Wednesday, 1 June 2016

Pricing on my website vs retail stores. Seems so complicated.

 

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I'm a coffee roaster and I've been a wholesaler for a long time. Now I'm getting into both online and in-store retail - suddenly things seem complicated. I'm confusing myself about pricing.

Can/should I price my product (coffee) lower on my own website than my retail (grocery store) customers are selling it, or will they find out and boot me?

Example: Grocery store coffee is about $10 for a 12 oz bag (~$13.50/lb), $7 wholesale (~9.35/lb). I'd be pretty happy to sell coffee direct (online) for $11-12/lb (maybe even less), and I think that would be attractive to many consumers, even with a small shipping surcharge (e.g. $5 under $50). I have coffee priced higher on our website now, and our conversion rate is not amazing.

Side note: I already sell cheaper to walk-ins at the roastery; we're in an industrial neighborhood, so I figure that people who come all the way here deserve a break. They get a baker's dozen punch card - and tend to come back for years.

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