How does Dominos Pizza gain profit in the Buy 1 Get 1 scheme? Does it clear the remained weekly stuff by selling it under an offer?

By | October 18, 2016

This means that the cost to make a pizza for Domino’s including the overhead costs(labour, rent, electricity, logistics) is less than 50% of the pizza’s price.

An average medium eg pizza costs around 300 Rs. The pizza base is just made of maida. As they are mfging Pizaa bases in large quantities it would not cost more than 10 Rs for medium size pizza base. Vegetables like capsicum, onioin, tomato, corn(al together) hardly cost few Rs 5 . For others like jalpeno or panner may cost a little extra. The mozzarella cheese used for pizzas costs 400 Rs per KG in stores. As they buy in bulk, it would be around 250/kg. The amount used for a pizza would be around 10 RS.

Fixed cost is 20Rs
Additional cost(rent/electricity/wages/petrol) if you add up will come to roughfy 20 Rs per pizza( This number is indicative and depends on the total sales per month)
So total cost for hem is 40 Rs. The rest 260 is profit for dominos.

So instead if they sell 2 pizzas for 300, they get a profit of 220 for 2 pizzas. But the number of pizzas sold would be more due to offer. So overall profit increases for dominos.

Source :https://www.quora.com/How-does-Dominos-Pizza-gain-profit-in-the-Buy-1-Get-1-scheme-Does-it-clear-the-remained-weekly-stuff-by-selling-it-under-an-offer

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