Advantages of Price Packs

• Allows price differentiation at point-of-purchase.
• Allows manufacturer to control liability.
• Can be used to promote a particular size or flavor.

Disadvantages of Price Packs

• Are regulated by the FTC. (Brand must have an established price, no more than 50% of annual volume can have price packs, only 3 price pack events per year are allows, there must be at least a 30-day period between each price pack.)
• Have long lead times.
• May downgrade a brand’s image.
• Can be unpopular with the trade. (Generates a new SKU, but no new traffic.)

Source: PMA