Or they might choose a retail price without considering a wholesale price. Then when they have a wholesaling opportunity they realise it’s not economically viable.
Both of the above scenarios can lead to losing out on potential revenue, and mean you need to sell more products to make a profit (except in the worst-case scenario where you’re selling products at a loss, so the more you sell, the more money you lose).
Having your pricing right from the get-go will save you a lot of grief down the track.
Profit = revenue (sales) minus expenses (costs)
So it’s essential you understand your running costs before you work out your prices.
Pricing for Profit will help you feel confident you know the costs involved in running your business so you can price your products to make a profit. It'll also give you formulas to use to calculate prices based on your cost.
The package includes everything you need to easily work out how to price your products, regardless of whether you make your own products or have private labelled or contract manufactured products:
>> The importance of pricing
>> Pricing definitions
>> Pricing strategies
>> Psychology of pricing
>> Wholesale vs retail prices
>> How to calculate prices
>> The right price
Knowledge is power.
Although it can be frightening to see all your costs laid out it’s better than keeping your head in the sand. And this package gives you the know-how to get you on track to increasing your profit margins.
Sure, there are some free pricing templates available online. But this one is a gamechanger.