Like I mentioned here, I will be sharing these tips based on my experience. When I started my fashion business, my target market was just students. I tried to reduce my price as much as possible just to encourage them to patronize me. To be honest, I still got normal sales; nothing out of the ordinary. I sat down one day to do a review on the number of sales I had made so far and the kind of people that purchased the products.
What I found out was that; they bought it not because of the price but because they liked it.
Even after I had figured it out, I still didn’t change my prices; still hoping it mattered. Then I went for what I can call a masterclass, I had a one-on-one with Mrs Isioma CEO Greyvelvet stores. She smiled when I told her I am a fashion entrepreneur; because she believes there are too many of us. The first question she asked was the price range of my products, I replied by saying #3,000-#10,000.
And she shook her head and said ‘who sent you’. I was shocked, I didn’t understand what she meant; so she explained. The prices are too low, hence I probably don’t have enough money for PR and standard marketing. She further explained that the fashion world is like an ocean and there are so many fishes, for me to stand out I need to pay good money for marketing. She asked me how many clothes I will sell before I can make my first million and it finally dawned on me.
Here’s a run down of how to price your products
If the production cost of a piece is let’s assume #3,800 depending on what you produce. You should sell that product for about #7,500. Your profit is #3700, to some people it looks much but wait;
Set aside #1500 for running the business
Set aside #1000 for your next photo shoot
Set aside #700 for social media promotions and online store.
After this break down, does the profit still look much? This is obviously for a start up like mine, that doesn’t need to pay rent and other bills attached to owning a store. Imagine you sold the product for 5k, your profit per sale will be #1200. You will have to sell at least 3 to make the profit of #3700.
Is it not better to sell to that 1 person that appreciates the product, than for you to be hustling for 3 people that you’re not sure will even buy.
Thanks again for reading and as usual I hope you found the tips useful. Let me know what you think in the comment section 😊