Four Key Pricing Strategies to Price Your Clothing Line Right

Setting up your business is one step; however, to find your footing in the market and to attract buyers, there are a whole lot of things that you have to consider. Pricing your clothing line right is an imperative step, which we will discuss in this article.

When it comes to setting the prices of your products, especially if you are in the clothing retail business, you have to understand that it is a balancing act. You can’t go too higher as it will push away a large segment of buyers, and setting it too low may make your clothing line be seen as under-par in quality, and it will also cut through your profit margins.

This is where you have to do your homework well. Right from finding top bulk wholesale clothing suppliers that are price-right for your sales to factoring in revenue goals, ensuring quality in product, and meeting competitor pricing, there is a lot that you have to work upon.

So, how you should set your clothing line pricing? Follow the tips appended below:

1.   Manufacturer Suggested Retail Pricing

As you would have deduced, this strategy means setting your product price as the manufacturer recommends. Many retail businesses run on this model, and thereby you would see different stores of shops having the same price for the same product.

2.   Keystone Pricing Strategy

This strategy is a quick and easy rule of thumb and is a kind of mark-up formula wherein the retailer simply double the wholesale cost to set the selling price of a product. However, there are several factors that you would have to look into. For a product with a slow turnover and other costs like handling, storage, and shipping, the profit margin would be short. In such a scenario, a retailer could look to set higher pricing for a certain product. One other factor to consider is to look at competitor pricing. If they are selling the same product for less, you would have to set it up to that level to market your product to the buyers.

3.   Beating the Competition Pricing

This one is also a simple and effective way to price your product. You simply do some research on your competitors to understand their pricing pattern and how they keep increasing or decreasing the selling price (inclusive of discounts etc.). Now use that data as a benchmark and set your pricing to match their or even a bit lower to attract buyers. However, ensure you don’t set it too low as it isn’t the best approach.

Another way is to top your competitive pricing and put it above and then market your product as a premium class. This helps to attract buyers who are more inclined towards the quality and sales-support factor.

4.   Psychological Pricing Method – Kind of Charm Pricing

You would have come across this many a time. For example, you see a product priced at $9.99 instead of $10. This is what charm pricing is. And number 9 in this strategy has the most effect on increasing sales.

Apart from the above-mentioned strategies, you can follow other methods too when searching for plus size wholesale vendors or other fashion clothing line, like anchor pricing: having a reference point for shoppers, discount and penetration pricing, multiple-product or bundle pricing.

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Created on Jan 18th 2021 01:54. Viewed 221 times.

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