Pricing Part 3: Putting it all together

Alright, the final part of our pricing series is here! I know it might feel like a lot of information, but this is where everything comes together, and where your competitor market research* comes into play.

You might be thinking, “You said not to use competitors’ pricing.” You’re right—don’t copy their prices. Instead, use their pricing as a tool to gauge your own. For example, if your competitors are charging $25 per candle, you can use your formulas to show that your candle is actually worth more than $25. Pricing your candle the same as theirs would mean losing profit on every sale. However, their pricing gives you a benchmark to see where yours fits in the market.

Maybe your candle is bigger, or uses more expensive or organic ingredients, or your jars are reusable, and your wicks are non-toxic. These are all selling points* that justify the higher price.

So, what would be the perfect price in this situation? $42.00

Here’s how you get there:

1. Find the average of the high and low prices for each candle. Let’s say you have four numbers: $29.25, $44.25, $39, and $59.

2. The average of these is $42.87. To keep it simple, you can round it to $42 per candle.

   
   

Now, let’s talk about the psychology behind pricing. Some customers might think, “$42 for a candle? No thanks.” But here’s a trick: drop the price to $39, which is the lower end of your profit margin. This makes the candle appear as $30 instead of $40 to customers, encouraging more purchases.

By strategically setting your price, you not only cover your costs but also make your candles more attractive to buyers.

*The Hustle Smarter: Build Your Dream Business Course is launching on March 1st!

In this course, you'll learn how to conduct market research effectively, drive consistent sales, and identify your unique selling points. To determine if the course is right for you, please fill out the form below.

Hustle Smarter Course

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