Don’t you love pineapple in the summer? It’s juicy, fresh, delicious, and fairly inexpensive. That is, it’s inexpensive if you buy it at your local grocery store where it’s only a few dollars. Sounds reasonable.
However, you could also buy a luxury pineapple, packaged in an ornate box that unfurls like an origami box and with holes so that the fruit can breathe. The cost of that pineapple is a whopping $396. And that’s if you can find one. The Rubyglow pineapple sold out in the U.S. in only a few weeks after it became available.
While Americans might not be familiar with the idea of luxury fruit, it has a long history in parts of Asia where high-end fruit is often given as gifts. Consumers are willing to pay more for produce that is truly special. And, it’s not just pineapples that have been grown for luxury buyers.
For example, the Crown Melon is grown in Japan and costs $156; it is the single fruit grown on its vine to make it extra sweet. And let’s not forget about luxury strawberries sold in a variety of red, pink, and white berries in boxes. A typical box may contain 30 strawberries, picked when perfectly ripe, with each berry wrapped individually for protection, and costs about $128. And let’s not leave out the Pink Elephant mango from Vietnam. One fruit can weigh up to two pounds at a price of $25 – $95. Unique and delicious.
Shall we eat?
Group Activities and Discussion Questions:
- Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
- Poll students: How much do they usually spend on fruit?
- Show the Rubyglow pineapple order page: https://freshdelmonte.com/rubyglow/
- Show video: https://youtu.be/ve8-ddIVVek?si=mIh8aVG2IPAcU8CA
- Ikigai luxury fruits: https://ikigaifruits.com/
- Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
- For luxury fruit products, divide students into groups and have each group work on any/all of the six steps.
- When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
- Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.
Source: Albeck-Ripka, L. (29 June 2024). The world of luxury fruit: Does a $156 melon taste sweeter? New York Times; Wiener-Bronner, D. (19 May 2024). $400 for one pineapple: The rise of luxury fruit. CNN.
