Case Study: Maximizing Profitability Through Strategic Pricing and Market Timing
- SCMG
- Mar 5
- 2 min read
Background
For this Richmond location, Valentine's Day has historically been a key revenue driver. In 2025, the holiday fell on a Friday, creating a unique opportunity compared to the prior year when it landed on a Wednesday. This shift influenced consumer behavior, spending patterns, and overall profitability.
Objective
The goal was to analyze the impact of Valentine's Day falling on a weekend-adjacent day and how strategic adjustments in pricing and sales strategy influenced revenue and labor efficiency.
Key Insights & Performance Comparison (2024 vs. 2025)
1. The “Friday Effect” Led to a 130% Revenue Increase
2025 (Friday V-Day): $25,000
2024 (Wednesday V-Day): $10,865
YoY Growth: +130% in total revenue
Why?
Fridays offer more flexibility for weekend celebrations, leading to longer stays and higher spending.
A midweek Valentine’s Day limits dining and entertainment options for many customers, reducing traffic.
2. Labor Costs Increased but Became More Efficient
2025 Labor Cost: $4,521.14 (+80.2% YoY)
2024 Labor Cost: $2,508.85
Labor Cost as % of Sales:
2024: 23.1%
2025: 18.1% (21.7% more efficient)
Why?
While labor costs rose, they became a smaller percentage of total revenue, improving profitability.
Higher spending justified the need for additional staff without hurting overall margins.
3. Shift in Package Sales – Less Volume, More Profit
Package Type | 2024 (Wed V-Day) | 2025 (Fri V-Day) | YoY Change |
Couple’s Packages Sold | 112 | 20 | -82% |
Family Packages Sold | 27 | 22 | -18.5% |
Couple Package Revenue | $1,479.62 | $1,499 | +1.3% |
Family Package Revenue | $719.91 | $879 | +22.1% |
Why?
In 2024, the strategy focused on high-volume, lower-priced packages.
In 2025, a shift toward higher-value premium pricing resulted in fewer sales but higher revenue per package.
Despite selling fewer total packages (-82% drop in couples' packages), the overall total revenue increased by 120%, reinforcing a more profitable pricing model.
Strategic Takeaways
✔ Premium Pricing Works – Focusing on higher-value packages rather than maximizing volume led to increased revenue.
✔ Weekend Timing Matters – A Friday Valentine’s Day generated more traffic and spending, showing the impact of strategic scheduling.
✔ Labor Efficiency Improved – Despite spending more on staffing, profitability increased due to higher revenue.
✔ Future Strategy Considerations – The business should factor in weekday/weekend shifts when planning future promotions.
Final Thought
A Friday Valentine’s Day significantly boosted consumer engagement and spending, proving that timing plays a major role in sales performance. The decision to shift from volume-driven sales to premium pricing resulted in higher profitability with fewer sales, setting a strong precedent for future pricing strategies.