Almonds are expensive
Why is it that M&Ms, Peanut M&Ms, and Almond M&Ms are all sold at the same price?
When I want to buy almonds at Safeway or Trader Joe's I quickly notice that they are often two to three times the price of peanuts -- an observation often prohibiting my purchase. So how can Mars get away with putting almonds in chocolate and selling them for the same price as peanuts in chocolate or chocolate in chocolate? Is there an Almond-M&M-fan lobby, hustling for an artificial price ceiling on this M&M variant? Does the company own an almond island worked by umpa-lumpa-like almond slaves, providing them with a cheaper source for this remarkable nut?
I am sure there is some reasonable answer to this quandary. Perhaps some strategy covered in a business marketing textbook somewhere. Anyone know?
Update: I have been informed by an intelligent SJSU marketing major that the answer lies in consumer perception analysis. While higher price signifies a higher quality product, a lower price is perceived as a lower quality product. Therefore, raising the price of the Almond M&Ms would give fans of the regular M&Ms the impression that their preference was of lower value, thereby estranging a portion of their customers. The higher price of almonds is apparently not significant enough to justify the loss of regular and peanut M&Ms buyers.