How to correctly Price your retail Product/goods? Usually retailers go to different cities in search for the goods and products from different wholesalers. They don’t know at what price to sell their retail products. Fashion trends are influenced by many political, economic, social, and technological factors. All these factors confuse a retailer what price to sell the product. Due to emergence of online portals it becomes a difficult task for retailers to set profitable margin. As the product you purchase offline for Rs.200/- is available online at comparative cheaper price because they cut off middlemen. For instance if you purchase a kurta for Rs.300 per piece from offline retailer and you find same kruta with better quality online for much cheaper price say 210 per piece. You would repent on your purchase made. As online wholesalers eliminate the degrees of middlemen cost. One of the secrets to business success is Price your product in proper manner that will indeed enhance your sales. How much products have you sold it depicts that. If you get your pricing strategy incorrect, you may unwantedly create problem that your business may not be able to overcome. There are different types of strategy for different kinds of business. However there no rocket science formula for these strategies. Pricing your product correctly involves considering certain key factors. Your target groups, tracking how much price your competitors are charging and understanding the relation between demand & supply and price & quantity in the business market.
Here are some key factors to be kept in mind for pricing your product: Get clarity about deep pockets: making money means generating enough sales of your products. So that you cannot just cover your cost, but also make a profit out of it and expand your business. Biggest mistake many business retailers make an assumption that sales alone can generate sales. 1stly you need to understand the selling price depends on function of your ability to sale. For instance Biba and Fab India they both sell the same product but the way of communicating and selling their product is way different. Poor pricing decisions can be risky for your retail business. Low pricing: Pricing your product for too low cost can be disastrous and can adverse impact on your bottom line. Many retailers price their product at least cost just to impress and convince their customers that whatever
they are buying is cost effective and least expensive than the alternative competitors product, hoping to drive the sales upward. It’s perceived ‘cheap’ in minds of consumer. As consumers want to feel that they are getting their earned money’s worth. Saving on a particular product is a ‘cherry on the cake’ for customers. Reducing prices to the point where you are giving away the products for least price will not be beneficiary for your retail business. High pricing: Over pricing is just opposite of low pricing of products for your business. Buyers will always look up to your competitor’s products price. “Pricing beyond the customers desire to pay can decrease sales” says Laura willet business analysts. People will be tempted to low priced products, if the prices are high customers will just walk out of your store. Put yourself in your customer’s shoes and think according to them. Always take their feedback and ask them how you can improve? Quality or price what is up in your list: It’s important to understand your product, the value of your product increases as more and more people use it. Simultaneously quality plays an important role besides price. You may also want to be known for giving quality product besides low cost. Deeper dig into your business pricing: Customer is the king of the market and customer satisfaction comes first it’s a successful mantra too. Taking your customers feedback and conducting market research can help you understand your customers well. If you can’t afford market research, then look in at your customers in terms of distinct groups- price sensitive, the convince centered and status centered, then figure out which segment you are targeting and then price accordingly. Set your own revenue target: You should set your own target for how much profit you want out of your business sales. Take that revenue target, depending upon factors cost incurred in your buying/purchasing of products. If you purchase offline then you will need to sum up wholesaler price you purchased product, your channels of distributing cost, traveling cost incurred. If you have purchased it online you can set high margin as online eliminates the channels of distributing, it connects the manufacturer to retailer. Know your neck to neck competitors: Always keep check on your competitor’s actions, to how will your competitor react & respond to your products when you get it in the market and engage in price wars. As different size fits different people not the same size fits everyone, similarly pricing is also concerned with your products based on fixed markup cost.
On what grounds you should increase or decrease price your product: How much your customers are ready to pay? Your competitors pricing strategy? How your customers perceived your product? Are the customers purchasing your product over the competitor product? Is your product gaining more demand? Estimate your sales volume Once you start analyzing your products profitability, you will understand which product are working in your favor and which are not working, so you can immediately stop those products. These products from which you are not gaining any sort of profit you can stop them immediately as these void products takes your times and effort too. To your surprise you might be shocked to know that these void products which are not generating profit nor even break even to that extent. Review and revise your cost/ price regularly. If you are not selling right, it’s probably because you not buying the right kind of products for your store. Mover ever you will find it hard time to sell these void items at a profitable income.
