To Maintain Margins During Inflation, Dry Falls Brewing Turns to Dual Pricing

Similar to many craft businesses suffering from the historic inflationary environment, COGS (cost of goods sold) increased 30-40% for Dry Falls Brewing in Hendersonville, N.C.. So when Arryved POS presented the opportunity to completely recover payment processing fees for both debit and credit transactions, they jumped.

"This was totally financially motivated. It's a really easy way to help with our overall cost increases without raising prices for our guests," Jeff explains. He adds: "Dual Pricing is adding to our bottom line."

Dual Pricing increased revenue $2,641 in Dry Falls' first 25 days of implementation. That's nearly $38,000 in additional annualized profits!

Guests Respond Positively To The Pricing Change

As if increased revenue wasn't enough of a success story, Dry Falls' careful positioning of their new pricing avoided any negative feedback from guests. The brewery made clear signage in two highly trafficked areas of the taproom and were honest with inquiring guests.

"We had a decision to make. Do we go up a dollar per pint? Or 30 cents per pint so you can use your credit card?" Jeff Golliher, co-owner, said. Something had to give with Dry Falls' increasing costs, and the team agreed charging for payment processing was better for guests than simply raising menu prices all around.

Both Jeff Golliher and his son Evan note that in the southern Asheville area, convenience fees and cash discounting are becoming more popular among other local businesses. "It's normal at this point," Evan says, referring to businesses recovering payment processing fees.

Whether it's the thoughtful signage or the trending cost optimization strategies surrounding them, data shows credit card usage remains the same at Dry Falls which proves zero impact on consumer behavior.

Jeff and Evan are so confident in the effectiveness of Arryved's Dual Pricing Program that they're planning ahead for a bright future. "We're able to put more money back into the business to continue to expand and grow our business," Jeff shares.

With almost $38k in additional profits predicted for Dry Falls in the coming year, the Gollihers plan to buy a new boiler, more cold storage, and distribution.