If The Price Is Right: How to Sell Wholesale Sunglasses and Make a Profit (part 1)

Are you retailing those sunglasses at the right price?

If you’re not sure, then this is the right place to start. We, at GotShades.com, are giving you a two-part guide in pricing your products. These fool-proof tips are not only applicable in selling wholesale products like sunglasses but for other products as well.

For the first installment of this ultimate guide, we’re sharing with you two secrets on how to be prepared for the ultimate pricing game.

Are you ready? Because we are!

Pricing Tip # 1 Be clear: Know what you want out of the business

Entrepreneurs set out on business ventures for many reasons. Some are at it to make money while others long to fulfill their desire for achievement or doing something great. Social entrepreneurs usually create businesses with other people in mind. That is, they create income generating businesses that answer the needs or improve the lives of others. But more often than not, businesses are opened to pull in financial resources that’ll pay for cost and produce a decent income or savings for future business expansion. Make sure that your goals and objectives are clear right from the beginning. This will help greatly in achieving them.

When setting pricing goals and objectives, honestly answering these 5 questions can point you to the right direction:

§         How much is an acceptable income for me?

§         How long can I wait to get a return on my investment? Until when can my financial reserves support the business?

§         Will my product pricing serve other business purposes like branding through image creation?

§         What do I want to achieve in this area of my business in the short, medium and long term?

§         Is my desired price fair to all stakeholders including suppliers, employees, consumers and myself?

Pricing Tip # 2 Make it right: Under pricing and over pricing is not good for you

Elizabeth Wasserman stressed this point in her Inc.com article on pricing. In How to Price Your Products, she established that both under pricing and over pricing pose tremendous risk for businesses. Listed below are some of the pitfalls of these poor pricing strategies:

Under pricing

§         Lowered pricing can send the wrong message that your goods are “cheap”

§         This pricing scheme may not really cover all of your expenses and production costs

§         Choosing short term games offered by lower pricing can sacrifice long term pricing and financial goals of your business

§         Product and service quality could be sacrificed

§         Your products would have to sell at least twice as much to achieve the same income or financial goal

Over pricing

§         Prospective customers may turn to your competitors. Not necessarily for better quality but for a more reasonable pricing.

§         Sales of your sunglasses or any other product can instantly decrease

§         Business appear to be less concerned with consumers

§         High income doesn’t necessarily mean growth and expansion for your business unless funds are managed appropriately

§         A premium price is not always equal to good quality

 Visit our blog soon for the next set of tips on how to get the pricing technique right.