Price

We will start out with pricing our vodka at $49.99 and see how well that goes with consumers. We researched and saw that our competitions prices were around $29.99. We did raise the price twenty dollars but we wanted to use price skimming to begin with. “Companies often use price skimming for new products when the product is perceived by the target market as having unique advantages. Often companies will use skimming and then lower prices over time.” (Lamb, Hair, McDaniel, MKTG, pg279) We would also like to use prestige pricing as well. “Prestige pricing is charging a high price to help promote a high-quality image. A successful prestige pricing strategy requires a retail price that is reasonably consistent with consumers’ expectations.” (Lamb, Hair, McDaniel, MKTG, pg275) Price is elastic though and we would like to see what works out the best.