Price Increase of Girl Scout Cookies is “Good Business”
Starting next year, the price of Girl Scout Cookies will be $5 a box instead of $4, that's an increase of 25%. Although some consumers are miffed about the price hike, experts say that it's "good business".
“On average, Girl Scouts sell about 200 million boxes of cookies — nearly $800 million worth — during each cookie season,” the Scout’s director of communications Stewart Goodbody told Forbes in an email. Troops use the profits to fund community service projects in local hospitals and playgrounds, she said.
25 percent is a pretty big increase in price. Experts are saying that a well-loved brand like the Girl Scouts can get away with this kind of pricing strategy. “There’s social pressure to purchase these cookies, so consumers’ sensitivity to prices is lower compared to the desire to do the right thing,” says Robert L. Phillips, director of the Center for Pricing and Revenue Management at Columbia Business School.
With the extra money per box, the girls will get an average of $0.90 every box of cookies sold. In past years, the scouts only made $0.62 per box.
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