The price of the Chocolate Fat Pig will be 92 cent. The reason of the odd price is to have the costumer spend about a dollar including tax in most states. The Chocolate Fat Pig Cooperation has done the research about the average price that a 16-24 year old will pay for a piece of candy. The Chocolate Fat Pig Cooperation is looking to undercut the competition. Paying 92 for a 3.5 oz. of candy is price competitive. “Costs set the floor for price but the goal isn’t always to minimize costs. In fact, many firms invest in higher costs so that they can claim higher prices and margins (think about Steinway pianos). The key is to manage the spread between costs and prices—how much the company makes for the customer value it delivers.”
"In setting prices, the company must also consider competitors’ prices. No matter what price it charges—high, low, or in between—the company must be certain to give customers superior value for that price. Kotler, Gary Armstrong and Philip. Marketing: An Introduction for Education Management Corporation.16pg”
The foil wrapper will cost 5 cents.
The chocolate and bacon mixed will 10 cents.
The distribution will cost 5 cents per candy bar.
The total cost to produce one Chocolate Fat Pig. Will cost 25 cents to make.
For a total profit of 60 cent per candy bar.
A box of Chocolate Fat Pigs will consist of 15 candy bars per box.
“If you focus on what customers want and build a relationship, they will allow you to make money. Kotler, Gary Armstrong and Philip. Marketing: An Introduction for Education Management Corporation. pg1” the Chocolate Fat Pig Cooperation has done the research.
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