Week 8: Price... Final

“The objective is to maximize profits, not sales. Therefore, the company must weigh the benefits of providing higher levels of service against the costs. Some companies offer less service than their competitors and charge a lower price. Other companies offer more service and charge higher prices to cover higher costs. (Marketing: An Introduction. Armstrong/Kotler pg. 330) There are two different price rates for "LIVE" vodka. If you are purchasing "LIVE" for the first time, the package for the beginner would be, the tall lightly frosted 750ml bottle and its chilled plate with plug in cord starting at 49.99. The reason being slightly higher then a regular or replacement bottle is due to the chill plate. Keep in mind the replacement bottle is ten dollars cheaper at 39.99 but does not come with the chill plate to keep the vodka chill to the serve. We do realize this is a slightly higher price vodka then most you can buy in a local grocery store but we feel strongly on our product and know once the consumer taste the difference in 'LIVE" then any other vodka they well come back for more. "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."(Marketing: An Introduction. Armstrong/Kotler pg. 276)