Pricing a product can be a tough decision. It’s especially hard if you aren’t sure where to begin. Charging too much can hurt your sales and charging too little can hurt your brand. So where do you start? We put together this blog to help you navigate pricing your items.
What Is MSRP?
MSRP stands for manufacturer's suggested retail price. MSRP refers to the price that the manufacturer suggests you sell an item at. In this case, Printaura is the manufacturer. This number is in no way set in stone. We provide an MSRP for our members as a place to start. You will be able to see our MSRP when you add products to your store through Printaura. It will automatically populate when you add your product.
4 Things To Consider When Pricing Your Products
Now that you understand where to start, take these factors into consideration when you price your items out. In some cases, the MSRP makes the most sense. In other cases, the MSRP may be too high or too low.
Your USP (Unique Selling Point)
USP refers to your place in the marketplace. Are your designs unique? Are you offering something no one else is offering? If so, you can price your items higher. The uniqueness of your products adds value and demand, therefore you are in a position to be able to charge more. If you are selling products that everyone and their neighbor is selling, you aren’t in good position to be asking for higher prices.
Your Target Market
Consider who you are selling to. Are you selling to college kids, athletes, moms, or rock climbers? Whoever you are selling to, think about their position and what they would be willing to spend on your items. If your designs are geared towards students, you might want to reconsider that steep price tag. Doing some research on the people you are trying to sell to can help you price your items to sell.
Your Marketing / Advertising Costs
Consider how much money you spend on marketing and advertising. You will want to make up those costs in your product sales. You need to pay close attention to the profit margin you need to be successful when you are pricing out your items. Do the math and make sure your product prices reflect the amount you need to stay in the black.
Do some research and find people who are selling similar items. You want to be in the same ballpark as your competitors. You should never feel like you have to slash prices to get a leg up on the competition. That can damage your brand in the long run for a number of different reasons. You also shouldn’t be setting your prices miles higher than people selling similar items. Consider quality, shipping costs, return policies, size/ color options, and anything else that might put you in a position where you should be charging a little bit more or a little bit less.
Bonus Tip: Try using odd numbers when you price out your products. It sounds crazy, but there is something to be said about pricing psychology. For example, a study showed that using a price that ends with the number 9 increases demand. So next you you are thinking about charging charging $30 for something, try $29 instead.