Setting the Suggested Retail Price (SRP) for a product is both an art and a science. At Gourmet Food Marketplace, we take great care to ensure that the SRP reflects the product’s true value, aligns with market expectations, and allows for healthy margins for retailers. A well-thought-out SRP not only reflects the value of a product but also helps our retailers build trust with their customers. Here’s an inside look at how we develop SRPs that benefit everyone in our ecosystem:
The first step in our process involves gathering input from the brands and importers we partner with. We ensure that their proposed SRP aligns with their market strategy and leaves adequate margins for retailers. Understanding the brand’s positioning is critical—whether they see themselves as a premium specialty product or an everyday gourmet item influences the price point. For example, a premium olive oil brand with DOP certification will naturally warrant a higher SRP compared to an everyday gourmet cooking oil.
We conduct comprehensive research to analyze how products are priced across various regions in the U.S. and within different types of stores. This includes high-end retailers, gourmet shops, and independent businesses. By evaluating regional pricing trends and store-specific factors, we develop a real-time, balanced perspective on product pricing. This thorough analysis allows us to identify a midpoint that reflects fair market value while considering the unique dynamics of each segment.
To provide additional context, we look at similar products and brands. This includes analyzing attributes like size, packaging, and target audience. For example, if we’re pricing a 250g artisanal chocolate bar, we’ll compare it against other premium chocolate bars of the same size to understand the competitive landscape.
This benchmarking ensures that our SRP is neither too high to deter consumers nor too low to undervalue the product.
Margins matter—both for retailers and for the overall success of the product. A sustainable margin structure ensures profitability across the supply chain, from the brand to the retailer. We calculate margins carefully, balancing competitive pricing with the need for financial viability. This step ensures that every stakeholder benefits from the product’s success.
Finally, we evaluate any special characteristics that may justify a premium price. These could include:
These factors not only enhance the perceived value of a product but also allow us to position it effectively in the market.
By combining vendor insights, retailer research, market analysis, and a deep understanding of product differentiation, we create SRPs that are both competitive and sustainable. Additionally, we are constantly monitoring market prices and making necessary updates to ensure that the SRPs we provide remain up-to-date. Our goal is to empower retailers to thrive by fostering trust, value, and transparency in every transaction.