Lockdown can make you do strange things…
What can I say – I’m interested in pricing…
So when Wrigley’s released new versions of their ‘Eclipse’ mints in Australia I took notice. Many will be familiar with the original 34g container – kudos due on the iconic metal tin packaging design. However we are now presented with a new ‘mini’ at 17g and a ‘maxi’ at 40g… this is where things start getting interesting.
Now before anyone gets too hung-up on the price-points I accept that there is actually a broad spread in the market which is only further complicated by the frequent ‘2-for-1’ pricing strategy but accept my pricing as an average observed.
So… using the original as a benchmark… I can now buy a mini which is 50% of the product volume… for 12% discount? Or I can buy a maxi which is 15% addition in volume for a 35% increase in price… Confused? You should be – that’s the plan.
|# mints (avg)||24||47||55|
|unit cost @1.5c a mint||$0.36||$0.71||$0.83|
|assumed packaging @ 30% – 100% markup||$0.35||$0.39||$0.53|
|Assumed Cost (incl ohead)||$0.71||$1.10||$1.35|
|Margin @ POS||326.2%||237.4%||259.3%|
Let’s just call this a ‘back of the napkin’ exercise but some quick numbers seem to validate the approach – purchases on either side of the ‘original’ product appear to deliver superior returns.
Hey, you may find this mind numbing, but I find it interesting…