'Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements. Unlike product features and channel commitments, prices can be changed quickly. At the same time, pricing is the number-one problem facing many marketing executives, and many companies do not handle pricing well. Some managers view pricing as a big headache, preferring instead to focus on the other marketing mix elements. However, smart managers treat pricing as a key strategic tool for creating and capturing customer value."(Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing Pg. 275)
Pricing is very important for this brand we have two different prices that we will be running with in the market. The first price is geared towards the everyday consumer which is $3.00 for a 11 Oz bag of peanuts, this is a nice sized portion at a great price. That will be distributed to different grocery stores as well as small retailers for the everyday on the go consumer. The second price for the same size bag of peanuts goes for $5.00 and this will be distributed to casinos and other late night adult spots, in these places the consumer wont mind spending a couple extra dollars for the snack. With the difference of the prices being so close it shouldn't push the customer away form wanting it at that particular time. Managing the price seems to be one of the hardest parts of creating a product because of the competition in the market, you dont want to make it so cheap that it costs more to produce, and you dont want to make it to expensive that it gets looked over and other products are purchsaed. Keeping the quality high and the price average for its size will drive consumers to go with our specialty snack.
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