Marketing Mix - Price

The tricky part about selling an item to individuals is how do you get them to pay what you want them to pay. How does a company make a profit, but make the customer believe they are getting value for their dollar. “The price the company charges will fall somewhere between one that is too high to produce any demand and one that is too low to produce a profit.”(Marketing an Introduction, Armstrong/Kotler, pg. 5 of 59) There requires a happy medium when pricing an item, a way to keep the company above water while giving the customer value. To achieve this idea of value, “…pricing starts with customers and their perceptions of value.” (Marketing an Introduction, Armstrong/Kotler, pg. 5 of 59) Perception of value is the key, the customer must feel that they are getting the most bang for their buck, and also want to do it again. It is important that the customer feel that they are getting a “deal” or even that they are taking advantage of the seller. Our company will price the Febreeze Sport Extreme Odor Eliminator at $5.76 which is a profitable sell price for the item. We believe this price point will allow the customer to feel that they are getting value for their money and will create profit for the company.