The production cost of Rocky Mountain mineral water is around 2 cents, mainly because glass bottles are expensive.
Adding transportation costs to cities like Los Angeles and San Francisco on the West Coast, the cost would be about 3 cents. If transported to East Coast cities like New York, the cost might reach 6 cents.
"What do you think the price should be?" Hardy asked the group.
Andy thought for a moment, "I think 10 cents is appropriate."
"8 cents."
"7 cents."
"10 cents."
No one suggested a price higher than 10 cents.
Hardy shook his head. "Coca Cola now sells 30 million bottles a year at a price of 5 cents each, and beer is 10 cents. How many people do you think would be willing to buy a bottle of water for the price of a bottle of Coke or beer?"
"This is why those few mineral water brands don't sell well. They are positioned incorrectly, treating mineral water as a regular beverage," Hardy explained.
