Do You Know Your Prices?

Do You Know Your Prices?

December 6, 2021

Long before he passed, my father would say emphatically that most people really don’t know their costs.   As the executive director of the WPMA, this has never been more true with all the companies selling products on Amazon.   At least 98% of the people tell me the most they can pay for an item is X, so that they can make the % of profit they are entitled to.   When I ask them if they have had any samples made by outside companies, I am told that they made one in their garage, and are so busy they cannot fill their orders. 

I will then ask them for their true cost of the item and I receive the “deer in the headlights look.”  A few people will take my advice, call around, buy some samples from an existing company, and call me back and say that they were selling the product below what they were charged (i.e. losing money).  But most will never return my calls.

For most companies that try to back into the selling price, I say, please learn what your replacement costs are.   US consumers do not care that your freight bill is now approaching $29,000 from Asia.   All they care is to be working with a company that will be around for them long term.