From the course: Pricing Strategy Explained

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Setting your price: case study

Setting your price: case study

From the course: Pricing Strategy Explained

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Setting your price: case study

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- So we're going to go back to our example Bolsa Design and our backpacks. And we're going to see how all of this data aggregates together to create a clear price on what should our price be? What should I really set that price at? So first thing is competition which we looked at awhile back (laughs) and we found the sweet spot between $30 and $39 on average for pricing for backpacks in this market space. So that's a good data point for us to use. So let's take a look at our direct margins for Bolsa Design. And so our margins calculated at 53% so we're above the industry average, we're above the kind of the standard which is good. And actually our price is set at $38 right now based on that 53% margin. So we can actually even go a little bit lower to $36 and still be kind of in that acceptable range of margin. So we have some margin flexibility there which is actually good. Now we're also going to take a look at our…

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