That smartphone you use on a daily basis, the car you drive yourself to work everyday, the clothes you buy online–all these products, do you ever wonder why some are priced higher or lower than the others? When a lot of products may have the same features, the same materials used or perhaps even the same manufacturer. But why the price gaps? Well, a number of important factors affect various product prices. If you are a company engaged in selling and distributing your products to other businesses chances are you will be requested to submit a product price proposal or have a need to do in order to close a deal. Read more about product price proposal in our article below and for templates, you may want to check out our free product price proposal below:
10+ Product Price Proposal Samples
1. Product Price Proposal Template
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6. Business Product Price Proposal
7. Product Price Proposal Submission Sheet
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10. Product Price Settlement Proposal
11. Product Contract Price Proposal
What Is A Product Price Proposal?
You have a great new product on hand, and now your problem is how to distribute these to various stores that are willing to display and sell your products in your behalf. Marketing your product is one thing and expressing an intent to have your product displayed and sold in their stores is another, but an important question is how much are you willing to sell your products for? Prices for individual customers may be quite different when selling products in bulk/wholesale or to retail establishments. Product prices must be adjusted to suit the quantities to be sold. In a product price proposal, you are to explain about the products you are selling and the different price scheme. Basically, it is a document that contains how much is your bid to sell these products to your potential customers, usually in large quantities.
How To Write a Product Price Proposal?
Proposals are intended to convince the reader about your offer, in this case a product price proposal is here to initially persuade your client of your proposed prices. Now, prices are different when it comes to selling to clients who buy in bulk. In your product price proposal, you must justify the cost of your products to help them understand why it is priced in such a way. Keep in mind that your pricing proposal provides justification for the prospect’s investment in terms that are useful and understandable to the client. Here are the basic steps to remember as you start writing your product price proposal.
1. Client Needs
First off, you must understand why the client would need your products. Determining this will make you understand how to set a price in your products.
2. Product and Market Value
Surely, upon development of your products you are well aware of the cost that was incurred while it was in production. The materials, cost of labor and other factors can very much affect the pricing of products. You will need to justify this in your proposal in order to help the reader understand the different cost it took to create the product. Then you need to determine how much is the estimated market value of your product. The product must also be priced in a way this can be generally accepted by the buyer or the end consumers.
3. Company Description
Include an overview of your company in your proposal in order to give the reader an idea on the history and the nature of your business. Perhaps including what other products you cater on.
4. Product Description
Since you will be selling your products, it is imperative to give a brief description about each. What are its benefits when sold in the market and what would the client gain out of selling these products.
5. Pricing Scheme
In this section, which is in fact the main purpose of such proposal you will need to indicate the different pricing scheme of each product. You can break this down with the price description such as the production cost, warranty price and additional cost. Then you may want to include a comparison for a wholesaler rate versus the published rate. And the percentage of increase if applicable. Your price scheme will definitely depend on the products that your are about to sell. Which ever is relevant to it, so must be the price scheme. You may want to refer to your free templates above to check what seems fit to your product and line of business.
Every proposal always has a brief indication of the payment terms, you may include this in your proposal to give your reader an idea of what to expect. Since this is still a proposal, once you get them interested both parties can always amend what was originally written.
7. Terms And Conditions
Its best to include early on your terms and conditions to make the reader understand the different conditions you have set upon once you come into an agreement. In this section, you may include any warranties, legalities, data privacy and other things that is relevant to your product price proposal.
Why Are Products Sold in Different Prices?
Products may be identical but prices of these differ because of the different cost structure. A lot of factors may affect the prices of each product such as the demand, the location of which these are sold, operating costs, overhead costs, as well as fulfillment and delivery.
Why Are Some Products Sold on a Discount?
Aside of trying to get rid of the product before it expires, discounts is a sales strategy that can attract new customers, enhance profit, boost the product’s reputations and other things.
Why Are Brand Products More Costly?
Brand products are more expensive because of the quality these are made of, and because it costs money to market those products to the public.
Build up a good and impressive product price proposal in order to help distribute and sell your products to various retailers and business alike. It may be difficult to convince your client to invest with your product at first, but persuade them otherwise starting with a well-written product price proposal.
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