Ann Davis says:

Dear Sarah,
I just read your response about pricing our goods at retail. I respectfully could not disagree more. I say always sell online at a higher price than your retailers. As a wholesaler selling at retail, we walk a very fine line when it comes to competing with the stores with whom we’ve built or are building strong working relationships. I would think that pricing the item higher than a “keystoned-retail price” not only gives our retail stores a chance to get full retail markup but allows them to show their local customers that they offer a good deal and should shop with them. If I set a retail price of $25 on an item that has a $10 wholesale, my retailer has the opportunity to price it at $20 for a full mark-up and brag to their customers about their great value. On the other hand, they can also choose to price the product right along with me at $25 and actually get more than a 50% discount. It also allows them to offer a special of maybe 20% off and recoupe their full wholesale price. They can’t accuse me of being too much competition. Does that make sense? Where am I missing the boat on your answer? P.S. I love reading Entreprenette! Not trying to be combative….just truly wondering where I’m off base in my thinking.

Sienna says:

Ann Davis: I totally agree with you as well. This way retailers can carry a product without feeling the brand is themselves a competitor. Especially as brick and mortar stores have a much higher overhead than etailers. It entices shoppers to stay local as well.