Pricing your swimsuit line is one of the most crucial steps one has to carefully consider when venturing into the swimwear business. You have to get it right the first time since changing your products' prices at a later stage will not sit well with your consumers who had grown used to a specific price range for your products.
You have to choose the rights pricing method that will help you make a profit. To better understand where your swim line sits on the market will also help determine the price, will it be a luxurious brand or a budget brand?
Here are two methods that will guide you on pricing your swimsuit line:
- Keystone Pricing Method
It is a simple pricing method that won't take much time and effort. With this method, you calculate the manufacturing cost of one swimsuit and multiply it by 2, which helps you get the swimsuit's wholesale price. You then multiply your result with 2.5 to get your retail price.
- Demand-Backwards Pricing Method
The method is whereby prices are settled on by determining what a consumer is willing to pay for a particular brand; manufacturing costs are then deducted to see if the profit margin is viable.