According to "Why Coke Cost A Nickle For 70 Years", a bottle of Coca-Cola had been cost at a nickel, 5 cents, for 70 years since 1886 because of at least 2 reason: advertisement of price and vending machine. The giant advertising boards of 5-cents coke were located everywhere in order to aware every people that they can buy coke at 5-cents because its president had just got a fixed price for selling syrub, so keeping a low price in retails would make people buy more amount of coke then he got more money. Moreover, old vending machine required one coins for a piece; therefore, if price was increased to 10 cents, it would seem too much. Although, price of coke was fixed for a long time, it helps Coke be popular today.
In my opinion, although all companys want to increase price of product, it is difficult to do because of a improtant factor that is their competitors. If competitors keep selling at constant price while your company increases price of procduct without increasing in quality or maybe increase, most customers who are very concernd about price may switch to other bands so you will not get any advantages from this action instead you will still be old price. For example, Lay, potato crisp, used to raise price from 5 bahts to 6 bahts, just a few rise, after about 1 year it return to set price at 5 baht by reducing a quantity instead.
I wish we will fix the price of gold which has been increasing continuously.However, it is difficult to judge when price of raw materials is increasing and then it leads the others products' price increasing. If we fix the price of the raw materials, everyone producing raw materials will face a lose. Sometime some products prices are freely judged.
ReplyDeleteI think in order to increase the price of any product the company have to make its products distinguish from those of the competitors. Also, the company may target different groups of customer in order to give them a different experience.
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