How should we position our retail price to account for price barriers, competitor pricing, and margin vs. volume trade-offs?

Price positioning requires balancing consumer perception of value at retail price points against your cost structure and margin targets.

**Key considerations:**

- **Identify price barriers in your category.** Premium gin, for example, has a perceived ceiling around £30; positioning at £29.99 vs. £30.99 can significantly impact consumer acceptance and volume, even if the cost difference is small. - **Match quality to price point first.** The biggest challenge at launch is ensuring your product quality genuinely justifies the initial retail price in terms of perceived value for money, rather than setting price purely on production costs. - **Be prepared to accept lower margin to stay under a ceiling.** If rising COGs would push you above a key price barrier (e.g., £30 for premium gin), members recommend a commercial decision to reduce margin and stay sub-barrier rather than jump into a lower-volume, higher-price segment. - **Don't live in fear of breaching barriers as costs rise.** Eventually, price barriers break down as most competitors face the same cost pressures. Balance and consideration matter, but don't be afraid to increase price when needed. - **Remember volume vs. premium trade-off.** Higher volumes exist at lower price points (e.g., premium gin vs. super-premium gin), so a price increase may reduce unit sales but improve margin structure.

**Caveats:** Price positioning is iterative and tied to retail strategy. Even if you're not selling direct to retailers initially, members recommend thinking about retail shelf price from the outset.