I have to sell at Rs.20 ( as of today 🙏 )
How have you arrived at this cost ?
If you ask this question, the answer is " Because whole market does that ". Unlike other products, the Packaged Drinking Water Price in Indian Market is Rs. 20.
It's NOT regulated
But who says it's "the" price ? You can go below ( as Jio has done ) or you can surpass as well. It is not regulated that you SHOULD sell at Rs. 20.
Then Why no-one dares to do that ?
Fear of Rejection :-
Everyone feels that he will be rejected. And yes, possibilities are very high. As all others : The Big 3 : Bisleri, Kinley, Aquafina charge Rs. 20. If Aquafina, Kinley couldn't dare changing it , how can I ? : That's the fear in the mind.
Can I reverse the tradition ?
Why Not ? I remember referring to a case with Akio Morita, the SONY superman. In very initial days he reversed the tradition of increasing discounts with increased quantity. Rather he proposed different pricing for different sized lots. Some cases, more no. of lots attracted more price per lot. As it was NOT suitable to SONY.
So, It can't be Market Driven Always
Who says, it should be 20, always ? If it can come to Rs. 15, It can also go to Rs. 25, or can also come to Rs. 12. So far the cost per bottle ( 1 Ltr ) remains at 6.25; you can always keep that as a base price, and decide your ultimate selling price.
Further Strategies can be Decided
Once this fear is removed from your mind; you can always go further and do some out of box thinking. The easiest will be not going the Distributor way, which eats up your major chunk. Anyways, this is not a place to decide the exact strategy, but to explore the possibility of deciding a different price altogether.
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