How do I price my skincare products to be profitable yet competitive?
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Hey beauty boss! I asked Chat (my virtual assistant Chat GPT) what the top 10 questions business owners ask, specifically in the skin care industry, are during the first 3 years of business.
How do I price my skincare products to be profitable yet competitive?
That was the #1 question, and I'm glad it was.
Regardless of how many products you sell, how many customers you acquire, or how visually appealing your brand is, the ultimate goal should be to achieve profitability. Hence, why we don't call it a hobby, but a business.
In my first year of running my business, I was in the red a few thousand dollars. The second year, it was a little bit less. And by the third year, I was making a profit.
What changed?
I figured out my cost per good down to the penny. I learned what a profit margin was, and determined where I wanted my margins to be. I raised my prices after learning I was pretty much giving away products. Lastly, I began to monitor my material costs so I knew when to raise (or potentially lower) the product prices.
So many business owners desire a profitable business, but they are focused on the wrong stuff. Unfortunately, they think they have to launch more products and overwork themselves to sell out, to make any money. That's simply not true. You can make money without adding more products and without selling every single thing you on your shelf.
If you are interested in learning more about pricing your products - click here to learn more!
With love,
Danielle
Owner of Naturally Created Wholesale
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