Pricing Strategy & Financials
Your pricing strategy must cover costs, allow for marketing, and be profitable for you and the retailer. Without a solid pricing strategy, retailers won’t trust that you can manage the business well enough to be on their shelf.
Retailers expect a well-defined pricing strategy that helps them set competitive and profitable prices for your products. The right pricing strategy can influence consumer perception, brand positioning, and even consumer demand. Striking the right balance between price and perceived value can lead to increased sales and market share.
Retail pricing basics. The suggested retail price (SRP or MSRP) should allow retailer margins of 30-50%, with enough wholesale profit margin to cover business expenses — including marketing costs — and still generate a profit for the brand.
With more than 25 years of experience in product development, supply chain management, and retail sales and marketing, we know how to add value and reduce costs to create the kind of profitable (and sustainable) pricing strategy retailers are looking for.
If you don’t have the right pricing strategy, retailers won’t trust you to manage production, distribution, and advertising effectively enough to be on their shelf.