Arizona Iced Tea founder on why he's never raised the 99-cent price
What strategy does Arizona use to maintain its product price?
Arizona Iced Tea maintains its 99-cent price by employing cost-cutting strategies such as using thinner cans, efficient shipping methods, and minimal marketing efforts. The company also benefits from a diverse product portfolio, which helps offset potential losses from its low-priced iced tea. Additionally, Arizona prioritizes customer satisfaction and loyalty by keeping prices consistent, even in the face of inflation and rising production costs.
How long has Arizona Iced Tea been priced at 99 cents?
Arizona Iced Tea has maintained its price at 99 cents for 32 years. Don Vultaggio, the founder of the company, has kept the price consistent since the launch of the product in 1992. Despite inflation and rising costs, Vultaggio is committed to providing an affordable option for consumers.
How do Arizona's prices compare to its competitors?
Arizona's prices are lower compared to its competitors. For example, while Arizona's 23-ounce iced tea cans are sold for 99 cents, similar products from competitors are priced higher. Snapple, which used to be priced at 99 cents, is now sold for $1.79, while Gold Peak and Pure Leaf cost $1.99 and $2.09 respectively.