The Price is Right!

22 Nov

You finally received your long-awaited package from (hurray!). You’re checking the invoice and everything looks great, but how do you figure out pricing?

Determining the right price is crucial; the price can make or break a sale. If you’re a seasoned retailer, you might be a pricing pro, but brand-new store owners or new product category experimenters may need a little guidance.

Remember, there’s no strict process – some methods work better for some than others. Sometimes, you just have to go with your gut feeling!

So, do your research and consider: target market, competitors (especially if you’re in e-commerce), store location, and your brand image. Keeping these four important aspects in mind, check out a few more tips below.

  1. Instead of only focusing on profit, take a moment and put yourself in your customer’s shoes. How much would you be willing to pay for the item? What’s a fair price?
  2. Generally, the higher the price, the lower the mark-up. If the wholesale price is pricier (i.e. 33N00337 series), we recommend marking-up 2 to 2.5 times. For lower-priced items, it’s typical to mark-up 4 to 5 times. However, we know some of our customers can mark-up some items 10 times!
  3. Enjoying e-commerce? Selecting the right merchandise (style-wise) might be more important than the prices. Think about your competition and offer unique products that none of your direct competitors carry. This uniqueness will let you mark-up even more than usual – you’ll have a happier bank account and an equally happy, stylish customer.
We hope you find these tips helpful. Remember that there’s always an exception to every “rule” for your unique business. If you have suggestions or topics you’d like us to blog about, please send them our way. Thanks for reading!

6 Responses to “The Price is Right!”

  1. RLT November 23, 2011 at 2:23 pm #

    great stuff will keep in mind. thanks

    • rinadon November 23, 2011 at 2:37 pm #

      Thank you for reading! Let us know how else we can help.

  2. May Atkinson November 28, 2011 at 4:15 pm #

    HI, pricing is a real puzzle to me. I sell on ebay and to be competivie I have to go with Free Shipping. I see some people have $2 or $3 profit and sell alot – is that the way to go. Seems lot of work for 2 or 3 dollars. So any help is great help. Thanks!

    • rinadon November 30, 2011 at 5:21 pm #

      Hi! Thanks for your comment – what a great question. Because you’re completely in the online business, we highly recommend you find very unique items that are difficult to find anywhere else. Some of our customers are successful on eBay because they offer unique, high-end items that help them stand out from the crowd! Entering a pricing war for both items and shipping is usually a dangerous thing. We think free shipping should just be an added bonus, not the deciding factor.

      We hope this helps you! Please let us know if we can help with anything else.

      • May Atkinson November 30, 2011 at 7:27 pm #

        Thanks, so much for answering me. I wonder which sells the most of jewelry items – Necklace,Bracelet,Earrings, or Rings. Also, are you starting to sell more Clip Earrings.
        I am thinking about starting to sell Clip Earring. Thanks, for your help.

      • rinadon December 1, 2011 at 1:47 pm #

        Hi May – From all our product categories, earrings are continuously our most popular items. Our buyers have actually been working hard to find more clip-on earrings, but haven’t had any luck yet. They haven’t given up, so hopefully, you’ll see more soon!

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