Today, We are going to talk about the pricing of mineral water bottles. Actually, when you start the plant everybody worried about the fears of competition in the market.
So, that is why there is always a question of what to go out of pricing.
How should we keep the pricing?
If they keep pricing low what will happen?If keep High what will happen?
so been the answer to this is don’t be to fears of competitive to compete with the lowest pricing and at the same time don’t think that I should keep my pricing very high.
wherever you want to go if you see for example there are actually three categories in the market.
Type A Sellers,
Type B Selleres and Type C Selleres.
Type A Sellers is the brand that is the national level brand.
Type B sellers can be Called brand but local level brand,
and, Type C are no brands.
The C type Of people are going down and compete with the low because ultimately, the price which you are going to get is sold 20rs.to a packaged drinking water bottle.
there you have don’t too much scope. you have scope to give the pricing to the distributor.
Type A people give typically a 50% margin to the distributor.
Type B People Give 60% margin and Type C People Give 70%.
So, don’t try to be given immediately 75% and grabbing the market.
similarly, If you go for very high pricing then there is very difficult for you to justify your pricing and survive in the market.
So, what is the right strategy?
Start with little above after seeing the market. start branding yourself.give a 3-year timeline and then gradually raise to your level.
once, you become a local brand for say 3-5 years then 5-7 years you become a national brand also.
So, keep your packaging drinking water business healthy.