We have a statement on our website's homepage that makes some potential customers curious: Prices That Make You Happy. It is not just a marketing phrase to us. It is one of the fundamental principles by which we do business.
If you are not sure what we mean by it, you're in luck. Though we have discussed pricing from many different angles in previous posts, this post will be dedicated to explaining the concept of 'prices that make you happy'. Let us get started.
We Both Sell the Same Product
Olympic Eyewear sells bulk sunglasses at wholesale prices. You buy them from us, mark them up, and sell them to your retail customers. We are both selling a product. And in fact, we are both selling the exact same product. We just buy and sell at different levels of the supply chain.
Both your business and ours need to make money to stay in business. The big question is this: how much money do we make? Because if it's not enough, there is little incentive to keep doing what we do. Therein lies the key to prices that make you happy.
You need to be able to purchase wholesale sunglasses from us at a price that doesn't make it difficult for you to earn a nice profit. Think of it as being similar to playing the stock market. You want to buy low but sell high. When you are purchasing bulk sunglasses, you want to pay as little as you can in order to maximize profits.
Profit Is a Mutual Goal
Profit is a mutual goal for both our companies. So just like you want to buy low and sell high, we also need to control how much we spend to acquire the bulk sunglasses we sell to you. We essentially need to buy low and sell high as well.
We are happy when we can sell at a high enough price to earn the desired profit. But we know that if our prices are too high, you are bound to shop elsewhere. You are going to buy wholesale sunglasses from whoever offers the cheapest price. It is a balancing act for us.
You face the same balancing act. Your retail prices need to be high enough to reach your financial targets. But if they are too high, your customers will go elsewhere for designer sunglasses.
Setting Your Final Price
By offering prices that make you happy, we give you enough room to establish a competitive retail pricing model. As for how you set your prices, we assume you are paying attention to the usual things:
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Margin – Margin is the percentage of total revenue that equals profit. You have a particular margin you hope to reach every month. You may have to adjust your pricing to hit those targets.
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Supply & Demand – Retail is driven by supply and demand. You can charge higher prices for hot products. Likewise, you may have to reduce prices on products you are having trouble moving.
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The Competition – Perhaps you look at what the competition is doing when setting prices. You wouldn't be the first retailer to do so.
We fully understand your need to establish a pricing structure that meets your business goals. We don't want to hinder your efforts in any way, which is why we are committed to prices that make you happy.
When you are happy, you're likely to buy more wholesale sunglasses from us. The more your customers buy from you, the more you will need our sunglasses to keep them happy. Everybody along the supply chain wins.
