{"id":11283,"date":"2022-07-28T08:00:00","date_gmt":"2022-07-28T16:00:00","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=11283"},"modified":"2022-08-04T10:31:14","modified_gmt":"2022-08-04T18:31:14","slug":"four-steps-to-product-pricing-success","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/four-steps-to-product-pricing-success\/","title":{"rendered":"Four Steps to Product Pricing Success"},"content":{"rendered":"\n

Do you know if your product is priced right for its category? Do you know exactly how much you\u2019re making on each unit you sell? And if so, have you considered all the hidden or additional fees associated with doing business in retail?  <\/p>\n\n\n\n

If you answered \u2018NO\u2019 to any of these questions, you\u2019re not alone. In fact, you\u2019re like most of the founder-led brands I work with. But because it\u2019s such an essential piece of sales success, it\u2019s always the place I start when supporting a new client. Margins erode quickly in consumer packaged goods (CPG), and all too often, I see emerging brands losing money on each product they sell. Yet, they operate as if they\u2019re making money just because they\u2019re getting new placements. Following are some key steps to ensure you are pricing your products correctly.<\/p>\n\n\n\n

\"Kate
Kate LaBrosse, Natural Products Industry Expert <\/figcaption><\/figure>\n\n\n\n

Step 1: Category market evaluation<\/strong><\/h2>\n\n\n\n

The first thing you need to do is a category market evaluation, which includes a competitive pricing survey. This step ensures you have a firm handle on what the right price is \u2013 for your category, and your specific product, while taking your positioning within the category into account. Using that target Suggested Retail Price (SRP)<\/a> as a baseline, you can work backwards to determine the exact amount you\u2019re making on each item you sell and what the margin contribution is to your bottom line, as well as ensure you\u2019re leaving enough room for retailer margins.  <\/p>\n\n\n\n

Understanding your category and the competing brands and products on shelf does more than provide a benchmark for pricing norms; it allows you to show up as a valued partner for retail buyers. When you speak to category norms, category leaders, breakout trends, and slow performers within your category, you show the buyer that you care about more than just getting placement on a shelf. When you take that a step further and clearly articulate your brand\u2019s positioning within a category and the opportunity the retailer has by bringing in your product, you\u2019ve set yourself apart from the competition. Now you\u2019re speaking the buyer\u2019s language and addressing their main concern: category performance!  <\/p>\n\n\n\n

There are some key questions you want to ask yourself as you complete your category market evaluation, including:<\/p>\n\n\n\n