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.

minioriginalmaxi
size (g)173440
cost AUD$2.30$2.60$3.50
# mints (avg)244755
$/mint$0.10$0.06$0.06
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 @ POS326.2%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…

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