MSRP-Pricing Your Product to Sell to Convenience Store Distributors

When you first begin to put together a product you’d like to sell to convenience store distributors, there’s a lot you need to think about.  Logistics, design, relevance and audience are huge factors in the success of your product—both with finding and securing a distributor, and with long-lasting sales.  If you market to the wrong group of people, then your items won’t sell, but with the right target audience, and the right distributor, there’s only one last detail that can make or break your sales success story—coming up with the perfect MSRP.

MSRP stands for: Manufacturer’s suggested retail price.  This is the price that manufacturers say a store should sell their product at.  Most of the time, a store will sell it a little below this price in order to get a product moving, which is especially noticed by major convenience store chains.

Sometimes a high MSRP is a great idea because stores can then always mark the price lower, giving customers the impression that they’re getting some kind of major discount.  Many stores use this technique, which ensures that everyone makes a profit, but patrons consider it a huge deal.  Sometimes, this technique backfires, however, and people feel that the discount still isn’t enough, and won’t bother to buy the item.  Because of this fine line between what people are willing to risk and what they’re not willing to spend on your product, you need to come up with something that will not only entice a sale but also bring in a huge profit.

There may be times that convenience store distributors will have to sell your product even lower than they would like to in order to get things selling through the convenience stores—this could be the result of a great many things, such as a tough economic situation, a change in clientele or just a lack of interest in your product.  If the profits are not worth the shelf space, you might be in jeopardy of being dropped for a more profitable adventure.  Whatever price you choose must be one strong enough to not only bring in the buyers, but to survive different kinds of changes in the economy and time.

Some things that are really important for you to consider when deciding on your price are:

  • What does it cost to make your product?

Does your product contain a great deal of expensive parts?  If so, you want to make sure that your suggested price will take that into account.  Give yourself enough wiggle room to sell to a convenience store distributors because they like to make their margins when selling to a convenience store.


  • Is there a demand for your product?

Will people scramble to get their hands on your product?  Will it survive the test of time?  If your creations will always find their way into customer’s hands, time and time again, then you’ve got the makings of long term profits.  If you think your product is dated, and will only survive a little time on the shelf, you’ll want your prices to bring in the highest amount of profits in the shortest amount of time.


  • How often will your product be purchased?

If your item is something like food, then it will have to be bought every time someone is hungry or thirsty.  This is a high-frequency product, and will ensure that you’ll get a constant supply of money due to the high amount of times people will purchase your items.  If you’re trying to sell something like an article of clothing, the likelihood that customers will buy that item more than once in one roadtrip is very low.  To ensure that you don’t lose money between purchases, your price should contain a buffer that isn’t so high that people stay away from your shelf.


  • How much is this product worth?

Think honestly about how much you would be willing to pay for your item.  If you were offered whatever you’re selling, how much would you pay for it?  If your price is too high, then change it.  Thinking honestly about your current reality is the best road you can take.  People will sometimes be pressed for cash—think of a price that will still engage them enough to cause them to part with their money.

If you take all these things into consideration when deciding how much your product should cost, then you’ll be well on your way to creating the perfect means to make money.  Giving convenience store distributors enough wiggle room to lower the price without hurting everyone’s profits is the key to making sure that they continue to stock their shelves with things you’re selling, and that people coming into their stores are going to keep buying from you.  The easiest way to decide on your price is to put yourself in your patron’s shoes and be realistic—how much would you pay?  Start there, and you’ll never go wrong.