Author Topic: Pizza Size & Price.....Seem Odd To Me  (Read 398 times)

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Online RobDude

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Pizza Size & Price.....Seem Odd To Me
« on: May 05, 2015, 03:09:51 PM »
I wasn't sure if I should ask this here or in the General Pizza Making forum.  It's not really a pizza making question but, as I've started making my own pizzas I've noticed that the size (in terms of total area) for a pizza seems weirdly related to the cost.  One of my goals with making my own pizza was to save money, so I've been putting a cost on each of my pizzas and when I compare them to actual pizza shops - it seems weird.

I grew up eating Rosati's (Chicago pizza chain) it's
$13.99 for a 12" one topping pizza.
$16.99 for a 16" one topping pizza.
$22.99 for a 20" one topping pizza.

But in terms of size a 16" pizza is almost twice as big as a 12".  And the 20" is really close to 3x as big as the 12" - but it costs less than twice as much!

What's the reason for the bigger pizzas being such a better value?  I guess you'd have lower per-pizza cost for the box?  Or is it a marketing thing where people are more likely to order more than they would have otherwise?

Personally, if they only had a 12" pizza, and I wanted a 20" - I'd end up ordering three :)



Offline Jon in Albany

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #1 on: May 05, 2015, 03:41:44 PM »
I'm not sure why, maybe it's a bulk price, or a similar amount of labor goes into a larger pie or maybe something else. But NPR did a price survey awhile back and larger was just about always cheaper.

http://www.npr.org/blogs/money/2014/02/26/282132576/74-476-reasons-you-should-always-get-the-bigger-pizza

Online mitchjg

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #2 on: May 05, 2015, 03:58:09 PM »
Not all costs are variable.  A pizza that is twice as big would cost you twice as much only if all costs were variable.  The time for a worker to make either size is certainly not double, more like the same time.  Electricity or gas is not double, the order taker's time is not double, etc.

And, not all markups on each item are the same.
Mitch

Online RobDude

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #3 on: May 05, 2015, 04:22:06 PM »
Not all costs are variable.  A pizza that is twice as big would cost you twice as much only if all costs were variable.  The time for a worker to make either size is certainly not double, more like the same time.  Electricity or gas is not double, the order taker's time is not double, etc.

And, not all markups on each item are the same.

That's a fair point - I was thinking 'Well, you need an employee working in either case' but you'd probably need more staff to handle 30 12" pizzas than 10 20" pizzas.  And a bigger oven too.

Offline GotRocks

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #4 on: May 06, 2015, 03:32:15 PM »
Labor cost has much to do with it, and it also depends on what the local market will accept
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Offline David Esq.

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #5 on: May 06, 2015, 06:59:58 PM »
It isn't less expensive to buy the bigger pie. It is just a better value. The seller wants to encourage people to spend more and people like the idea of a bargain. Everybody wins.

Offline jkb

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #6 on: May 06, 2015, 07:46:25 PM »
It's those prices that seem odd to me.  An 18" 1 topping is about $12.50 around here.

Offline theppgcowboy

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Re: Pizza Size & Price.....Seem Odd To Me
« Reply #7 on: May 11, 2015, 10:22:17 AM »
Sometimes you do get what you pay for.  My 12"one toppings are $11.