Price

“Price is also one of the most flexible marketing mix elements.” (Armstrong, Gary, Philip Kotler. Marketing: An Introduction, 10th Edition. Pearson Learning Solutions, 01/2010. VitalSource Bookshelf Online.)

For the price of the olive chips product is one that I have contemplated over many times. I see many prices on chips varying from high prices at $5.00 to low prices at $1.50. I wanted a good middle price to entice customers to choose this product over something entirely expensive and something cheap. Doing a bit of research, I have learned that products that are good for you are incredibly expensive but a bit out of the range of most customers. While prices at a low $1.50 may not be good for the customer but are affordable for just about everybody. In the settings of a bar I wanted to not only grab the customer with a design or colors that would stand out from other snacks but a price that would not make them think twice about buying the product. From reading the book I see that price can be flexible and I know whatever price I set my product at will fluctuate over time and sales. A nice

Little niche or price I feel is right for this product would be about $3.50.  There are chips that come in large backs that range around that price but I’m not thinking of making a large bag and filling the it with the product. This product has a gluten free side to it and although it is a snack, it should not be priced so low for the healthy aspects of the chips.

“Customer perceptions of the product’s value set the ceiling for prices. If customers perceive that the price is greater than the product’s value, they will not buy the product.” (Armstrong, Gary, Philip Kotler. Marketing: An Introduction, 10th Edition. Pearson Learning Solutions, 01/2010. VitalSource Bookshelf Online.)