NCDA&CS food business specialist Annette Dunlap offers resources that agribusiness owners and food entrepreneurs can use to grow and manage their business. Annette is available for free one-on-one consultations and can assist business owners with financial and market planning through the agribusiness development section. She can be reached at firstname.lastname@example.org.
Consumers are cautious about how they spend their money, so price increases can be a sensitive issue to address. No matter what your specialty product is, you need to convey to consumers they are purchasing a high-quality product. When you look at pricing your product, keep these things in mind:
1) Control your cost: Look for ways to increase your price incrementally so you will have space to change your pricing if you encounter unexpected dramatic increases in input costs.
2) Bundle your products: Try packaging your products together in bundles or specials that will encourage consumers to purchase multiple products at the same time.
3) Separate your shipping costs: Make shipping costs a separate line item to your end customer so you can recapture the full cost of making your product.
Pricing continues to be a challenge for many. For additional information on pricing your food product, you may want to consult this PowerPoint presentation from North Dakota State University. Also, check out this blog post from the Michigan State Center for Innovation. In my opinion, this post neatly summarizes what you need to keep in mind as you move forward with putting your product in the marketplace.