I am not an expert in this area but I know that a lot of distributors and resellers will not appreciate the competition from you company. You may want to examen selling from you website at a discounted price. This could undermine your retail price in stores. You want to show a united front when it comes to pricing a keep yours close or similar to that of your retailers.
Again I am not an expert but this is just some knowledge that has been passed on to me from veterans in the business. For example, the president of www.booninc.com .
I have to disagree with everyone else so far. The customers themselves determine what they are willing to pay. A good question to ask yourself would be how many more will I sell if I lower the price? I mean if you can move a lot more product by lowering the price while still making a nice profit, then by all means do it. I do not agree with the premise that you may offend other retailers if you price is to low. Who cares what they think. Do you think they would really care if they lowered the price and it had a negative effect on you? Heck not they would not care, especially if they were making a lot more money. It is very dangerous territory you are getting into if you start worrying about your competitions feelings. You have to sell the product at the price your customers are willing to pay and at a price where you still make a profit. That is not to say that if you are way higher than your competition , that you shouldn`t adjust it a little. I am sure you have heard this before but it is worth repeating. In business you have to constantly adapt and adjust or you get passed by. Why should you sit there and not make money and watch your business fail? Because your competition does not want you to? That is not the entrepreneural spirit. I don`t mean to sound rude, I just am not a fan of spending my day worrying whether or not I am making everyone happy. You do what you feel is best for your business. That is the best way to go. After all, it is YOUR business.
You do realize those "other retailers" are her customers. All the distributers, and retailers of the product are her customers. She wants to avoid competing with them.
Lisa is the manufacture, When she sells direct on the web she`s competing against herself.
Thanks for pointing that out. Apparently I did not read that right. oops! One thing I would say is that I do purchase from a lot or manufacturers who also have their own website and that does not bother me at all. I am still able to sell their items at a good price.
Thanks to everyone for all the great input. Haven`t been here for a couple of days due to the flu, but now back up and running (literally).
Vincent, I like the Great White Shark analogy - while we don`t technically do our own manufacturing, it is our invention, our product, and the manufacturer produces it exlusively for us. Sort of best of both worlds, since we don`t have to worry about manufacturing process, warehouse space, etc. We have already filed patent application, so when some one else tries to copy us, we will be ready. Of course no one else`s product will ever be as good - we are setting the industry standard! And I like the idea of setting pricing guidelines for retailers - will definitely have to work that in.
We do plan to do both retail and wholesale for now, but we will see how it goes and not get locked in to one or the other exclusively at this point.
Thanks again to all - what a great community this is!