In many industries, having a somewhat higher price is part of establishing a quality image in the minds of those who buy and use the product. Companies which price their products based on costs will often miss this MBT Tembea Coffee,and hurt sales volume by having prices that are too low. How can you use price and non-price methods to enhance the sales and profits of your offerings?
In the 1970s, Kentucky Fried Chicken usually offered two kinds of chicken, one produced according to Colonel Sanders' original recipe and the other made like the typical "crispy" fried chicken found throughout the southern United States. Since the crispy chicken had been offered, both products had been priced the same. The concept behind this approach was that the company's competitors usually sold their crispy products at lower prices, and the less attention on the price differential the better.
Original recipe was actually less expensive to make than the crispy product. Colonel Sanders had designed his product well. He had designed the product to taste better and to be easier to prepare. Some people in the MBT Karani had been considering cutting the price on original recipe. This would lessen the price disparity with competitors.
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