Price

"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, p275) I plan on the price-point of my product to be $4.99 for 3oz. The target market is the up-scale higher end luxury bar. In a place where customers will routinely spend $15-20 on a drink, and not even worry about the price, I don’t want the value of my product to seem like it is just a cheap snack and not worth the customer’s time and money. "In the end, the customer will decide whether a product’s price is right. Pricing decisions, like other marketing mix decisions, must start with customer value." (Marketing: An Introduction, Armstrong & Kotler, p275) I also want to insure that even though the customer doesn’t mind paying $20 for a drink, that I don’t price my snacks at too high of a level. There is a limit for how much people will pay for snacks, even at high-end bars.