Price

“Price is the amount of money customers must pay to obtain the product.” (Marketing An Introduction, Gary Armstrong, pg. 54) Price is also a big determining factor of whether or not someone will buy your product. Too high of a price and people will simply pass on your product. Too low, and the business will struggle to keep up with manufacturing costs. Needless to say, the perfect balance must be found. “Rather than offering high quality at a high price, or lesser quality at very low prices, marketers in all industries are looking for ways to offer today’s more financially cautious buyers greater value—just the right combination of product quality and good service at a fair price.” (Marketing An Introduction, Gary Armstrong, pg. 79) Considering that the product, an 8oz bag with a vinegar-based dip packet, will be served initially in bars, the price has to stay competitive. I decided to price my snack [per unit] at an even $1.00. This is taking into consideration the fact that the bar will most probably mark it up to make a profit. By making it $1.00 for the bar, finances can easily be tracked with the exception of taxes. If I give the product to the bar for $1, they can easily mark it up another .50-.75 cents to make their profit. At the same time, most people at the bar don’t want to hold on to change or coins and therefore will probably give the bar $2 even. That keeps the bar happy and the consumer doesn’t break bank over bar snacks. The only variable we would have to monitor, due to lack of experience in such an area, would be the cost to make the product. As long as we can keep manufacturing low enough, which I think we can consider the simplistic packaging, the company can still net profit. The company would make more money when branching off to bigger clients with bigger orders, specifically the big box stores. We would have to re-evaluate costs and pricing to maximize profit.