Pricing your products or collection can be a challenge for many emerging designers and there are various opinions out there on the best way to do it.
So no matter if you are pricing your products for wholesale or retail (or both) here are some tips to make sure your products are priced for profitability!
- Check out the competition- ask yourself what your product and their product have in common? What is the feedback like on their items? Can the feedback on their items help you with pricing your product?
- Think about how much you would pay for each item at retail- divide that number by 2 to get a wholesale price. Then look at all of your costs (materials, fabrics, sample costs, your time, etc.) and make sure you have enough “cushion” to make that wholesale price work. If it doesn’t work then you might have to adjust the retail price or look at some of your overhead costs.
- Selling your product too low can hurt you- selling it for the sake of selling it or setting too low of a retail price can lead to a false sense of success and prevent you from obtaining the profit you need in order to grow your business.