There is obviously a myriad of factors on whether a customer chooses your product. Things like product features, the company’s reputation, online reviews, return policy and shipping costs come to mind but the final and biggest hurdle of getting a purchase will always be about price.
When of your first steps to finding that perfect price point is to conduct market research. Surveying the competitive landscape in your industry and comparing your product with competitors should give you a solid idea of where your product fits in the current market. After your research, you must set a market price. When picking this price, consider your profit margins, which is typically 30% or above. Retailers may want a profit margin of more than 50%, so keep the retail price in mind as you calculate it. You may want to provide a “suggested retail price” to help ensure that retailers price your item competitively — though you cannot control the final price that retailers set.
For much more on the factors to consider when pricing your product, check out the accompanying resource.
