Price

“To estimate sales, the company might look at the sales history of similar products and conduct market surveys. It can then estimate minimum and maximum sales to assess the range of risk. After preparing the sales forecast, management can estimate the expected costs and profits for the product, including marketing, R&D, operations, accounting, and finance costs. The company then uses the sales and costs figures to analyze the new product’s financial attractiveness.” (Marketing: An Introduction for Education Management Corporation, p.251).

“Consumers will base their judgments of a product’s value on the prices that competitors charge for similar products…. If consumers perceive that the company’s product or service provides greater value, the company can charge a higher price. If consumers perceive less value relative to competing products, the company must either charge a lower price or change customer perceptions to justify a higher price.” (Marketing: An Introduction for Education Management Corporation, p.280).

There were a few drinks that I found similar to Elegance Vodka that I was able to research what price I should place on Elegance.  They fell into the factors of reaching out to every day women. These women are the ones who work hard for everyone around them and seldom themselves. These women don’t necessarily have the high paying jobs, but are striving hard to provide for their family. Therefore, the price that I have set is $25. To some this may be a high price, but worth it in the end. To others it may be the perfect price to have a feeling of elegance. I want it to be easily available to the hard working woman, mother, and daughter.