasrat Restaurant is carried out through a relative
pricing strategy, namely determining prices below or equal to the competitive price level
where the price movement follows the movement of prices in other restaurants in Nanga
Pinoh. The cost-based pricing strategy at Rumah Makan Hasrat is based on aspects of Food
Cost (food costs), service costs, marketing, and transportation costs. It is recommended that
Rumah Makan Hasrat maintain and improve the discount pricing strategy that has been
running well, maintain a competitive pricing strategy so that it can still compete with other
restaurants, maintain a cost-based pricing strategy to continue to make a profit with a selling
price that is relatively affordable by customers.
