Setting the right retail price for your product is kind of a balancing act. You need to take many things into consideration. But then you have to step back, put yourself on the other side of the aisle, and ask yourself, “What is this product worth to a customer?”
The following is an exercise from my upcoming book, The Five Laws of Retail.
- What are you selling?
- Are there others in your market who are selling the same thing?
If so, how much are they selling it for?
- Can you “test” the retail price by offering just a few of the products for sale, at first?
- What’s a good “friendly” price point to sell it for?
- Ask your potential customers what they’d be willing to pay or do to accept your product.
- Lastly, what did you pay for the product?
Should that amount change in order to find an appropriate retail price that will still be profitable for you and sell at an acceptable turn rate?
Answering these questions will help you determine how much you should charge.