Pricing Products

I've had a lot of questions about prices. There are many pricing calculators, but here is some information you should keep in mind when you price items.

1) Different locations and markets will and should have different pricing, especially if you're selling locally.

πŸ‘‰Ex: in NYC, everything cost more than in a small town in NY. Massachusetts minimum wage is $15. Cost of living is more in California than Mississippi. Money has different value depending on where you are.

2) Cheaper does not mean more sales.

πŸ‘‰If something cost $10 one place and $20 another, it might give the impression that the $10 item has lower value or quality compared to the more expensive option.

3) Plan to have sales.

πŸ‘‰Sales are inevitable at some point in your business. Charge enough that you're not cutting into profits when you have a sale. Price a little higher and have a sale - people love seeing a discount and feeling like they're getting a good deal! Do not have items ALWAYS on sale. Sales should be temporary or it will cancel out the sense of urgency and great deal feeling.

4) Decide how to charge shipping. 

πŸ‘‰Free shipping looks great! If it's not rolled into your product pricing though, you'll be loosing money. Figure out shipping costs and charge them or roll them in.

5) Take ALL costs into account.

πŸ‘‰If you need to pay shipping to receive materials or items, don't forget to include that in your calculations. If you need to pay dropshipping fees, include those. If you need to purchase boxes, paper, tape, thank you gifts, etc the money for it needs to come from somewhere. There are a lot of costs to do business than just the basic products. 

6) Different businesses typically charge more and customers are used to and expect that.

πŸ‘‰A shirt at Nordstrom is more expensive that a shirt at Target; quality may be the same, but customers know to expect the $ difference. A boutique will/should/can charge more than a living room Krazy Kraft business. Name and present your business the way you want it to be.

8) Remember - you πŸ‘ are πŸ‘ worth it! I'm not saying to charge a million dollars and not have any sales, but don't sell yourself short. Also... if your item is a million dollar toothbrush, you only need to sell 1 to have a million dollars in sales 😘


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