Marketing Mix: Price

"Price is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service." (Marketing: An Introduction. Armstrong/Kotler pg 275). Rock-It Vodka understands that how we set our price will directly affect how well we do in the marketplace, especially in such a tight economy.  Understanding that price is not just what the customers are paying for, but actually the value of our product in their eyes.  Organic vodkas like our own range from an 18 dollar price tag and up to all the way up to 80 dollars. As a goal of our we are positioning ourselves as an affordable drink with the flavor of a very pricy vodka.  Our list price will be  starting at $29.99 for a 1.75 liter bottle of Rock-It Vodka.  This will enable us to fit into the wide range of mid-priced vodkas available and to offer something more to the customers that the other companies cannot. "Companies bringing out a new product face the challenge of setting prices for the first time. They can choose between two broad strategies: market-skimming pricing and market-penetration pricing."(Marketing: An Introduction. Armstrong/Kotler pg 285).  Our price will put us into the market-penetration method of pricing, and in order to create a culture of passionate people our company cannot overcharge customers wrongfully.  Once our product has released we plan to enact a 're-recycling' program for our unique bottles. Once a customer has finished their bottle they can ship it back to our address and we will, in return send them a voucher for five dollars off their next bottle, and this deal can continue every time the customer buys a bottle (even if the bottle breaks during shipping). This will create high customer value and also for our target market it will stimulate their urge to do good for the planet.