Pricing blog

Pricing blog

As an online press on nail business, finding the right formula for retail markup is one of the most important questions to solve for.

@vanillaabunnyynails suggest all of our client to sell nails based on a actual formulas to get the best profit.

The goal is to actually make a profit on every wholesale purchase.

The formula will determine how profitable your business will actually be and how clients perceive the value of your products.

There and many kinds of pricing types today I want to talk about 3….

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cost-plus pricing?

Cost-plus pricing is a pricing strategy that adds a markup to a product's original unit cost to determine the final selling price. This is calculated based on just two things:

💕Your cost of production

💕Your desired profit margin

All you do is take the costs that goes into building your product or providing a service to your customers and add a percentage on top for your profit margin. Every unit sold then provides the same revenue to cover your costs and your profit margin.

Suggest retail price for nails in this method : $30-$60

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What Is Value-Based Pricing?

Value-based pricing is a strategy of setting prices primarily based on a consumer's perceived value of a product or service. Value pricing is customer-focused pricing, meaning companies base their pricing on how much the customer believes a product is worth.

Value-based pricing is different than "cost-plus" pricing, which factors the costs of production into the pricing calculation. Companies that offer unique or highly valuable features or services are better positioned to take advantage of the value pricing model We see this in brands like Louis vuttion and Hermes

Suggest retail price for nails in this method :$65- $125

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What Is Competitive Pricing?

Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. This pricing method is used more often by businesses selling similar products since services can vary from business to business, while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which occurs when a product has been on the market for a long time and there are many substitutes for the product.

Understanding Competitive Pricing

Businesses have three options when setting the price for a good or service: set it below the competition, at the competition, or above the competition.

Above the competition pricing requires the business to create an environment that warrants the premium

Suggest retail price for nails in this method : n/a