When you’re new to business, it can be difficult to determine the proper pricing for your retail products.
If you priced too high your competition will benefit, as you drive customers away. Conversely, if you priced too low you will struggle to make a profit and eventually find yourself in a difficult position.
The laws of pricing aren’t very complex. It begins with understanding your wholesale cost. In most industries, a minimum of your retail sale price should at least double your wholesale cost, but that’s not always the case.
In order to properly and strategically price your retail products, you must first begin with researching your competitor’s prices. You want to aim to be within range, but also take into consideration any differences or attributes your business offers. For example, if your competition is selling similar products but you are in a location that’s considered to be more metropolitan, you can offer your products at a higher price because of this advantage.
Another awesome competitive advantage that your business can utilize is offering retail financing. By offering retail financing, your business will have a huge advantage over your competition. Offering retail financing is simple.
This allows you to price your products at a higher rate than your competitors who may not be offering retail financing at all. Instead of focusing on the final price, your customer reviews your product from the standpoint of a monthly payment. Making monthly payments allows your customers to fit your product within their budget and they are more likely to purchase and refer your business to friends and family.
Contact Financing Your Way to get started and soon you can allow your customers to pay for your retail products over time.