Business Owners’ Concerns About New Products & Branding

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Initiating a new product or branding a business is one of the most daunting experiences among entrepreneurs or business owners. Besides ensuring that the products are top-selling, a company spends ample time amid the planning stage to make sure the overall business is smooth sailing.

Most entrepreneurs or business owners are concern about the overall costing with other external factors such as the packaging, supplier and logistic. This article will enlighten every entrepreneur or business owner who is in doubt and wishes to bring the business to a whole new level. 

Costing

Costs have always been one of the top priorities in a company or brand that is concerning to most. With the usual cost inflation in the market of materials, packaging and logistics, SMEs will find themselves facing differences between their prices and the prices of business competitors from time to time. In order to substantially reduce costs to remain competitive, struggling on the basis of cost alone is challenging enough. You will distinguish the minimum possible price you can charge your clients or customers before taking any future deficit. Here are some basic steps that will shed you some lights on how to price or reprice your products.

1. Determine The Net Income Or Bottom Line

In order to formulate the price of your product easily, you should begin with calculating precisely how much the products or services cost you to make available for customers. It is one of the most mundane yet fundamental tasks to undergo.

  • - Establish the full material cost per item or product including shipping.

- Remember to include the cost of labour.

- Include the shipping and postage cost in the total charge of products.

- Analyse the fees of online platform or payment gateway if you are selling online.

- Take in other expenses such as business cards, wrapping paper and advertising.

2. Fix A Markup

The standard markup among SMEs is differed by business and the types of product or service a particular brand offers. It generally ranges between 30% to 50%. This markup should give your business the chance to earn an adequate profit but still allow you the room to increase it in the future as you build the reputation of the products.

  • - Charge a premium price for a better quality products.

- Research on the market price of sellers who sell the similar items.

- Consumer research and hand out samples to gauge customers' willingness to purchase.

3. Perform Calculations

Have no clues on how to calculate the pricing of your product? Here are 2 alternatives to help you to estimate how you can charge your future customers without worrying of encounter the common loss issues.

  • Invest in an online product pricing calculator

  • Product pricing formulas
      • Base production cost:
        Material Costs + Labour Costs + Shipping/Postage Fees+ Marketplace Fees + Misc. Expenses = Base Production Cost
      • Profit margin
        Base Production Cost x Markup = Profit Margin
      • Product price
        Profit Margin + Base Production Cost = Product Price

Packaging

Packaging of the products that business owners ordered from the suppliers, which are lower than expected, is one of the concerns among business owners. This is because the packaging will be the consumers’ first introduction to your product. First impression is vital, thus it is normal to expect premium quality packaging, then again sometimes the end-product from packaging supplier is disappointed. You should demand packaging suppliers to be consistent and meet your essential specifications or needs.

A good packaging manufacturer for your business should ensure zero colour fall and high durability. For more high-quality and sturdy packaging that keeps your worries at bay, click here to browse our services that bring every SMEs owner a lasting brand loyalty among consumers. Besides, read here to know why your business should invest in good packaging for your amazing products or services.

Suppliers

Good communication is the key to a successful business/vendor relationship. It is difficult at times for business owners to get trusted suppliers that cater to their needs. In order to make sure the supplier is a good fit for your operation, every business owner should go through the capabilities below, which we are able to offer you as well in order to move your business forward.

1. Sales representative who listens attentively to your questions while provides satisfactory answers and solutions that clear your doubts.
2. A versatile supplier that brings solutions that cater to your budgets and needs in a pinch, whilst helping you to make the best decision for your business.
3. Your ordered end-products are manufactured with high-quality material with innovative machinery and technologies.
4. High-speed delivery that guarantees secure trip from supplier to your doorsteps, make certain that you are able to serve your consumers on time.

Logistic

Timeliness is vital in every business. A slight delay in productivity can cause significant financial loss among business owners. A fail logistic deliveries cause worries as it might lead to a delay in the product launching date. Thus, SMEs should attempt to partner with the right logistics to minimize the overall costs.

Besides lowering the risk of deficit or loss, choosing a good logistic platform will assist you in delivering your products to your consumers on time. Your consumers will feel satisfied with your overall fast service and have a better impression of you. Furthermore, you should make certain that the customer services of the logistic platform are up to the mark and willingly to help those who called in

EAN Label provides every business owners and entrepreneurs with a better solution when it comes to your needs in product packaging. We have the capabilities to provide you with our most sought-after premium, high quality and durable product packaging in a shorter lead time.

We look forward to partner with you. Contact us NOW to learn more about how we can and bring your business to a new high.

 

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