0
»

#neverstoplearning: pricing for profit

Image via Pinterest

Happy Monday!

Today, I want to talk about pricing for profit. Often when I meet with new entrepreneurs, I find they are not pricing their products at the ideal price — meaning one that guarantees a real profit! I have to remind them that you don’t always have to lower a price-point to beat out competition. Pricing combines a number of variables, not just competition. Some of the most important are market value and value proposition. If your price is higher, but you can justify it through creative brand positioning, you won’t have a problem selling.

Now, let’s get down to the formulas:

(Cost of Materials, Labor, Packaging and Shipping) *2.2 = A (wholesale price)

A *2.2 = B (retail price)

If you have plans to sell wholesale in the future, I would recommend doing this exercise to see where your numbers roll in at the wholesale and retail price. Then, massage the numbers so they make sense.

After, I would encourage you to create a linesheet that will make the buying process easy for retail buyers. This linesheet should have all the information a buyer needs to place an order. The easier you make it for a buyer to purchase your line, the better chances of getting an order!

For those of you looking for more assistance in pricing for profit, I recommend my Retail Recipes e-workbook. It’s full of many more tips on how to successful price your products and create those all important line sheets. Check it out here.

Cheers!

xoxo,

What's on your mind?