Something to think about: Size vs Price


Well, inflation is here; it's a fact that prices are going up. Here is something for you to consider. This is something that all your suppliers are thinking long and hard about. Here is what they are doing about it.

Let's say there is a parcel of 36 cans for 18 dollars or 50 cents each.

Such bulk packing is commonly used to sell many different items, e.g. gift cards, dog food etc. Many suppliers and retailers often put together items to make their own bulk parcels.

Now you sell these 36 at $18 with a unit price of $0.50. There is a price rise of 10 cents, so now the unit price requires you to sell at $0.60. This makes the price for this parcel $21.60, which rounded up to $22 or, if you are being sophisticated, to $21.99. Nothing we can do about it. It's the new price.

Often where the market and suppliers set the prices and packet sizes, but sometimes people have flexibility. If so, they have three choices.

1) Reduce the packet number and sell the new packet at the old price.
2) Keep selling the same packet but at a dearer price.
3) A combination of both, change the package size and increase the unit price, so it is a new item at a new price point.

Research shows the consumer prefers the last combination; here is a detailed explanation for you to chew over.

The end result, we see packets with new sizes coming out.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.