So you just got a great deal on new Wish merchandise for your business, but how do you go about pricing it for your retail store? You want to price it high enough to make sure that you’re turning a profit, but low enough to stay competitive and keep your customers happy.
There are several approaches you can take when pricing inventory for your retail store. If you buy wholesale merchandise in bulk, you should be able to negotiate a decent discount that allows you a little wiggle room to test the market and maintain healthy profit margins. Here’s a few steps we recommend to help you find retail prices that work for your business:
Research Your Market
Take a look at your competitors’ pricing and the volume of inventory they carry in their stores. This data will give you a good starting point. If prices seem pretty consistent across similar retailers in your area, then you know you should probably stick in that price range too. If prices are variable across different stores, shoot for somewhere in the middle in the beginning and then refine your price as you gather more of your own data.
Analyze Your Costs
You always want to ensure you’re covering your costs and making a profit on top, so it’s important to calculate your cost of doing business. In addition to thinking about the price you paid for each item, you should take into consideration costs like shipping (for online retailers) and labor if you have any employees. These are costs that will increase the more units you sell, so you’ll want to make sure that you factor them into your pricing.
Calculate how much revenue you’d need to make to break even on these costs. You can then arrive at a good minimum starting price and make adjustments based on other factors, like competitors and availability of the product in your area.
Test & Refine
Once you’ve done your analysis and arrived at a price, it’s time to test your market! To give a new product the best chance of success in your store, think about what other products it might sell well with and where in the store it would best be placed. From there, collect data on product sales each month and use that to inform how you refine your catalog of inventory.
If you want to make life even easier, go with a Wish Best-Seller Box or Category Specific Box. When you purchase any of these boxes, we’ll email you a digital packing list which includes our suggested MSRP for each product. These products are our top sellers on the Wish shopping app, so these boxes are a great way to buy merchandise in bulk that you know will sell for your business. Click here to learn more.