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How to Price Products for Maximum Margin
Pricing strategy can make or break your shop. Learn the formulas top retailers use.
The Art of Pricing
Getting your pricing right is the difference between surviving and thriving. Here's how to think about it.
The Basic Formula
Your retail price should be at minimum 2x your wholesale cost (100% markup). Premium products can sustain 2.5-3x markup.Category Benchmarks
- THCA Flower: 2-2.5x markup is standard
- Disposable Vapes: 1.8-2.2x markup
- Kratom: 2.5-3x markup (higher perceived value)
- Edibles/Gummies: 2-2.5x markup
- Accessories: 3-4x markup (impulse purchases)
Volume Pricing Strategy
Offer quantity discounts to increase basket size:- Single unit: Full price
- Buy 2: 10% off
- Buy 5+: 20% off
Competitive Pricing
Know your local competition. Price-match on commodity items (common disposable vapes), but charge premium for unique products (exclusive strains, premium brands).Psychological Pricing
- Use $X.99 pricing
- Bundle slow movers with fast movers
- Position premium products at eye level