I finished a prototype of my product.
Each unit costs $75.28 (in future runs I can get this to $50-60, but I'll use the proto costs for initial number crunching). But, what should my final retail price be?
Are there any rules-of-thumb I could use to find an appropriate markup? I have a good idea of what this could sell for, but I want to make sure that my retail price isn't going to make me lose my shirt.
Also--while I don't want to leave money on the table--I do want to price for a big initial injection of cash and to capture marketshare. Am I accidentally treating my price as a marketing strategy?
Range for my product should definitely be between $229-$349, and most of my sales will be through my site vs wholesale (70% to 30%). Since I've shared so little info on the product itself, I definitely am not expecting hard numbers... mostly ideas on hueristics for markup from COGS to retail price, and if I should position myself in the upper part of my range, or the lower part.
Each unit costs $75.28 (in future runs I can get this to $50-60, but I'll use the proto costs for initial number crunching). But, what should my final retail price be?
Are there any rules-of-thumb I could use to find an appropriate markup? I have a good idea of what this could sell for, but I want to make sure that my retail price isn't going to make me lose my shirt.
Also--while I don't want to leave money on the table--I do want to price for a big initial injection of cash and to capture marketshare. Am I accidentally treating my price as a marketing strategy?
Range for my product should definitely be between $229-$349, and most of my sales will be through my site vs wholesale (70% to 30%). Since I've shared so little info on the product itself, I definitely am not expecting hard numbers... mostly ideas on hueristics for markup from COGS to retail price, and if I should position myself in the upper part of my range, or the lower part.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
