Why do bakeries seldom offer discounts

2024-05-04 07:12 Source: Economic Daily

Recently, the topic of "How serious is the waste of bread" has aroused heated discussion. It is reported that the daily bread loss rate of some baking stores can even exceed 50%. At the same time, the topic of "bread assassins", such as dozens of yuan a piece of bread and hundreds of yuan a piece of toast, has also been on the hot search for many times.

On the one hand, the price of bread remains high, and on the other hand, it is wasteful. Many netizens suggest that when the shop closes at night, the unsold bread of the day will be sold at a discount, which can alleviate the waste to some extent. However, some businesses did not adopt this measure and seemed more willing to report losses.

Why don't you want to discount? What's the secret behind this?

From the perspective of merchants, discount sales may affect the normal sales of bread. For example, the same bread can be sold for more than ten yuan when it is baked in the morning, but it can only be sold for six or seven yuan when it is sold at a discount in the evening. In this way, some customers may wait until the discount to buy, and the bread sold at normal prices will become less, affecting the business turnover. In addition, maintaining a relatively stable sales price will also help stabilize customers' price expectations for products.

In many cases, high prices are often associated with high quality and unique experiences. Some baking brands, especially high-end brands, need a unified price system to maintain their brand tonality. If the price changes constantly, it will affect the brand tonality, and may also affect the purchase behavior of loyal customer groups.

From the perspective of customers, it is often said that "cheap is not good". The bread on sale may cause customers to have a sense of distrust such as "what was the price before", and doubt whether it is worth the money, whether it is of good quality, and whether it is not fresh enough, thus reducing their trust in the bakery.

So the problem is, why can't we sell so much bread?

On the one hand, shop windows should be full. Research shows that product diversity has a strong positive correlation with customers' purchase intention. Product diversity and shopping environment satisfaction can enhance customers' willingness to stay in the store, and even cultivate repeat customers invisibly. In other words, it can stimulate customers' desire to buy if the shop windows are full and complete. In order to fill the shelves with products, merchants choose to produce enough or even excessive bread. If the bread is not sold completely within the warranty period, it will cause loss reporting.

On the other hand, the baking industry is a traditional high premium industry. Even with the loss and waste, the gross profit margin still has a large space. In order to make up for the cost increase caused by the high loss reporting rate, the bakery will maintain the price of goods to ensure profitability. The higher the price of the product, the higher the loss reporting rate; The higher the reported loss rate, the higher the price. Businesses have their own pricing power. They would rather do more than sell out.

Another reason is that bakeries usually provide a variety of flavors of bread to meet the needs of various customers. This means that even if the sales of some flavors of bread are poor, the bakery still needs to make them to maintain the diversity of varieties.

For bakeries, how to reduce waste and improve the cost performance while maintaining the brand tone, and how to explore a win-win path that gives consideration to both benefits and reduces waste, are issues that must be considered.

For example, we can optimize production and inventory management, rely on big data such as customer flow and purchase records to forecast demand, optimize production processes, strengthen inventory management, reasonably arrange production capacity, and avoid waste caused by excess.

It is hoped that more businesses will find more effective ways to solve the problem of waste through innovation. How to deal with the bread that can't be sold in the bakery? Do you have any good suggestions?

For more information or cooperation, please follow the official WeChat of China Economic Network (name: China Economic Network, id: sourcecn)

View the rest of the full text
(Editor in charge: Tong Mingbiao)