Setting your retail price isn’t just about covering costs — it’s about balancing value, profit, and perception.
Understand the Three Price Points
- Cost Price – Your total cost per unit (ingredients, packaging, labour).
- Wholesale Price – The price you sell to retailers, ideally giving them a 40% margin.
- Retail Price (RRP) – What customers pay in-store.
If your jar of chutney costs £2 to make and sells to a retailer for £3.50, they’ll likely price it at £5.95 — giving both of you fair profit.
Focus on Win-Win Pricing
Retailers need margins to stay motivated to promote your product. When pricing is balanced, everyone wins — you, the retailer, and the customer.
Keep Reviewing
Markets shift. Ingredient costs rise. Review your pricing every 6–12 months to protect your profitability.
A smart pricing strategy is one of the strongest foundations for long-term retail growth.