Pricing of Products

Our pricing strategy combines elements of value-based and competition-based approaches to set reasonable price points aligned with both product costs and the positioning as a premium sustainable sleepwear brand (Raja et al., 2020). As quality and production integrity are cornerstones of our value proposition, prices must reflect the care and craftsmanship invested at every stage. At the same time, remaining cognizant of competitor pricing allows us to straddle Mainstream and premium segments based on specific offerings strategically. For core bag sets, prices will range from $875 to $1325.
In each category, tiered pricing provides incentives for the customers to justify their decision that trade-up costs more and is exclusive. The product offering ranges from everyday staples made with ethical cotton and linen blends to specialty products integrating TENCELTM Modal and rare plant dyes developed through certified partnerships with indigenous artisan groups as capsules. As preferred, we utilize value-based promotional pricing as period markdowns on previous season overstock to consciously manage inventory in peak buying cycles for sleepwear year round. Holiday special discount codes and promo codes are included with email sign-ups and sent to loyalty program VIP prior notice on new collections released and pre-order early access reserved solely for our engaged community of brand supporters. We want to see strategic sales that add value while also reciprocating the trust of more savvy consumers looking for meaningful brands.
Promotion
To appeal to our young, progressive target audience directly, where they spend most of their time online, our marketing strategy utilizes various channels that are only digital. Social media is the main channel that has been used to promote our sleepwear and brand philosophy. Instagram and Pinterest, in a visual way, tell the story of our sustainability; Facebook helps us to communicate with engaged community members. The traffic that we route to our online store is driven by paid digital ads across platforms. Blogging and YouTube videos feature ambassadors engaging the customer’s journey beyond mere products.
Place
Our products are placed in key niche eco-fashion boutiques, green lifestyle shops, and high-end wellness outlets that cater to sustainable luxury buyouts with values of holistic living. Curation partnerships with leading department stores geared towards the conscious segment, such as Nordstrom, and specialty retailers like Credo, ensure a broader reach while still meeting our high-quality standards for an immaculate consumer experience. To further the search, customers can look and try on items in these third-party locations before final checkout on our site. Generally, wholesale is directed towards the new audience more than increasing total sales, which happens online or directly through brand stores, where the immersive ethos of mindful living becomes vital at these moments when people are making choices and buying products related to self-care.
Cost of Goods Through Gross Margin
See the attached Excel sheet.
Assumptions
i) The cost per unit of goods sold is $917.50 for the Balenciaga bag, $1075.00 for the Celine bag, $875.00 for the Givenchy bag, and $1325.00 for the Saint Laurent bag.
ii) The breakdown of costs per unit includes costs for materials, labor costs, manufacturing overhead, and transportation and duties.
iii) We expect to sell 340 units across all products in the line for the year.
iv) The markup percentage used to determine selling prices is 50% above the per-unit costs, ensuring sufficient gross margin to cover operating expenses.
v) The sales for September have been assumed to balance the monthly and yearly sales of the figuratively different units of sleepwear.