The Ultimate Product Pricing Checklist

The Ultimate Product Pricing Checklist

by Trudi Roach

So many small brands don't charge enough for their products! It might sound crazy but sometimes the value of a product can be hard to put a number on, particularly if you are the maker or creator.

Product pricing is an important part of running any business. It helps you determine how much money you're making per sale, which in turn determines whether or not you should continue selling that particular item.

Product pricing is a key element that impacts whether or not you have the right overall product positioning. And positioning your product correctly in the marketplace helps convey your overall brand value to your customers.

If you're not feeling confident about your current product pricing or are just starting out in your business, this step-by-step checklist will work for you.

The Ultimate Product Pricing Checklist: Determine Your Target Market.

Before you start pricing your products, you need to figure out who will buy them. This means determining your target market. Who are you trying to sell to? What are their needs and wants? How much are they willing to spend? Once you understand these things, you can set your price accordingly.

Want to learn how to find your target audience? Dive into the guide here!

The Ultimate Product Pricing Checklist: Set Your Price Points.

There are two ways to determine your price points: by looking at competitors' prices or by using a formula. If you're starting a new business, you should use a formula because it's easier than comparing prices with other businesses.

A good formula is to take the average cost per unit (for example, $5) and multiply it by the number of units you expect to sell. So if you plan to sell 100 units, you would divide $5 by 100 and then multiply that result by 100.

That gives you an estimated price point.

The Ultimate Product Pricing Checklist: Calculate Your Cost Per Sale.

Once you have determined your price points, you need to calculate how much profit you will make on each sale.

To do so, you must first figure out how much it costs to produce each item.

Then, you need to add up all of those costs and divide them by the total number of sales. This calculation gives you your gross margin percentage.

The Ultimate Product Pricing Checklist: Find Out Which Products Are Selling Best.

If you're not sure where to start with pricing, you might consider looking at some of your competitors' products.

By comparing your own products to theirs, you can see which ones are selling better than others.

You can also use Google's AdWords Keywords Tool to find popular search terms related to your product. These tools can help you determine which words people are using to search for your product.

The Ultimate Product Pricing Checklist: Figure out how much profit you're making per sale.

Once you've determined the price point you want to charge for your product, you need to figure out how much money you're going to make off each sale.

This will give you an idea of whether or not you should raise your prices.

To calculate this number, divide the total cost of your product by the average sales price.

Conclusion:

OK, so there it is, how to price your product for maximum results. Say goodbye to undercharging and missing out on profits!

Got questions about your pricing or product positioning?

Don't forget to book a free on-demand product positioning assessment, the link is here!

When you sign up, you are going to fill out a short questionnaire. Then we’ll hop on the phone together for 30 minutes and you'll share a little bit about your business with me. ⁠ ⁠ I'll take a look at your specific situation and analyze what’s going on! I'll share THREE ways to help you improve your product positioning to increase sales and traffic at the end of the 30 minutes.⁠

You're going to learn more about positioning your product to grow your online sales.

You can also check out trudiroach.com to learn more about my FashionVIP program.

This is where you learn the step-by-step roadmap for creating a revenue-generating clothing brand, so you can find new customers & increase sales, turn your products into best-sellers and get your unique product out into the world.

⁠

PS: If you're a new creative entrepreneur and just getting started, no problem. Go ahead and grab my FREE 6-PAGE GUIDE to Launch and Grow Your Fashion Brand training 👉 HERE

PPS: Are we connected on instagram? No, well we can get that sorted! Hop on over and join me. Follow me for tips, inspiration and more. Then send me a DM so I know you connected.