Pricing myth #2: You’ll make more sales by offering the lowest prices. Customers feel good about paying a little more for a leash or a dog bed because they’re supporting the family-owned businesses across the country that make products for H4Legs. Manufacturing stateside is a boon for brand loyalty, too. “Our customers recognize the value of a unique product, which allows us to stand out in a saturated sector,” says Krysak. Showcasing the words, “Made in the U.S.A.” helps H4Legs hold its own in a crowded and competitive marketplace. How does H4Leggings compete? By recognizing that customers in the pet industry are willing to pay more for U.S.-made products. We could make a lot more money if we manufactured and imported everything from somewhere else.” Yet Krysak, who is also a management consultant and owner of Krysak Industries, is realistic about the downside of this decision. Krysak is proud to say that H4Legs’ pet-related products are made entirely in the U.S.A. Reality check : “Made in the U.S.A.” is a powerful strategy for driving competitive pricing-and strengthening brand identity.ĭavid M. Pricing myth #1: You have to manufacture your products overseas if you want your company to succeed.
Samuel Tang is the owner of Joy Creations, a custom jewelry boutique in Ottawa, Canada. Kim Hawkins is president of Events Wholesale, a discount event- and wedding-supply company in Watkinsville, GA. Krysak owns H4Legs Brand Pet Products, a Minneapolis-based company that designs, patents, manufactures, and sells pet products including the best-selling medical wound dressing called H-Leggings. Spoiler alert: Their insights may surprise you! Meet our pricing myth busters:ĭavid M.
We asked three established wholesalers/manufacturers to bust four common myths about pricing-and to offer up a few reality checks of their own. In fact, competitive pricing takes more than just a mathematical formula or a deep discount. Maybe you’ve heard that offering bargain-basement deals or simply calculating materials + overhead + time guarantees your sales will soar. When you’re a manufacturer or a wholesaler, figuring out a sound pricing strategy can be tricky.
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