To maximize the sales of your wholesale products you need to be
able to set an optimal price that allows you to present your
customers with an impulsive buying motivation, while giving your
business the highest possible profit margin.
Setting the most appropriate pricing for your wholesale closeout
products is an art by itself, which retailers spend years
developing and perfecting.
Let's say you have a pair of Nine West shoes for sale,
you might be tempted to simply
retail them at a rock bottom price.
But pricing them too low might prevent
you from earning a higher profit
that you could have had if you
sold them at your boutique for a
Based on my years of experience in retail and wholesale sales, I
would like to share the following tips with you.
Price Setting Tip #1
Set a price that is competitive, and is lower than those of your
nearest geographic competitors. Your prices only need to be lower
than those of your immediate competitors. If you own a small
boutique that sells Calvin Klein designer dresses, your price should be lower
than those offered by nearby dress boutiques. Even if a retailer in
another city offers a slightly lower price than you do, it's not
realistic for your customers to travel a great distance just to
receive an additional small discount on a Calvin Klein dress that they need
Price Setting Tip #2
Never set a rock bottom price for your merchandise. One of the
smartest lessons I learned in retail is that perception is
influenced by price. If your clothing, shoes, or handbags, are
priced at a very low price, customers will have a lower perception
of the quality of your items. Set a high price, and the initial
perception of your products will be that much higher.
Imagine that you walk into a handbag store and
see a Coach handbag being sold for $20.
Wouldn't you question why
the Coach handbag was being sold
for such a low price?
So yes, you want to have low prices on your
wholesale merchandise, but not too low
that shoppers will question the
quality of your items.