Pricing your products…

It’s pretty exciting when your first product arrives. Pricing your products is one of the many decisions in your starting your own biz list and sets the tone for selling so sharpen your pencil and calculate the retail price of your products.

 

 

 

 

Consider…

• What will your customers pay for the product?
• Cost of shipping because it needs to be added into the price.
• Profit you want to make on each product.

Visit your competition in-store and online. How does your competition price their products? How you want to place your biz in the market will determine if you undercut, match or price your products higher than your competitor’s prices. This is your pricing strategy.

• Undercutting prices is a difficult pricing strategy to maintain and larger businesses will beat you at this game hands down. Don’t go there!

• Price matching is a good strategy but be sure you can offer something else about your biz that the competition doesn’t have. If you and another retailer offer the same products…same price why would the consumer buy from you? Offer them more value! Show them how you are unique!

• Above competitor pricing is also a difficult pricing strategy but if you are offering services, being community minded or offering a unique version of the same product you may have the edge over the competition. Starbucks sells expensive coffee…or do they? Time spent reading “The Starbucks Experience” by JosephA.Michelli will be well worth it.

Building a biz is an interwoven set of decisions that are unique to your biz alone. Each decision like the one you are making here helps to build your unique brand.

While exploring the idea of moving online with Live Chic and livechic.ca; our class came to realize how important it was to price shipping and add it as part of the pricing strategy. Shipping can be very costly especially if you have large or heavy goods. Someone has to pay for transporting the merchandise from the supplier to the biz to the consumer. Be sure to add shipping into the retail price.

Determining how much you as a retailer would like to make on each piece is an important part of biz success. If you don’t add enough you can’t pay the bills and yourself. Too much and no one will buy from you.

Watch your competitors and make good choices when it comes to your biz.