creative pricing

If you live in Manhattan, you've probably shopped at Eli's. 

Inspired by the food halls of Europe, Eli's offers all kinds of specialty foods, as well as baked goods, prepared meals, packaged items, their own brands, and everything in between. Eli's products are generally excellent.

When I was on the Cape, I bought a cranberry loaf at Maison Villatte, a French Bakery on Main Street in Falmouth. It costs about $6, and is indescribably delicious.  I've been looking for the same here, and think maybe Eli's will carry it.

Eli's is near me, but I rarely shop there. I imagine their pricing strategy goes something like this.

Owner:  Everyone (addressing his store managers), listen up.  How much do you think we can get by charging for this bottle of ketchup?

Manager Al:  I dunno. They're selling it at D'Agostino for $3.99.

Owner:  Okay, so let's try $5.99 and see how it goes. I think a 50% mark-up is fine; most of our customers probably wouldn't step foot in a D'Agostino.

Next we have this small fruit salad. Fairway is selling something similar for $5.

Manager Bob: Ya, but everyone knows our fruits are fresher than Fairways. Let's try to double the price on this and ask $10.

Manager Chuck:  Gee, I don't know Bob. $10 seems a little high for that.  What about half way, say $7.50.

Owner:  I agree guys, $10 does sound high. But hey, let's try it, We can always lower the price later if it doesn’t sell.

Remember when we priced those small tangerines or tangelos or whatever the hell they were at  $15.99 a pound and people bought them?

Al, Bob and Chuck: (big smiles all around).

I go to Eli's today and ask if they sell cranberry loaves. They do. YES! I'm directed to the homemade bread section.

And guess what? I find them.. They don't look quite as good as the crusty baguette loaf at Maison Villatte, but Eli's would definitely be worth a try.

Until I see this:

$16.95 for a full loaf? I'll wait 'til I'm back on the Cape.