“If customers perceive that the price is greater than the product’s value, they will not buy the product. Product costs set the floor for prices. If the company prices the product below its costs, company profits will suffer. In setting its price between these two extremes, the company must consider a number of other internal and external factors, including competitors’ strategies and prices, the company’s overall marketing strategy and mix, and the nature of the market and demand." (Marketing: An Introduction, Armstrong & Kotler, Ch. 9, Pg. 5)
The two most important ingredients for our burgers are the soy patties and the buns. For patties we will be using Boca Original Vegan Burgers. A box of 16 patties at Sam's Club costs $9.77 therefore, each separate patty costs about 61 cents. For buns we will use Arnold Wheat Sandwich Thins which cost $3.98 for 16 at Sam's Club so around 25 cents per pair. The drinks are only a dollar, and the cup cakes fifty cents. I estimate a 75 cent profit per meal.I feel a reasonable price for the burger, cake, and tea would be $3. Good for the Veggie Van and our customers!
"For most purchases, consumers don’t have all the skill or information they need to figure out whether they are paying a good price. They don’t have the time, ability, or inclination to research different brands or stores, compare prices, and get the best deals. Instead, they may rely on certain cues that signal whether a price is high or low. Interestingly, such pricing cues are often provided by sellers, in the form of sales signs, price-matching guarantees, loss-leader pricing, and other helpful hints."(Marketing: An Introduction, Armstrong & Kotler, Ch. 9, Pg. 42)
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