Monday, August 30, 2010

Burrito Pricing

I was at a Mexican Market in Fontana and I was surprised at the pricing at $6.99

A Pork Burrito cost more than a local Mexican Restaurantin Rowland Heights that is $5.99

And Chipotle is about the same price.

Why the same price at a market that is aimed at a lower income group based on its location. The owners are very careful about where they site their markets.

My guess is its within a price range that their customers feel comfortable paying for a burrito. Even though logically I would expect a lower price at the market. And the market ownership has probably tested the pricing to find out the highest they can sell for. Pricing is a bit of a black box science and without testing its just a guess.

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