When to increase the price of the product and how? Keep tracking new prices, new offers, and combination of satisfaction & perks you give to your customers that will help you sell more products at better prices. Track new offers in every 4-week pull your customer’s attention towards you and your product. Offer them with some wowsome special services then measure the increase and decrease in your sales volume of your product you sell. The total of Gross profit you earned from it, and the total money you generated out of it. It’s part of business life that some or the other day you will have to raise the prices from time to time for your survival in the market and business world. If you don’t do so it will become impossible for you to survive. Constant monitoring is required for your prices, and cost for you to survive in the competitive market. After you make changes in your prices of the product, immediately check the sales volume. If your product prices are too high consumer will immediately react to it. Slit changes in your prices and your customers are
positively willing to buy at the price set by you for your product then your competitors will also follow the trend in price war.
When to decrease the price of the product and how? It’s customer’s general perception if your product price is too low, your product will be of poor quality. Pricing high for a product may lead you to loose on your core audience. You can attract your customers by free sampling-just for trial basis on purchase of particular product or by fixing up some amount or by giving them rebate so that more and more footfalls come in your store. People are generally attracted toward rebate or if you give them something for free. Giving them rebates or keeping some special offers you will attract your core audience without lowering prices. Plan out strategically when to raise the prices, when to lower the prices, when to give rebates and introduced special offers. Track your competitors activities, how she/he is playing with the prices in the market. Measure and monitor price & profitability twice a month. ‘People participate what you consider’.
Welcome note to our retailers: We are pleased to express our sincere gratitude to all you retailers, to choose WholesaleBox B2B wholesale portal. We feel highly honored that you have chosen us to fulfill your business needs and we are eager to be at your service. As you know we carry everything at WholesaleBox to meet your retail needs. We have a great variety of products to meet your competitive prices & needs. We have products at very low cost; at factory price…. Especially apparel line like wholesale dresses, wholesale kurtis, saree manufacturing etc. WholesaleBox offers a retail program that offers wholesale discount to approved retailers. Higher margins are achieved through a wholesale pricing based on bulk purchase sale. We are Glad to visit you at your convenience to meet our needs. We are at your service 24*7. We are just a call away (store locator) 0141- 4049163 (whatsapp) 8696491521. We thank you for choosing us to supply your retail business needs. We look at long and successful association in future.
About us: WholesaleBox
WholesaleBox is a marketplace for wholesale buying and selling across India.
Connecting Manufacturer to wholesalers or retailers across India. Efficiency in the whole distribution system to help retailers get more variety at door step. Web interface to buy products for retail outlets Retailers don’t have to travel to different cities to buy a particular product from the wholesale. Entire wholesale buying process online to drive incremental revenue , cost cut improve their customer experience and analyze performance through data analytics
We bring you the best prices as we operate at very low margins
Lowest price - at factory price Best price rate as we operate on low margins Save 25% - 30% of the procurement cost i.e. a) supply contract administration b) inventory control system. Convince of e-commerce like cod, home delivery, easy return, value for money with respect to quality.
How do Wholesalebox works
Wholesalebox is an online platform where retailers/shopkeepers can buy hassle-free. Reduce procurement cost at better quality Retail order products in bulk for reselling order delivery by Whosalebox at door step. Ordering process :
Ordering process:
Delivery Information: We allow shipping of goods via India’s leading courier brands such as
Shipping via India’s leading courier brands FedEx GATI Klut DTDC BLUE DRAT
All these are track-able most of the time. Allows the shipping through cargo and the facility to pick goods from the office and store locater.
WholeSaleBox offerings: Cash on delivery Track-able courier services Delivery time: Surface delivery options, air delivery, services at extra service station Easy return and exchange: Return within 48hrs exchange within 15days
No hidden prices No hidden cost We work with transparency
We do everything with our core value of honesty, hard work and trust
10 Benefits of choosing WSB (wholesaleBox):
1. More profitable market: WholesaleBox selling products provides relief to the retailers, by removing the need of middlemen and markup fees of the third party person. This gives the manufacturer a window to sell his products at his own price.
Connecting all manufacturer to wholesalers or retailers across India. Providing efficiency in the whole distribution system to help retailer to get more variety at doorstep Web interface to buy products for retail outlets.
2. At your Convenience: We at WholesaleBox display all the
products and items on the website making the process easier for the retailers to such extent that even women can part take in it. Thus making the sales good and good sales making high profit. Entire wholesale buying process (online) to drive through incremental revenue, cost cut, improve their customer experience and analyze performance through data analysis. Changing the way of tradition wholesale business operations to opening up host of business to business ecommerce platforms. You save much time.
3. Save on procurement cost: WholesaleBox permits the customers or retailers to buy hassle free and improved procurement cost. At the best quality at your doorstep of ordered products. Save up to 25%-30% of the procurement cost (a) supply contract administration (b) inventory control system The process of Procurement Is often part of a company strategy because the ability to purchase certain materials will determine if operations will continue. Convenience of e-commerce like COD, Home delivery, easy returns, value for money with respect to quality.
