Price Merchandise Strategically

When it comes to pricing your merchandise, there are a number of factors to consider before reaching that final number. That’s why the price may seem right to you, but without careful consideration, you could end up being over -- or under.

David Peters, Jewelers of America’s resident education and management expert, offers the following advice to help you properly price jewelry product:

• Shop Your Competition: Chances are you serve the same demographic, and you can gain insight from seeing what the competition is charging.
• Be Competitive With Popular or Easy-To-Find Items: Be extremely competitive on pricing when the product is popular or easy to shop elsewhere. Don’t give customers a reason to buy it from a competitor when it’s simple for them to do so.
• Consider Raising Prices on Hard-To-Find Items: If you’re offering something that’s unique that they can’t get down the road, price accordingly. Just be careful that these unique items fit your demographics, otherwise you’ll have a museum piece -- regardless of price.
• Understand What It Really Costs You: Analyze your true merchandise costs to include shipping and associated in-store labor expenses.
• Negotiate With Vendors: On a big sale where margins are tight, ask your vendor to reduce their price.