maximizing profit versus building brand/revenues:
"If sales were as good as Hangover Joe's says they were from their website at just under $10 a bag, I am wondering what the sale price should be at the festival. It was suggested that I sell for $8 a bag. Would festival goers buy at $9 a bag?"
every festival is different and it depends on the socioeconomics of those in attendance but at the infancy of the brand - I would suggest pricing it in line with the format of what is currently in the c-stores.
if you go "gourmet" - you automatically eliminate well over half of the audience as they either think they cant afford gourmet or dont want to.
if you price a "premium" product in line with traditional offerings - people feel like they are getting "something for nothing" and can be more easily compelled to purchase and try. then - if they notice the difference (taste, quality, variety - real or perceived) they will become a repeat customer). if they do not notice a significant difference - then they may still be compelled to choose this over the competition as all beef is sourced in the US (which can be quite compelling even if it DOESNT taste as good as others - i sure as hell am not eating any meat product originating from China or pretty much anything else except mandarin oranges).
while festival goers do expect to pay a certain premium for products as part of the experience - one also has to consider brand building and getting the product in front of the consumer. i would suggesting highly discounting it to build the brand as one cheapens the image/quality but if priced at the same level as what they "normally" expect to pay at the beef jerky command center at their local, favorite c-store - then you have a real hook to reel them in and start the conversation: why the products are different, the number of varieties, a little about the company, the other products they do (shots, chips), and most importantly for you - where they can find all of these products in their/your area.
Jack Links and Slim Jim seem to be the most prominent brands in my area. Others are coming on strong and I have noticed plenty of "gourmet" brands starting to hit the shelves. However, they are priced WAY out of teh market and I seriously doubt they will gain traction at those price points to remain on the shelf. You will be fighting to stay on the shelf as much as building the brand early on so keep that in mind when considering where to price. You may make $0.50/1.00 less a bag but what will be the return on that investment (via discount) for repeat customers/building a much larger customer base...?
if you have a current customer that you know very well (someone that helped get you going/gave you access to space in their store), invite them to share the booth with you. not only will it be a "thank you" to them for helping you and the new brand - but also gives them a chance to see how people respond to these products in teh public and will help them position them more prominently in the future and/or talk to their network about how the products are selling/resonating with consumers.
good luck. if it wasnt Labor Day weekend - I would come see you. Last "big" summer weekend in Michigan and the wife goes back to school (teaching) following week so I always stay home.
feel free to email me if you have further questions/ideas.
"If sales were as good as Hangover Joe's says they were from their website at just under $10 a bag, I am wondering what the sale price should be at the festival. It was suggested that I sell for $8 a bag. Would festival goers buy at $9 a bag?"
every festival is different and it depends on the socioeconomics of those in attendance but at the infancy of the brand - I would suggest pricing it in line with the format of what is currently in the c-stores.
if you go "gourmet" - you automatically eliminate well over half of the audience as they either think they cant afford gourmet or dont want to.
if you price a "premium" product in line with traditional offerings - people feel like they are getting "something for nothing" and can be more easily compelled to purchase and try. then - if they notice the difference (taste, quality, variety - real or perceived) they will become a repeat customer). if they do not notice a significant difference - then they may still be compelled to choose this over the competition as all beef is sourced in the US (which can be quite compelling even if it DOESNT taste as good as others - i sure as hell am not eating any meat product originating from China or pretty much anything else except mandarin oranges).
while festival goers do expect to pay a certain premium for products as part of the experience - one also has to consider brand building and getting the product in front of the consumer. i would suggesting highly discounting it to build the brand as one cheapens the image/quality but if priced at the same level as what they "normally" expect to pay at the beef jerky command center at their local, favorite c-store - then you have a real hook to reel them in and start the conversation: why the products are different, the number of varieties, a little about the company, the other products they do (shots, chips), and most importantly for you - where they can find all of these products in their/your area.
Jack Links and Slim Jim seem to be the most prominent brands in my area. Others are coming on strong and I have noticed plenty of "gourmet" brands starting to hit the shelves. However, they are priced WAY out of teh market and I seriously doubt they will gain traction at those price points to remain on the shelf. You will be fighting to stay on the shelf as much as building the brand early on so keep that in mind when considering where to price. You may make $0.50/1.00 less a bag but what will be the return on that investment (via discount) for repeat customers/building a much larger customer base...?
if you have a current customer that you know very well (someone that helped get you going/gave you access to space in their store), invite them to share the booth with you. not only will it be a "thank you" to them for helping you and the new brand - but also gives them a chance to see how people respond to these products in teh public and will help them position them more prominently in the future and/or talk to their network about how the products are selling/resonating with consumers.
good luck. if it wasnt Labor Day weekend - I would come see you. Last "big" summer weekend in Michigan and the wife goes back to school (teaching) following week so I always stay home.
feel free to email me if you have further questions/ideas.
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