From the course: Selling Music Merchandise

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Determining your selling price

Determining your selling price

From the course: Selling Music Merchandise

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Determining your selling price

Pricing can be one of the most confusing pieces to the merch puzzle. How much is enough? How much is too much? Retailers have been going through this for centuries, so you're not alone. There are some basic concepts that might help, however. After you've determined your cost per item, the next thing is to determine the sales price of that item. One way is just to ballpark the price of what you think it should sell for, which is fairly unscientific and subject to errors that can cost you money. A better way is to add a certain percentage over your cost, which is called a markup. Let's say a tee shirt costs you $10. If you were to mark it up 50%, that would mean you'd sell it for $10 plus a $5 markup, or $15. Many businesses like to markup a small item by at least two or three times, or 200 or 300%, or even more. That means an item like a guitar pick that cost $0.25, can easily be sold for $1 or more if the market will bear it. On an item that costs you more, like our $10 t-shirt, your…

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