How to Calculate The Price For Your Pet Accessories
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your pet accessories business.
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More Tips On Pricing Your Pet Accessories
How To Price Your Pet Accessories
One of the most challenging aspects to starting a pet accessories business is determining how much to charge for your pet accessories.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your pet accessories, it's critical that you first identify all of your costs and consequently mark up your pet accessories so you can factor in a profit.
The actual cost of your pet accessories may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your pet accessories, you'll want to create goals for revenue + how much profit you want your pet accessories business to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your pet accessories is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your pet accessories fits best in the marketplace.
All of these factors play an equal part in pricing your pet accessories, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful pet accessories business:
. Shed Defeder ($0/year)
Tyson Walters (from Irvine, California, USA) started *Shed Defeder * almost 6 years ago.
I’m Tyson Walters, the founder and CEO of Shed Defender. The company officially launched in October 2016, but I came up with the idea about 6 years ago and spent a few years testing out fabrics and designs so it’s been a long road to get to where we are today.
To date, we’ve sold over 30,000 units and generated over $1.7 million in sales. In 2019 were expected to continue growing and have some exciting new products in the works!
. Tuft & Paw ($3.6M/year)
Jackson Cunningham (from Vancouver, British Columbia, Canada) started Tuft & Paw almost 6 years ago.
My name is Jackson Cunningham and I’m the founder of tuft + paw. We’re a modern brand for cat people.
This year, we raised 2M dollars from some very well-known investors including Alexis Ohanian (founder of Reddit).
. COLLAR ($0/year)
Yuri (from Chernihivska municipal council, Chernihiv Oblast, Ukraine) started COLLAR over 27 years ago.
My name is Yuri Sinitsa and I’m the founder and CEO of COLLAR LLC - the pet products manufacturer. The main mission of the company is making pets and people happy. Our customers are pet parents all over the world who are fond of innovative solutions for their four-legged loved ones.
For now, COLLAR LLC is a constant member of APPA and a constant visitor of GPE. Its presence in the USA is constantly growing, now there are 77 companies that are good and faithful partners of COLLAR, 5 of them are wholesale retailers.
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