Pricing

Lemuria Essential Oil Pendant (with 1oz vile):  $19.95 
Lemuria Essential Oil 1 oz vile: 9.95   
Lemuria Body Oil 4oz bottle: 12.95

The pricing strategy used will be cost plus mark-up. This is the opposite of competitive pricing. Instead of looking at the market, we will look at our own cost structure. Decide the profit we want to make and add it to our costs to determine selling price. Using this method will assure a certain per-unit margin, and it may also result in prices that are out-of-line with customer expectations, with similar products, however, we will be marketing this as a specialty item, and do not want our product to be considered a bargain item. Price will reflect the quality. “Customer value is not simply a matter of high quality. A high-quality product that is available only at a high price will not be perceived as a good value, nor will bare-bones service or low-quality goods selling for a low price. Instead, customers value goods and services that are of the quality they expect and that are sold at prices they are willing to pay.” (MKTG, Lamb Hair McDaniel. Pg.7)
Lemuria Body Oil and Lemuria Essential Oil can be sold separately, however, we will be marketing the two products together as a special package, known as ‘bundling’. The price together will represent more value than buying each item individually. “Price bundling is marketing two or more products in a single package for a special price. Price bundling can stimulate demand for the bundled items if the target market perceives the price as a good value.”(Lamb Hair. Pg.287) Bundling can also stimulate demand during a recession, if features are added to a bundle, consumers may perceive the offering aw having greater value. (MKTG, Lamb Hair McDaniel. Pg. 290)