What is the pricing strategy behind the cheap traditional cakes?

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The Pricing Strategy Behind the Cheap Traditional Cakes

The pricing strategy for the inexpensive traditional cakes was to draw in more patrons while ensuring the quality and taste remained high. This approach involved setting specific low prices for individual items, such as three kuih lopes for RM1 and four cucur udang for RM1, to make them highly accessible to customers.
Attracting Customers with Low Prices

The strategy of offering traditional cakes at notably low prices was primarily aimed at increasing customer volume. For instance, kuih lopes were sold at a rate of three pieces for RM1, and cucur udang were priced at four pieces for RM1. This tactic was designed to encourage more people to purchase the items by making them exceptionally affordable.
Maintaining Taste and Quality

Despite the low prices, the intention was to ensure that the good taste of the cakes was not compromised. The seller, Razali Abdul Latip, who has operated at the site for three decades, indicated that both the commission agent and the cake maker agreed not to increase prices, focusing instead on maintaining the established flavour profiles that customers expected.
Commission-Based Sales Agreement

Razali Abdul Latip, the vendor, clarified that his role was primarily to earn a commission from selling the cakes. The pricing structure was a result of an agreement with the actual maker of the cakes, with both parties concurring on the decision to keep the prices low. This collaborative approach ensured that the cost-effective strategy was mutually supported.

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What is the pricing strategy behind the cheap traditional cakes?

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