4. Travelling cost saved: Buying from WholesaleBox will save your travelling cost, and there will be less commission added to your product.
5. Business is not disturbed: In case if you are traveling to get product for your outlet from different cities. In your absence your outlet helpers will look after your business… assuming loss in sales. WholesaleBox offers you a wide variety of product range at one portal so that you and Your business doesn’t needs to suffer Work more efficiently and grow your sales and business.
6. Fresh stock updates: It’s very important to keep yourself
updated with the latest trends in the market, with trending fashion and also as to what your customer wants. WholesaleBox keeps you updated with the latest trends in the fashion market anytime, anywhere.
7. No Gender discrimination: In India, traditionally if you go to see
it’s a male dominated country. WholesaleBox gives a fair chance and motivates women to participate in the business by rational buying decision process. Women feel comfortable in the process as they don’t have to travel to different cities to gather products for their business.
8. Better flow of money in the business: Retailers have to
borrow money from sources to purchase their goods. Some retailers purchase their goods without instant payment. WholesaleBox provides credit facility, instead of ordering in bulk retailers can order products and goods in small quantity at low amount so that they can be updated with trends in market so that they can avoid dead stock.
9. Updated with industry knowledge: A positive competition is
necessary for your growth in the business. WholesaleBox provides you with a platform of such a fair competition, you can compare your fabrics, pricing strategy which your competitors.
10. Opportunity to expand: With new & updated products and
trends in market you can have the opportunity to expand in terms of traditionally offline retailers. WholesaleBox is one such B2B platform.
How do you make account with us? It’s a very simple and easy process of making an account with WholesaleBox. For creating an account with us, you just need to go to our website, click on Sign in/ Sign up. There you need to “Enter your mobile number or Email”. You can either register with the mobile number or with the E-mail.. To verify your email-id we will provide you with
one time password (OTP). Then you need to sign up and fill in with
your details we need. After you have given your basic details ‘your personal Wsb account will be Active’. You can do the following
My order Edit information Change Password Edit bank details My Returns Credit note Address book Short list Logout
WholesaleBox business model: This is how you save 25%-30% on procurement
Manufacturer : product cost : WholesaleBox : Retailer : SHOP WholesaleBox is leading online wholesale supplier with aim to provide goods directly from the manufacturer to retailers at lowest factory price.
WholesaleBox offerings: Shop now 2% discount on every prepaid order 3% discount prepaid order of Rs. 25,000 & above 2% cashback purchase form our app cash-back for your next order, within 7days
Set your own margin: (WholesaleBox offering) The margin price is difference between selling price and cost price. WholesaleBox allows you to get more profit margins on product, with different cost. For this go to Setting and click on ‘your store margin’. If you want 75% of markup price for 100% item then enter 75% on the given box update. This will increase the price of every product in your application by 75%
In this manner you can set your own margins (profit) for each of your customer. MARGIN 70(%) Eg: Price at WSB app Rs. 100 Set your margin to 75%- Then price on your personal store app will be Rs.175
Conclusion: Consumer behavior is essential while pricing any product. Pricing often has a very significant sense for positioning of a product. Once you set the prices, consumer will oppose to a great extent if any changes are made in prices, especially higher prices. It’s important to understand consumer behavior. Some consumers are prices sensitive, they will buy only during sales. There are some brand loyal customers, who are ready to pay any cost for particular branded product they won’t switch to any other brand or product. Consumers simply switch brands when brands go on sales, as it doesn’t pinches their pockets. Are consumer aware of price? A large number of consumer don’t pay much attention to price of individual product. That doesn’t points out the shortcoming of consumer’s perception on price. Since consumers make some speculations about the overall price on levels of stores, hence some stores has some sort of inducements to maintain reasonable overall price. Understand the relationship between price and quantity demanded in the market as well as the cost include the cost of products you purchased from manufacturer will help you in making accurate price decision. Retailers generally attempt to raise profit for good revenue for many products. It’s already looking like that the online shopping is playing significant key role in the revolution of shopping. Wholesalebox has given a modern and innovative platform to wholesale industry. Wherein retailers can shop from their product catalog at low factory price and retailers can set their own margin. Wholesalebox also gives you the facility of Dropshipping. WholsaleBox selling products provides relief
to retailers, by removing the need of middlemen and markup fee of the third party person, this gives a manufacturer an opportunity to sell his products at his own price. Customers and retailers can buy hassle-free and improved procurement cost. At best quality at your doorstep. No hidden cost, no hidden price we work with transparency.