The Pricing Of A Specialty Product Essay

1513 Words Jan 21st, 2016 7 Pages
The pricing of a speciality product is one of the most difficult in Switzerland. This is because of the expense of food items in the country. Many residents in Switzerland prefer to shop in surrounding countries to be able to save money and afford more food. In order to address this issue, my company is going to sell 1 bottle of maple syrup for the same amount the it would be sold for in Canada yet add on the cost of shipping to Switzerland. I have chosen this pricing strategy because it ensures that my company is able to sell 1 bottle of maple syrup at a more competitive price than other companies. This would also increase sales because rather than purchasing different brand of maple syrup from surrounding countries, consumers will choose to purchase it in Switzerland because they will see that it is cheapest in Swiss grocery stores. This strategy of penetration pricing on the sale of Canadian maple syrup in Switzerland should attract the most consumers compared to other pricing strategies which will help increase and maintain profits.

The pricing policy that my maple syrup company would use is psychological pricing because it ensures that products are sold at a cheap price and that the price helps in appealing customers towards the product. This is the best policy for Canadian made maple syrup because of the high prices of food in Switzerland and being able to provide a specialty food product at a very low and extremely competitive price would draw many customers towards…

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