Are you starting an online store and want to maximize your profits? Starting an online business is exciting, yet there are a few key things to consider when it comes to pricing BIOLabs PRO® products. The most important is that you find the perfect pricing point for your brand and target market.
Setting your prices has as much to do with fixed costs as it does with how you position yourself in the marketplace. Your position may be as a budget brand that provides a high-quality product at a fair price. Or you may be a high-end brand, and pricing your products needs to reflect your clientele.
Regardless of your brand position, BIOLabs PRO® has a 5-step Pricing Strategy that will help you get the best prices for our products and make a profit.
When you start an e-commerce business, you need to look at five steps as part of an overall pricing strategy and business plan. These include stock, costs, marketing, reinvestment, and profit. All of which results in the perfect price point for your business.
All products have variable costs, but one fixed fee for any business is the cost per unit (CPU). CPU is the starting point when beginning to price products to sell online or in your office. Buying in bulk or wholesale prices are usually lower than buying a single product. Entering into a Wholesale Partnership with BIOLabs PRO® ensures that you can receive discount pricing.
Whether in a virtual marketplace or a brick or mortar store, any business has additional expenses other than the initial CPU price.
For those with an e-commerce website, your monthly expenses include everything from initially creating the store with a website builder to web hosting fees after it’s finished.
You're also going to have to credit card and bank account processing fees. Each payment method will have different types of fees that can hurt your profit margins. Other expenses to consider are the shipping costs. Drop shipping is more expensive than ground, and customers are starting to expect cheap and fast shipping.
Some of the same expenses apply to a physical store as well. But you may also have higher labor costs, rent and utilities, and business liabilities to consider. All of which must be added to your perfect price point.
When starting an online or in-store business, you need to have a solid marketing strategy in place. Your plan may come from your target market and how to reach them best. Older people tend to hang out on social media sites like Facebook, while the younger generation prefers Instagram and Snapchat. Understanding your customers will help you narrow down your marketing goals.
Once you've done your market research and come up with your digital marketing strategies, you need to choose how much money you can spend on online marketing. You may choose to add a blog to your website to increase traffic through content marketing. Or place targeted Facebook ads to reach your customer base.
Regardless, the advertising and marketing cost needs to be added to your price for each product sold.
After you've calculated your costs for advertising and marketing, you'll need to look at the expense of future stock reinvestment. Once you start selling your products or run out, you'll need to make sure you stock up on BIOLabs PRO® products to meet customer demand. Our wholesale prices beat the competition every time.
As you start an e-commerce business, you may have to initially allocate a large portion of your profits to stock reinvestment. If you're not making enough money to cover future stock reinvestment, raising your prices may be the answer.
The last step in the pricing strategy is to look at your target sales and desired profit. Retail pricing must always include the total costs with the needed profit. Products priced according to market trends also help you set your price correctly.
You can use a pricing calculator to run the numbers to make sure your product is priced correctly for your target market and getting the profits that make it worthwhile.
When you consider stock price, expenses, reinvestment, and profit, you're going to have a pricing strategy that works for you. The result is a perfect price point that ensures your set prices cover expenses plus a nice profit. If costs are eating into profits at any point, it may be time to revisit your 5-Step Pricing Strategy.
It may be that your stock costs have gone up or shipping costs have increased. It may mean you need to reduce your stock reinvestment until you sell more. Remember that pricing is never fixed forever and needs to be revisited as markets and fixed costs change.
BIOLabs PRO® offers different wholesale partnerships for small to large business owners. We also work closely with doctors, naturopathic health practitioners, and other healthcare practitioners who want to start selling our products online or in a store or office. Right now, we offer many different partnerships.
This partnership gives small businesses a unique pricing code for 20% off each CPU. This partnership is for online companies or doctor's offices who want to buy ten or more of our products.
If you're planning on purchasing 100 units or more and want better pricing, the Larger Wholesale Partnership is right for you. Both parties sign a wholesale agreement to solidify the deal.
For even further support, BIOLabs PRO® offers Private Label Partnerships. As part of this package, you use your private label and brand with our products. We can even provide marketing and design advice and support if needed.
If you'd like to rely on BIOLabs PRO's brand name and our own marketing materials you can set up an affiliate account with us. Simply set up your own personal code and refer your customers to our website with a personalized coupon code. Each time someone uses your custom code you will receive a commission and you won't need to worry about carrying any inventory.
Regardless of which partnership you choose, know that we can help you get the best prices for our products and make a profit. Contact BIOLabs PRO® now for the complete guide on how to sell successfully.