Hey TrueProfit! Not sure if this aligns with what this AMA is about but i got a quick question on product pricing!
I have a new brand i am launching this summer. It’s in the pet edible products space - which is a highly repeated purchase category but also lots of competition. My product is aiming to be more on the premium side but not in the unafforable stratosphere.
How does one go about trying to price their product and profit margin? I understand I need to do competitor research and see other prices, but even then how do I finally chose a price to go with?
Thanks!
Thanks @PMP214 ,
As for your question—once you’ve done enough research on market demand, competitor pricing, and other macro factors, you can aim for a price that’s around 15–20% higher than your competitors.
The 15–20% is just a benchmark—you can absolutely go with a number you feel comfortable with. Just make sure it strikes a balance between your pricing strategy (since you’re aiming for the premium side) and the price point your customers are willing to pay.
And of course, for the pricing strategy to really work, there are other things you’ll need to build around it: improving your store’s UI/UX, enhancing customer support, upgrading packaging, shortening delivery time… Customers will always notice when your product is priced higher than others—so they’ll need one strong, clear reason to choose you instead. Make that reason crystal clear.
Wishing you lots of success with your business!