Quality Merchandise which will always look a million dollars.
Are you struggling to find the right product at the right price to sell as a retail product?
There are a few golden rules to follow when it comes to product and pricing for retail merchandise and we are here to help.
It’s all about profitability and mark up but what is a markup?
Even though there is no hard and fast rule for pricing merchandise, most retailers use a 50% markup. What this means, in plain English is doubling your cost to establish the retail price.
Because the markup is figured as a percentage of the sales price, doubling the cost means a 50% markup. So if you buy a branded pen at 50p with vat at 20% this would be 60p and a 50% markup would allow you to sell it at £1.20 it also depends on the perceived value of a product too and how you brand it.
Although doubling the price may seem excessive it really isn’t once you consider the costs to take your branded retail product to market: rent, marketing, taxes, payroll, electricity,
Initially, we would advise you to ‘test the market’ and buy lower volumes of a branded product and in our opinion, the best retail products are wearables such as varsity hoodies, t-shirts, caps, umbrellas, hot-cold bottles, and notebooks. These can be printed, embossed, or embroidered to give a high-quality retail finish.
We can even create some physical samples for you to test the market with. Sell before you buy and take some pre-orders based on samples.
When launching a new retail product, a pre-order strategy is a highly beneficial, strategic way to test pricing and demand for your product. And we can help you to do this for free. How? By creating product concepts and visuals you can promote and sell via Facebook and Instagram shopping carts.
Pre-orders can help you generate buzz and build momentum before your launch, and most importantly, lockdown early sales to fund the production. You can create an air of excitement and exclusivity about your product and list it on your website and social media channels before production.