by The Chillin' Station » Sun Jul 24, 2011 4:34 am
What ever prices you settle on, just be cautious of the smart consumer. For instance, if you sell an 8 oz cup for $1.00, a 12 oz for $2.00 and a 16 oz for $3.00 the customer may not see the value in the larger cup going up $1 and only 4 extra ounces. They may get smart and order (2) 8 oz cups paying you only $2.00 and getting 16 ozs, two cups, two straws, two spoons, instead of paying you $3.00 for a 16oz cup. Basic math working against you. Some vendors will choose to eliminate a middle size or medium and offer only a small and large...thereby committing the customer to make the choice of serving size of ..."that little cup is not enough." Then you can slap a $3 or $2.50 price on a 12oz cup (that's too small for them) and $4 on a 20oz cup (the one you really want to sell). The value is very evident now and most customers will go for the $4 cup...getting an extra 8 ounces for just a dollar, versus 4ozs. Buying two smalls (12oz) won't save them money. Not to mention, you only have to stock 2 different size cups. But pricing is like everyone here has stated ...Location...location...location! Bottomline: What is the preceived value of your product to your customers and what are they comfortable and willing to pay?