Case study comparing the price of bananas through differnt retail locations and how the experience determines the price. Important for all businesses to understand!

Experience Marketing

Share this on

How Much are Your Bananas? – An Experience-Based, Pricing Model Case Study

Whether you are selling bananas, professional services, or manufactured goods, the client experience you create dictates the price that you can charge and your overall level of client satisfaction.

About a year or so ago, on my semi-daily visit to Starbucks, I noticed that they started selling bananas.  The cost was .90 each. This seemed pricey especially since bananas are available at every grocery store for quite a bit less. I began to notice that some mornings there were no bananas. When I asked why, they told me that on many of days, the bananas sell out early.

Starbucks also has cafés in many grocery stores in the Denver Metro area. The Starbucks in the Safeway near my office has a café, which also sells bananas. These bananas are .50 each. This is a savings of about 45%.  Curiously, they also sell bananas at this Safeway for .59 per pound, which translates to .22 per banana.

Starbucks does not promote any special qualities inherent in their bananas. They are not organic, they do not come which any special packaging, they do not promote that the proceeds help support any special cause, they are just simply bananas.

So, why would people pay .90 for a banana at Starbucks instead of grabbing one from home for only .22? The answer is...

Read this full article at Webolutions Blog

Return to Top and Content Summary