Pricing your products for distribution

Pricing your product for the market starts with the market and is part of your brand position. Within the target market, there are also tiered pricing, high, medium, low.

Retail pricing as mentioned is dictated brand position as well as the cost of developing your product. Cost Of Product is the actuarial cost of the product which includes the cost of the material i.e ingredients, packaging, etc. Cost Of Good includes the cost of the product as well as warehousing, shipping, etc. A review of competitive products in the select market is a must. One may choose new pricing that does not align with the market which can be justified by the product story, new technology, brand story. A distribution channel is also a key factor to consider when pricing your product. The margins when selling DTC can be significantly different than selling to retail so pricing your product should take into consideration your distribution channels.

What is the pricing range for the products your plan on selling? Are their products that buck the pricing structure, how do they justify their premium pricing within the category.