How to Price Your Supplement Products
What many new business owners may not understand is how to price their supplement products. They may believe that they can just slap any price on the tag and make money, but that is not always the case. There is a lot of planning and science that goes behind choosing prices for your products. Here is what you need to know about how to price your supplement products.
Make a profit
Making a profit is the most important thing any supplement business should be accomplishing. This is the only way a business can survive and eventually grow. This means more than just covering costs and breaking even. It is recommended that companies have at least a 10% profit margin, which is the percentage of a sale that turns into a profit.
Keep track of how much you spend
Before you can put a price on your products, you need to know how much you spend each month. This should include rent, subscriptions, employee paychecks, shipping costs, etc. Your supplement business should be making more than it spends.
Related: Biggest Supplement Business Mistakes
Pay attention to the competition
One way to make sure your business does not fall behind is to pay attention to what your competition is doing. This is especially important when deciding on prices for your products. Looking closely at how similar products are priced can help you determine what price tag to add to your own. However, there are some mistakes to avoid. Pricing your products either higher or lower than the rest of your competition can have negative impacts. Pricing your products too high will rule out customers who are not willing to spend too much money on a product they believe is not worth it. However, pricing your products too low can come off as cheap or low quality. Matching the average price of your competition is a great place to start.
Odd numbers – One pricing hack that has been used for years is using numbers that lead people to believe they are getting a better deal. This is done by labeling your products at $9.99 rather than $10.00 or $5.99 instead of $6.00.
Re-wording – Your wording is also important, especially in online shops. One hack that has become increasingly popular is offering free shipping and adding the cost of shipping into the base price of your products. Using other sayings such as, “as little as $3” or “for only $3” are also helpful. This tells your customers that they are getting a great deal on your supplement products and will help them feel more confident in their purchase.
Bundling products – Another pricing tactic is to sell products as a bundle. This is done by lowering the price for one product if they purchase it with another product. You may lose money on that one product. However, if the bundle deal works out, you can end up making more sales.
There is so much to know about how to price your supplement products. Following effective strategies, however, can help you make the most in your business. To begin the process of starting a supplement product line with Private Label Liquids, follow the link here to learn more.