How to Price a New Product
Many people ask me for pricing advice when first launching a new product. I can only speak from experience from being in the fashion/ accessory market.
Wholesale mark up for the fashion/ accessory business is usually in the range of : “your cost + 40-50 %”
Then retail prices would be: “wholesale cost + 40-60%”, often referred to as MSRP (manufacturer’s suggested retail price).
I have also been asked about only selling online and how to price your product. Although it is tempting to sell at a low price in hopes of getting the consumer “hooked on” your product, often you can price yourself out of business…
If you intend to eventually sell your product to retail stores (wholesale) , then you should only sell your product to the public at the MSRP (manufacturer’s suggested retail price) .
This strategy will give you actual sales history and proof to retailers that the consumer will pay this amount for your product. Otherwise you can cut yourself off from any future opportunities.
If you do not have retail sales experience, then perhaps you should consider hiring a consultant to help you. Another suggestion would be to hire a sales rep that can sell to retailers for you for a commission.