If you own a business, you know that promotional products can have a significant, positive impact on your company. Promotional items raise brand awareness to stimulate sales among both current and prospective customers. Plus, promotional products can help establish your brand’s reputation so that you can be set apart from your competitors. All in all, promotional products are an excellent investment in your brand.
That said, many business owners struggle to decide on pricing for their promotional products. Pricing any product is a delicate balance between competitive pricing and making a profit. How do you lure customers with a low price without compromising on your bottom line?
While the right pricing for your Denver business’s promotional products will be unique, there are multiple strategies that you can implement to ensure that the branded items are a hit.
The Benefits of Promotional Products
Helps Establish Your Brand
One of the key benefits provided by promotional items is brand visibility. An item like a custom T-shirt, for example, will be doing the work of improving brand visibility for you the customer goes out in public wearing the shirt. This will increase exposure to your brand so that it can be more easily recognized.
Startup companies don’t typically have large advertising budgets. So, finding effective advertising that’s affordable can be a challenge. Promotional products can fit this bill. Custom T-shirts created with Denver screen printing services provide excellent bang for your buck, especially when you order in bulk. As customers use your promotional products, your logo will be circulated without you having to pay for advertising space.
Strengthen Your Customer Base
Promotional products can be the thing that sways customers to choose your business instead of one of your competitors. Plus, Denver promotional products show your customers that your business is professional and well-established. This can make a sizable difference as your customer base grows and you work for customer retention.
Gaining leads for new customers can be a difficult task for new Denver business owners. Promotional items are a great (and simple) strategy for developing new leads. Displaying your logo on high-quality, desirable products can attract customers to your brand and encourage them to purchase your main product or service. Additionally, promotional products will start a conversation with prospective customers, giving you a chance to hook them on your offerings.
Pricing Your Promotional Products
Pricing promotional products is where many business owners stumble. Many factors must be considered in this decision, making it tricky to create a perfect balance. That said, start off with the idea that it’s okay to make mistakes. While you should put plenty of thought into the initial price of your promotional products, there’s no harm in having to make adjustments later down the line. After all, businesses are constantly evolving. It would be foolish to assume that the right price for your products will remain the same as your business grows and changes.
To get you started, we recommend a reliable pricing strategy involving:
- Your variable costs (broken down into the cost per product)
- Fixed costs
- Profit margin
When you factor these elements into the pricing of your Denver promotional products, you’ll have dependable a number to start with. From there, you’ll have to remain tuned into the sales and make adjustments if necessary.
The variable costs are the costs required to produce and sell the products. This includes the raw materials, production costs, packaging, and the time that you spent in the process of selling the products.
Fixed costs are the expenses that are required to run your business, no matter how many products you sell. Examples include rent payments, salaries, utilities, etc.
An underlying goal of any business is, of course, to make a profit. So, you’ll need to build a profit into the price of your promotional products. You can calculate this as a percentage of the variable cost of the products. In determining the percentage to use, do some research on what your competitors are charging to ensure that your price is fair and competitive in the market.
Denver promotional products can provide an invaluable boost to your business. Contact Rocky Mountain Apparel today to place an order of customized, branded products.