Final Project: Price

Chocolate Boosters (pack of 30 pieces)$24.99

Pricing can be a tricky aspect of introducing a new product. It is even harder when your product is just a different version of an existing product.  You never want the consumer to say “why would I pay this price, when this one is cheaper and it’s nearly the same thing?”  That can be damaging.  My first instinct is to price Chocolate Boosters a little more than similar products at first, so the consumer knows the quality and value of it.   Companies should be very wary of risking their brands’ perceived quality by resorting to deep and frequent price cuts. Some discounting is unavoidable in a tough economy and consumers have come to expect it. (Armstrong/Kotler, Marketing, pg 43) I feel I will keep the price of consistent, because the quality and value doesn’t change, why should the price.  If by some reason the market fluctuates, I may follow the market with my prices. If Chocolate Boosters are selling off the shelf, of course I will adjust pricing accordingly.  Dynamic pricing makes sense in many contexts—it adjusts prices according to market forces, and it often works to the benefit of the customer. But marketers need to be careful not to use dynamic pricing to take advantage of certain customer groups, damaging important customer relationships. (Armstrong/Kotler, Marketing, pg, 47)  Pricing will be a trial and error process.  I want to find a perfect medium between a high price to generate a descent profit and the right price for what its worth and its value.