![]() Understanding your competitors is very important. If you are selling to retail buyers, your brand will be sitting on a shelf next to other brands. Related Reading: How to Make the Most Out of Trade Shows in 2018 Here are the factors I consider for wholesale pricing: If you resist the urge to merge the two, you can optimize your operations through scrappiness and scale faster. I say that to fully compete in the market today you must treat your business as two parts: (a) the product itself and (b) strategy for selling the product. Some will advocate a cut-and-dry formula: manufacturing costs + materials + profit + expenses = wholesale price. Here’s what I told my client on how to approach pricing in thinking of her company’s bottom line. Product margin is the markup on your product above cost and gross margin is the profit for the business as a whole, after considering cost of operations. The other confusing aspect of pricing concerns margins. Many brands aspire to exercise both channels, and others just one. Pricing strategies differ between wholesale (e.g., selling to retail buyers) and direct-to-consumer (e.g., selling through your own e-commerce site) channels. However, don’t confuse pricing with profitability – there are many factors that affect a business’ profitability, and pricing is just one of them. Pricing also has practical effects on your business – it is the lifeline that can sustain growth or bleed you. What my client didn’t realize at the time was that pricing tells a much larger story than just how much something costs it shapes your perceived value and it can determine the difference between a high customer lifetime value or a low one. Are there ways to lower production costs? 3. Before analyzing her marketing and sales strategies, we discussed price. One of my new clients told me the other day, “I want to make $50,000 in sales this year.” She just launched her brand last year and was starting to plan for 2016. Now I work with brands to help them price, launch and grow their own product lines. How? Through pricing, merchandising and marketing. I turned a $50M business into $100M in 2 years. ![]() Follow her on Instagram, YouTube, Twitter & Facebook Check out her company’s video on “ How to Price your Collection for Wholesale Buyers.” Putting Price in Perspective Syama Meagher is the CEO of Scaling Retail, where she helps brands launch and grow. ![]()
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