The Marketing Mix - Price - Business Studies

Magnificent Meringues - 2nd assessment blog post

How did you work out what price you were going to sell your product at? -

Our decision was based on the size and quantity of the product, we wanted to make sure the price was fair for the customers but also fair for us. We needed to decide on a price where it could make up our profit. We didn't want our product to be too cheap because maybe there wouldn't be much luck in making up our profit. Judging by the size and quantity I think we made a price that is fair for both sides.

How will you ensure that your product is worth the price you are asking people to pay? (quality control) - 

We will be ensuring this by putting effort into the style, but not only the style we want to also consider the smell and taste. When people are buying things they think about experience or appearance and size.  Our size is small but that is because we only want the size to be something you snack on. We are also adding whip cream this gives us more of a chance to get customers. Since most people like whip cream out of experience or popularity, we are also adding fruit to add color to make it look refreshing. Thinking about the price when we had tripled the ingredients of two eggs, 3/4 cup of vanilla essence, and 1 1/2 cups of caster sugar. All that had equaled to 30+ meringues. Selling each for 1$ is reasonable for both sides. We can create a profit and the customers would buy it considering the obvious details. 

What price is the other (B&E group/real-world business) charging for the same good? -

Local cafes in France usually sell their meringues for 2.90 Euros each, which is equivalent to $5.00 here in NZ. If you went to France and looked at those you would've found that cheap considering the style and quality referring to France's reputation with baking. Her in NZ we are not famous for baking so if we had sold ours for $5 that would be unreasonable. Because thinking about our size and what people think of it. Our style is simple yet elegant if you think about it meringues are famous here in NZ but some people think of meringue as a fancy dessert. Selling them at a dollar each will interest the customers, or surprise some of them, some people think meringue is hard to make, which will make them think we put a lot of effort into it. 

What else will you consider when it comes to the price of your product? - 

If I were buying the product I would most likely be carried by the smell, size, and style. I think that's all I would think about when I'm buying something. But a thing that I will always think about is the price. If I brought candy I normally buy a lollipop because they are 50c and seem cheap. If you compare them to our sweet dessert, in my opinion, I think it's a bonus a meringue with fruits and whip cream seems like a lot for just a dollar. 

The price of your product is one of the most important things you need to talk about, thinking about how many people will buy it. Price is one of the keys to open the door to a successful business.