Ice Cream Wars: Is Price a Winning Strategy?
by Bo McDonald
Two big fast food chains are dueling for the frozen treat market. In one particular town, they happen to be right across the street from each other. The first, of royal persuasion, has been touting the half-dollar cones for some time now. Not to be outdone, the clown’s price is a penny lower.
It’s hard to measure who wins in this case, but certainly the cheaper cone would seem to be the better idea. Can’t lose either way, can you? Big chains, they must know what they’re doing, by giving a better value for the buck. They certainly wouldn’t pull a fast one on the customer or give a small amount ice cream at a lower price just to get someone in the door…would they?
There are so many variables to consider in this case, as there are in any business. Does the customer come in because of the price? Who gets the higher volume of traffic in the late afternoon or evening when people might want an ice cream cone? Is the chain on the north side of the street with west-bound cars more likely than the south side with east-bound cars because they’re headed home at that time?
It seems easy to figure out the consumer, the customer, or the client. But maybe there’s a third choice that’s being ignored. Whatever side of the street, there’s too much traffic to just stop for an ice cream cone. This is where small business becomes the winner. Wouldn’t it be easier to drop by the Mom and Pop ice cream store closer to home, after dinner? Maybe take a leisurely walk to the ice cream parlor after a big meal.
And certainly, the smaller shop, dedicated to the art of scooping ice cream is an experience in itself. What about hand-made waffle cones? One ice cream store owner used to make them right in front of the kids and accidently “break” a few. The kids certainly liked a taste of the cone, which led them to ask for it with their favorite flavor.
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