Price

Prices, prices, prices, isn’t this the most important thing in business right now?  With our economy the way it is right now everybody is looking for the best deal and the biggest bargain.  People are looking for that happy hour or two for one deal at any bar or restaurant.  Applebee’s and their two for 20 menu seems to be leading the way in this regard.  I’m not saying that our beer is going to be cheap, after doing the research on prices for ingredients on all the different recipes I’ve determined that every beer needs to be at least four dollars to make come out even.  Of course we don’t want to come out even we want to make money, so obviously we are going to have to charge more.  We will have two different sizes of mugs, 16 oz and 22 oz, which is typical for most restaurants.  The 16 will cost five dollars and the 22 seven, and after researching prices in other bars I have found that this is definitely a reasonable price especially for home made beer. To deliver on its value proposition, the firm must first create a need-satisfying market offering (product). It must decide how much it will charge for the offering (price) and how it will make the offering available to target consumers (place). Finally, it must communicate with target customers about the offering and persuade them of its merits (promotion). (Marketing An Introduction, Armstrong/Kotler,13).  Competition will always seem to drive down the amount that you can charge for you product though. In these days of intense price competition, service marketers often complain about the difficulty of differentiating their services from those of competitors. To the extent that customers view the services of different providers as similar, they care less about the provider than the price. (Marketing An Introduction, Armstrong/Kotler,226).  We can very well charge a few dollars more than any other place unless our product is vastly superior to what they have to offer.