Last week, Lemonade Day shared an article about a unique toaster that puts selfie’s onto bread. Strangely enough, the post was incredibly popular among the wonderful weirdos that visit our site and Facebook page so we decided to see what other crazy contraptions entrepreneurs have created. And very quickly, we found something we couldn’t believe. For your consideration, Kube! The $1,000 cooler!

Marketing 101: Know Your Market

One of the more common questions kids ask when participating in Lemonade Day is, “How much should I charge for my lemonade?” While an important question, it’s not a particularly easy one to answer. The simplest explanation focuses on a price point that makes a profit while driving sales. Many customers would not purchase a $5 or $10 glass of lemonade. As a result, kids often sell their lemonade between $.50 and $2 per glass.

This is sound business advice but, from time to time, an entrepreneur figures out a way to charge A LOT more for something that is traditionally cheap.

The Kube

Depending on your outlook, the Kube is either a really expensive cooler or a costly portable sound system. With a 35 quart storage space and Bluetooth enabled speakers capable of maintaining 125 decibels over 20 hours, the Kube is impressive. The Kube is also waterproof and sturdy enough for someone to stand on (if the promotional video on the company website is to be believed). However, the most surprising element of this product is, without a doubt, it’s jaw dropping price tag.

How Much Does a Kube Cost?

At $1,000 per unit, the Kube is one of the most expensive coolers on the market. Anything more expensive tends to be called a refrigerator. There are other expensive coolers available on the market that are much more basic than the Kube however. (This Yeti cooler, for example, really is just a well made, plastic cooler and costs $550.) This is even more remarkable considering the fact that Wal-Mart, among other retailers, sells similarly sized coolers and ice chests for any where from $20 to $80. The most expensive cooler on their website, which contains more than 1,000 different coolers and accessories, was less than $300.

So how does a company charge so much for a product that typically costs much, much less? There are a few strategies but let’s talk about the ones used by Kube and Yeti.

Want to Buy a Cooler?

The products offered by Kube and Yeti are basically the same but marketed in different ways. The Yeti cooler is essentially a large plastic box. That’s it. It is a well made plastic box, having endured severe product testing under extreme conditions. As a result, it’s a great, long term option for after school programs and sports teams. A high school football coach only needs to buy one Yeti cooler that will last more than 10 years. With lower cost options, from bigger brands like Coleman or Igloo, you almost certainly will have to pay for replacements.

The Kube, however, is reaching for a different market niche. Their advertising focuses on the type of consumer likely to spend $1,000 on a cooler with a built in speaker. This type of consumer is more likely to be tech savvy and interested in the latest devices. However, there is a social component to this product. Music played at 125 decibels is generally intended for more than one person. Young professionals with expertise in technology or successful sports fans are perfect candidates for a product like the Kube. It also so happens that consumers in this demographic are more than comfortable spending four figures on the latest device. Even if that device is one really neat, albeit expensive, cooler.

So, What Did We Learn?

Know your market! Companies charge the prices they do because they know they can. For kids on Lemonade Day, this advice can make a big difference in performance. Are you selling at a state fair or large family event? Then keep your product simple, classic, and inexpensive. Customers are more likely to indulge in your specific lemonade if it’s affordable and fits the moment.

Have you managed to grab a booth at a charity auction or a formal event? Add some flair to your lemonade! Don’t use normal sugar; use locally sourced honey or agave nectar. Then charge for it! In this context, $5 or $10 for a glass of lemonade is actually appropriate. This demographic is more likely to purchase a well made glass of expensive lemonade. Especially if it’s from a talented entrepreneur that realized how to market a great product.