If you have just started a business as a reseller, one of the first things you’ll need to do (after selecting the products) is price up your inventory. It can be very tough to decide what prices to attach to your products so to help you make the decision check out the tips below.
Look at Market
One of the first things you need to do if you are trying to price your wholesale products is look at the market place. After you have chosen your products you should do some research on the market and find out what these products typically go for. Search for online retailers, visit high street stores and go to market places to get an idea of how much consumers will pay for the product. For example, if you want to sell MP3 players you need to go to an electrical retailer and look at their price list. If a consumer can buy an MP3 player in a main high street chain for cheaper than you are selling it then it is doubtful as to whether you’ll pick up any business! So do your research.
Look at Competitors
Your competitors will always be looking for ways to keep their customers so it’s important you find out how much they are selling similar products for and that you keep your prices competitive. Network, look at their website and look out for product updates.
Negotiate with Wholesalers
You will only be able to offer the best rates to your customers if you secure the best rates for your business. When it comes to working with a wholesaler you need to negotiate and try to secure as low a cost price as possible. Once you have built up a good working relationship with your wholesale suppliers you should be able to make some savings and increase your profit margin.
Review
Once you have priced your products it is crucial that you check their market value regularly. Review your prices every few months and adjust them accordingly to keep business.
