Monday, May 23, 2016

Price

"When customers buy a product, they exchange something of value (the price) in order to get something of value (the benefits of having or using the product)."


Original Product
Price
Walkers Cheese and Onion Crisps 32.5g
$1.1o
Twiglets Pretzels 150g
$2.49
Mr. Trotter’s Pork Crackling 60g
$2.25
KP Dry Roasted Nuts 100g
$1.92
Beer Cheekies will be sold in a 200g sized bag which is a one or two serving size, depending on the customer.


Beer Cheekies Product
Price
Walkers Cheese and Onion Crisps 25g
$0.85
Twiglets Pretzels 75g
$1.25
Mr. Trotter’s Pork Crackling 25g
$0.94
KP Dry Roasted Nuts 75g
$1.44
             Total= $4.48


Like every other business I need to make a profit. By doing so I will take a 10% profit from each bag sold a ($0.45) profit. This leads to an overall price of $4.93 per bag, or in the United Kingdon the total price would be £ 3.46. "this amount would be too high a price in poor countries and not high enough in rich ones."


"More importantly, as a part of a company’s overall value proposition, price plays a key role in creating customer value and building customer relationships."

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