How to Price Your Supplement Products
One of the trickiest things to figure out when you start a new supplement company is pricing your products. Having the wrong prices can discourage customers from purchasing from you. Either from your prices being too low or too high. Here are some tips to help you learn how to price your supplement products.
Make sure you are profiting
One of the goals of any business should be to make money. Without making enough money, you will not be able to cover costs or even expand your business in the future. This means that you need to charge more than what you paid for. This is the benefit of purchasing your products from a wholesale manufacturer. You can get a better deal on your dietary supplements and make more profit.
Related: Small Business Tools for Your Supplement Line
Keep track of the competition
One of the most important ways to help you know how much you should be charging your customers is to pay attention to what your competition is charging. One mistake many business owners make is pricing their supplements lower than the rest of their competition. Not only will you not be making any profit, but you may even be scaring customers away. Having the lowest prices can come off as cheap to many potential customers. This may discourage them from purchasing from you and move on to a supplement that they believe is high-quality. It can even lead to other businesses lowering their prices to match, making it more difficult for you to raise your prices when you want to in the future.
However, if you want to sell at prices similar or even higher than your competition then it really just comes down to marketing. Whoever can sell the best is the business that is going to make the most money. This means that you need to take a closer look at your sales strategy.
Know what you are spending
Before you can decide what to charge for your supplement, you need to know how much you are spending. This will help you determine how much you need to charge customers to make a profit. You need to think about the cost of your supplements, shipping, store rent, and any other fees. Add up every business cost to find out what you would need just to break even. This is a great starting point where you can then decide how much to charge to make a profit.
Boosting Sales
Bundling products – One way to encourage sales is to create a bundle deal. By pricing one item low, you can draw in potential customers. When they see that they can get similar products for a deal, they may be encouraged to spend more. This can be a risk to lower a product so low and lose any profit. However, if it is effective, you can end up making more from the sale.
Odd numbers – Another sales hack is to use odd numbers to make more sales. An example of this is pricing a product at $29 instead of $30 or $39.99 instead of $40. This helps your customers feel better about purchasing because they may believe that they are getting a better deal.
Figuring out how to price your supplement products can be tricky. However, with the right strategy and planning, you can find the right prices to effectively sell and make a profit. To get your supplement line started, contact Matsun Nutrition for a quote.
Sources
https://www.inc.com/guides/price-your-products.html
