The $5 pizza restaurant in my neighborhood closed down yesterday, much to the dismay of my 13-year-old son.
That’s right, for just $5 you could get a large pepperoni, sausage or cheese pizza. It wouldn’t taste that great, but two pizzas for $10 could feed our family on lazy nights when no one felt like cooking. You know, like Fridays.
Anyway, that place closed earlier this week. I was surprised because it always seemed fairly busy. But this is a tough economy, and more than a few businesses that I thought were successful are long gone from our community.
The pizza place, though, reminds me a bit of today’s housing market. Really. A few months back, the owners tried to bump the price of those large cheese, sausage and pepperoni pizzas to $7.99. We stopped going there. So did a lot of other people, I suspect, because soon enough the price fell back down to $5. Cheap pizza, it turns out, isn’t like gas or cigarettes. People won’t buy it at any price you randomly throw on them.
I remember telling my wife that the pizzas weren’t bad for $5, but they weren’t good at all for $7.99.
That’s how it is for housing today. You might want to price your lovely bungalow or Victorian or Cape Cod at $300,000. But if people won’t buy it for more than $220,000, you really have little choice. You either drop the price down to what people are willing to pay or you go out of business — metaphorically, at least.
As far as our pizza Fridays? I went to the supermarket located right across a parking lot from the former pizza place and bought two frozen pizzas for just over $10. And, yes, when I got back to my car I did feel a little glum looking at the empty pizza place. Pizza restaurants should never close.