Pricing Strategy For Wine In Today's Marketplace
The pricing strategy used for marketing wines should be a function of the demand for wine. Consumers are not directly concerned with the cost structure inherent in producing a commodity they are interested in purchasing. However, the manager of the winery is concerned with the underlying profits and must therefore consider cost alterations in their marketing strategy. Especially to the extent that increased costs influence the price of all wines, the decision-maker attempting to price wines should reflect the alterations in cost resulting from different technological and economic conditions.