Updated: Apr 7
Pricing your products is probably one of the most difficult parts of running your boutique. You will be asking yourself over and over again: Are my prices too high? Too low? Will people purchase at this price? Etc. Trust, every boutique owner goes through this exact meltdown, you are not alone. Ultimately, your target customer and the quality of your products directly affect your pricing. Fast fashion brands like Fashion Nova are able to sell clothing at lower prices because the majority of their items are cheap quality. Many boutiques get away with selling cheap quality by using good marketing, however, your customers will be disappointed when their product arrives and can bring up your return/chargeback rate. Simply try to match your quality with your brand. What would you pay for your products? Of course you want to profit, but be reasonable. There is a thin line between comprising your prices when you know the quality and your costs are factored in and just wanting to become rich overnight.
There are several unofficial "official" methods used in the industry for pricing products and then there are you testing the waters with freestyle pricing. To each its own - there is no wrong way. Also, account for promotions and discounts because they will cut into your profits, but you may ultimately sell more. You are not going to please everyone, this is why it's so important to have a target customer. If you are not quite sure who your target customer is, a great place to start is by searching for your competitors' pricing. Below are the two most common strategies for pricing.
Keystone pricing method: Simple. Double the price you paid for the item.
Example: $7 wholesale = $14 sale price
Charm pricing: Adding .99 to all of your prices.
Example: $29.99 vs $30.00
Keep in mind, you can mix these strategies with your own twist. Often times you are able to get great deals on products and can sell higher than 2x the price you paid.