Pricing

Current stated prices of our products are as follows: Honey | Rs. 300 per Kg (less than brands) | Vegetables | +20% of market rate | Mushroom | Rs.300 per Kg | Banana | +20% of market rate | Egg | Rs.7 |

As we can see from the spread of prices above and below the competitive market average, there is a need for a uniform pricing strategy.
The first step is to realize that our target market is not the same as that of regular fruits and vegetables and hence we should not compare ourselves to the generic market price of fertilizer grown crops. As described in the demographic analysis section, the kind of people walking into our stores would be: 1) Health conscious: willing to pay a premium for safety and nutritional benefits 2) Environmentally conscious: eager to pay a premium in order to save nature 3) Socio-economically conscious: eager to pay a premium to promote sustainable development
Thus our target market will have a very inelastic demand curve, thus allowing us to ignore competition and setting our own price.
Minimum Price Level
Let us start formulating our own price by first determining the minimum that can be sustainably charged. There are two key things that we should be focusing on: 1) Costs 2) Objectives

Costs
The National Center for Appropriate Technology, USA interviewed several experts in the field of pricing and determined that “number-one factor in effective pricing is quantifying (your) costs and selling above those costs.” (Post, 7) Factors apart from labour and cost of inputs that are often not delineated accurately are: * operations * overheads * equipment * depreciation * marketing costs
This webinar by Mary Peabody (University of Vermont, Director of the Women’s Agricultural Network) offers a detailed guide to cost identification and pricing survival tips: