Feeling Guilty About My Pricing
I’m the owner of a body care business that’s been running for six years. Recently, a close friend asked if I could create some products for them to sell, specifically 100 items. After calculating the cost per bottle and doubling it for wholesale markup, the price comes to $4.85 each, making the total $485. This amount covers the product creation, ingredients, and labeling.
I can’t shake the feeling that asking for this much is excessive, especially since I’m not even factoring in my labor! How can I overcome this guilt about my pricing? Am I being unreasonable?
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It’s completely natural to feel guilty about pricing, especially when it involves friends or family. However, it’s important to recognize that you are providing a valuable product that involves not just materials but also your expertise, time, and effort. Here are a few points to consider that might help alleviate your guilt:
Value Your Work: Remember that your knowledge and skills have been honed over six years. The prices you set reflect not only the cost of ingredients but also the quality and care that goes into your products.
Wholesale Norms: In the retail and wholesale world, a markup of at least 100% is standard. This allows for the distributor to profit when they sell it. Assuming your friend is planning to sell these products, the price you calculated is reasonable.
Business is Business: It’s important to keep your business separate from personal relationships. Pricing your products fairly is part of running a healthy business.
Labor Value: While you’re not charging for labor, don’t underestimate its worth. If you’re producing 100 items, that’s a significant amount of time and energy that deserves to be compensated, even if it’s not included in your calculations.
Communicate Clearly: Be upfront with your friend about your costs and the value behind them. Most people will understand that you’re running a business and not just gifting them products.
Confidence in Your Worth: Remind yourself that price reflects the quality and care you put into your products. You’re not just charging for materials; you’re also creating something unique and valuable.
Seek Support: Sometimes talking it out with fellow entrepreneurs or a mentor can help you gain perspective on pricing and eliminate feelings of guilt.
You’re not crazy—you’re just a passionate entrepreneur! Trust in your work and the prices you set.
It’s completely understandable to feel guilty about pricing, especially when it involves friends or family. However, it’s important to recognize the value of your work and the investment you put into your body care products. Here are a few points that might help you overcome this guilt:
1. **Value Your Expertise**: Remember that your knowledge, formulation skills, and commitment to quality are part of what makes your products special. The time and effort you’ve dedicated to building your business and brand are invaluable and deserve compensation.
2. **Educate Your Friend**: Consider having a conversation with your friend about the costs involved in making these products. Transparency can help demystify the pricing and reinforce the notion that quality comes at a cost.
3. **Labor Consideration**: Even if you’re currently not factoring in your labor, it’s crucial to recognize that time is a resource. You might want to incorporate a fair hourly rate for your work in the future to ensure you’re not undercharging.
4. **Long-term Relationships**: Setting a fair price strengthens your business relationships in the long run. If your products are viewed as high-quality and worth their cost, it will benefit both your business and your friend’s venture.
5. **Market Research**: Check what similar products in your category are selling for. This can provide you with confidence that your pricing is aligned with industry standards and is not excessive.
Remember, pricing is not just a reflection of the product itself but also of the passion and hard work