Food prices drop significantly at Cedar Point

I wonder if they will consider lowering the price of games so people will actually play them?

I think this is a very bold move in the right direction. It flies in the face of 6Flags, who raised practically every price point in the park. I know I'm tired of going to a park and feeling raped in the wallet, and I'm single with no kids. I really don't understand how an average family can afford a trip to the park these days. It might not be a permanent thing to lower the prices, but if its a real money looser, then they can always raise the prices back later. This reinforces my love for cedar point, and how sensitive they are. They build beautiful coasters, run them efficiently so you dont' have to pay extra for a line-skipping fast-pass, and now this. Yum.

I wonder the reason was for the 10 cent increase in the slush drink.

And who is going to buy a bag of cotton candy for $2.49 when the stick version is 20 cents?

Great idea though. I might even consider buying park food now instead of patronizing my old hangout: cooler in the trunk.

I wish they would try an experiment of making the prices VERY reasonable, like $1.00 for a large soda. And $5.00 for an on-ride photo. I would actually buy stuff while I'm there if the prices were reasonable.

Define reasonable? Does anyone out there have any idea what equipment costs? What about buying a quality product for the guests. Not all parks sell substandard products. Some parks sell great items, and they cost money.

Equipment costs money. POS units cost money. Warehouses cost money. Training costs money. Time is money. Signage costs money. Paper goods cost money.

Agent Johnson has a point. At the end of the day, it's all about the profit and I don't think parks would be able to afford 20 million dollar rides if they were selling sodas at $1.00 each. Then again I could be wrong.

^ Agreed, I have mentioned a few times how much more expensive it is for a park to sell a soda than it is for the local convenience store. Yet at DAK they managed to sell me a 20 oz. DIET COKE for 2.00 - which I consider reasonable under the circumstances...

Now they need to promote it somehow, and although the new Ride On ad on the website is an imporovement and I imagine a test run for the TV commercials they need to mention the ticket drop and food drop, also why not reduce parking while your at it.

But things look up and up, and I think we have Hildebrandt to thank for most of it

So is this an attempt to increase attendance or to decrease revenue?

Or both? ;)

More than ever, I'm looking forward to end-of-year numbers from these CF parks that dropped price compared to the SF parks that raised them. As a believer in the "less customers at a higher margin" approach, I'm thinking the results will be quite surprising to a lot of people.

---

I wonder if they will consider lowering the price of games so people will actually play them?

---

People already do play them, and they make a ton of money. Word on the street is that the games midway rehab last year was money very well spent.

Somehow Holiday World can give away soda. I've never been there and I know nothing about their attendance figures or how much merchandise, games and food cost at HW, but they had enough in the bank to finance the Voyage as well as a few other upgrades over the past few years. Maybe CP is looking at them and saying Hmmm... And the opposite - looking at 6flags and saying 'those fools". And Dollywood too. I have a gold pass, I don't pay for parking, I get 20% off meals and merchandise and a few other perks. I really feel like I'm getting a good deal when I'm there. Maybe it's just an illusion, but I'll take it.

"less customers at a higher margin"

I'd be curious to know what the margin was in the first place.

I agree that higher margins allow for fewer customers - look at high end retailers versus Wal-Mart. However, if the business folks at CF felt that their margin was too high in terms of customers, price drops may help. There is also the idea that any price drop could involve renegotiating contracts with vendors, reduction in quality, and the psychological end of the whole consumer cycle.

Personally, I think it has gotten out of hand in some places. PKI wants $3.50 for a 24oz soda. I can afford it, but I won't buy as many, more out of principal than anything else. Of course I just bought passes for a family of 7, with parking too, so I am/was a little sensitive to cost.

---

CoasterDad64:
I'd be curious to know what the margin was in the first place.

---

Yeah, that'd be useful.

All I know is that the gate dropped 11%. That means an almost 13% increase in attendance is needed to make the same revenue. On top of that they dropped food prices in the park an average of 20% according to the article.

Even if they make up the 11% price drop at the gate, if in-park food buying remians constant (in terms of volume, not dollars), they're down between 11% and 12% on food revenue.

Still assuming the lower gate will drive attendance (which I don't necessary believe in the first place), and knowing food dropped an average of 20% then the guest has to buy 12.5% more food (based on an 'average') to make up the difference.

So with the price drops, just to keep the numbers the same they need an 13% increase in attendance and on top of that need their guest to buy 12% more food. And that doesn't take into effect the increased costs of putting more people throught the gate and selling more volume.

It just doesn't add up for me.

(note: I feeling a little under the weather today - my math may be a tad off, but it's in the ballpark :) )

The only way this works is if...well...

---

coasterfreaky:
Maybe it's just an illusion, but I'll take it.

---

:)

...and that doesn't even start to ask the question of "Does 13% more people in the park mean 13% longer lines?"

*** This post was edited by Lord Gonchar 4/27/2006 2:12:34 PM ***

I would imagine the lower prices are geared towards the local audience.

If anyone can handle a 13% attendance boost its Cedar Point. The only lines in the park anymore are MF and TTD, when its running. Just about every other coaster in the park has been a practical walk on for me in the last three years.

Will the 20% cheaper drinks contain even more ice? Will the fries be smaller? Will there be fewer staff in each food booth? Did the durable goods (T-shirts etc) have a 20% increase in price?

So many variables.

I guess we will see quantity and quality issues after the season starts. Then of course the bottom line becomes more apparent at the end of the 3rd quarter.

As for lines, with possibly fewer food service staff, the lines at the concessions may make up the difference.

"Wait from this point for Cheese-on-a-Stick is approximately 30 minutes."

I agree it is a very bold mood. To tell you the truth, I feel bad for Cedar Point. I'd much rather pay $3.00 for a Pepsi there than at a Six Flags park, they DESERVE the money for their consistently high quality park and excellent operations.I hope it goes well for them and doesn't backfire, making them loose money.

As far as the Pepsi goes, I don't know about the equipment itself, but the actual Pepsi costs them about 4-5 cents to fill up a 21 oz cup. The cup, straw, and top costs more than the actual soda.

However bottles cost more along the lines of 40-50 cents for the park.
*** This post was edited by Ride of Steel 4/27/2006 2:31:53 PM ***

Last time I checked... the water fountains were still free. Best bargain in the park.

Thats why we do not have any.

Other CF parks. I wonder if this will carry over?