Entrepreneur

People that underprice can make it hard to make money in an industry. There is always someone who can do cheaper for a short while, but they never last. I have rarely heard of business the play in the premium arena not surviving

Your wife is right.

Can't you A/B test your prices? Use limited time sales to find a sustainable price?

Sooo a large specialty coffee at Starbucks is over $7 in my location. I’m mostly paying for milk and flavoring… I’m probably only getting a cup of actual coffee. I think she’s right on this one…

I have no idea why people are supporting ur wife here, star bucks is star bucks, u most likely won’t be star bucks. If ur wife charges more the day they find a decent cheaper alternative they will switch

She’s doing the right thing.. and you have the wrong mentality. If she raises too high the sales will fall, if she drops too low you’re losing on money. YOURE A BUSINESS. START THINKING LIKE A BUSINESS.. Let your wife run the finance side of things as it seems she has more knowledge than you in that aspect.

Personally, I don’t believe in overcharging if it’s rated to healthcare or basic needs, but if it’s recreational or a comfortable tool then I charge to maximize profit/revenue.

YTA for moralizing $2 pricing experiments

You can easily lower your price. It's much harder to raise your prices

These comments are ridiculous. Of course you have to sell at the lowest margin possible as a small business looking to scale up.

Greed is valuable trait for capitalism. Raise your prices until it negatively affects sales. Just stagger your increases to give your consumers time to adjust.

The market decides what it wants to pay for the product. If you can get more for your product and position it as a premium product, position it that way. If your wife is wrong then the market will correct her.

Create 2 brands with the same product. Price them differently.

What’s wrong with making more money? Are you actually getting sales at the higher price, or are people unwilling to pay and it’s a problem?

Partners can always be issues. The best way is to decide who makes the decisions on what.

So what happens when the price is raised? That gives you the answers. Do sales fall off 5 pct or 30 Pct? And since your gross profit is higher it may not matter. So forget getting frustrated. Look at the numbers.

One of the biggest mistakes entrepreneurs make is they under sell themselves.

Your wife might be right here.

I’m definitely not the smartest or best qualified to comment, but I always think about these things:

1. Market dictates prices
2. Are people still buying your product at your reasonable expectation? I do applaud your thought process of wanting to price your product fairly. Good luck, it must be great dinner conversations at your house.

Friend, you can always lower the price once you've found your high water mark. Once you go cheap it's tough to walk it back up. Wifey is spot on....you feel out your price point from the top down.

That's the first rule of doing business my dude, you charge as much as humanely possible. You are basically saying 'oh no! my wife wants to make us more money'.

Seems super reasonable to try the highest price possible for your type of product. She should be making a partner is too stingy and is being an asshole post.

If you’re new, operating in a highly competitive space, with no technically advantaged offering…you set entry level pricing LOW.

Raise prices later, when you get some traction. But, even then be mindful you don’t cross over into over charging territory

There is no right or wrong when it comes to business, just results. And in business there is only one true result, money in the pocket. Branding doesn't matter, price and USP matters

Just price whatever you want, if you sell it at a higher price point you have extra room for making packaging extra special, bring in an extra gift, big sales, and best of all more profit for less product.

It's one thing to be greedy & another to be fair. If your product is actually worth 7 dollars, why sell it for 4?

I'd say experiment as much as you can & see how far you can stretch...

Is this ecommerce? Shipping it probably costs $2-$4

I’m wishing you and your wife the best, I come with some advice but with all do respect I’m not telling you what to do but voicing out my opinion.

Price is relative to the branding / marketing and not just cost of goods. Price is also relative to supply and demand.

Trust her to do her job and help her make it happen, against all logic that may go through your eyes and mind. This is also what a supportive husband should do, you’re a team.

Here’s a similar story from my life:

My father and I started a business together. He told me he needed a product and I told him I could get in on AMZN for $25, and he said buy as many as I can and sell it for $60 in our retail store. I let him know AMZN is retail and he said yeah he needs to make a profit. So against all logic that might be going in your mind and my mind at that time, I did what he said and the result was we did this for a couple years. People kept buying. The product was de branded by me and sold in the store in a clear plastic bag that it came in, so it definitely wasn’t the branding but the quality of the product in a high in demand area. So if hers and your marketing can achieve $7 by positioning yourself in that way, go for it. Just believe you can and believe there’s someone willing to pay that price or even more, and they’re more than happy to. ✨

YTA. It's easier to charge less in the future. Listen to your wife.

I was in your position once and it didnt end well. Im nobody to you to give advice but you should consider this one for.the sake of your marrige: Define VERY clear roles in the company who responsible for what and never make decision for something that is not your task.

About pricing while many people say its always harder to increase prices than decrease I cant agree. If you position your product too high and you cant sell your product you cant go cheaper because people will release that. "Hahh look at this loser He needed to lower his price He shouldn't be that greedy in the first place"

I feel like if you immediately aim for higher than your competitor you basicly gambling.

Even Tesla sold their car super cheap for the value it has.

Huawei and Xiaomi was a super cheap phone until their brand grew up.

I would do what you do but if your wifes opinion is this strong you may need to give her a chance and if it works then yay if not then rebrand your coffee and change tactics.

In this case think as a husband and maybe as a father not as a business man.

One thing I learned working sales at an auto shop was to never use your own financial sense to dictate what a fair price is. When you do that you assume that your customers have the same financial sense that you do. But often they do not. There are times when I thought I was going to bring a quote to a customer that was too much and I would preemptively try to lower the quote by questioning the mechanics and not charging for certain work. But that is stupid. Mainly because for all I knew the customer would have been perfectly fine to pay the original quote. A lot of them were. The best way to determine what a fair price is is to raise the price until your business starts to stall. That's when you know you are charging too much. Either way another thing you need to keep in mind is that doing business is expensive and often doesn't pay well. Even if $7 is a bit outrageous to you it may be what is necessary to maintain/obtain the lifestyle your wife wants.

Perception of value is tied to the price tag, if you are selling "special " coffee but it's too cheap people will be suspicious of it.

I put my prices up 4 times since I started and I get more sales now than when it was cheaper, same product, same service.

The bottom line is that you can always put the price back down if it doesn't work but if it does then forget about fairly, you are running a business not a charity and you want to attract people who has money and wants to spend it.

Go watch some Hormozi .

Start your own with someone else

Its not about money, its about survival brotha. I think she's right, especially today in these last few years

It depends on where your product stands compared to similar products that your customers can get.

How much do you make on each sale of your product?

Your wife is about business and you sound like a charity. You have to raise prices to stay with the market. Trust in your wife if your product is good to you it’s good to the customers simple. Go get the money and believe you’re deserving of it. Change your program or you will lose your business like I did 2 years ago.

She's a miserable greedy cunt