Final Project: Pricing

Price is important matter to our company and that is why we want to start out in Los Angeles. We don’t want our drinks to represent “too pricy”. “Price: The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.” (Marketing An Introduction Armstrong/Kotler Chapter 9 Pg. 4) “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.” (Marketing An Introduction Armstrong/Kotler Chapter 9 Pg. 4) Drinks in Los Angeles for beers and fruity beers is about five, six dollars, we want our beers to not represent a cheap drink so we are happy with the price and hopefully with the experience the customers will see it as value and not worry about the price. That is what most important in pricing, is that customers don’t have to worry about it or care because they like the experience they have; they see value in buying it. That is what we want to see for our product, otherwise the price doesn’t really represent anything because we won’t make any money if our customers can’t trust our brand and think that the value and experience is worth it.