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.
Love the info in this article; thank you for sharing!
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.
QUESTION FOR SARAH!
What if I only sell retail, NOT wholesale?
how does the equation comes into effect in that case?
And I got the feedback form a local boutique where I live, about my prices and she said my children/baby tees should not go over $30.
I am a little afraid of asking to much money for my products, is there such a thing? I do want to be profitable My current cost is about $13
tks so much
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My sales rep is an old pro at the Retail Market. he taught me to mark my wholesale price at 5 x my cost of an item. This would help cover shipping, advertising, and other expenses. Most stores like to mark up wholesale prices 50%. This may sound high, but that’s what happens!