I am considering a price increase for my coasters. They have been at the same price for over a year. Currently I am selling them for $20/set of 4. I back the tax out of that price so the actual price is $18.35 (9% tax between state and local). The coasters are tumbled travertine and I apply all the designs myself. My cost of supplies is about 1/4 of my retail price. That cost does not include my time.
When I wholesale to a local retail store, up to 3 stores now, I wholesale them for $12. I feel that is my absolute minimum wholesale price. Local stores around here usually keystone or keystone + 10%. So there are retail stores in my town who are selling my coasters for $24-25 per set. One store has been selling my coasters for well over a year & has made multiple reorders. This is the design they carry ... http://www.customcoastersbycindy.com/Classic-Monogram-1005.htm
. Of course, I have the whole alphabet available, this is just a sample from my website. The other two stores are recent additions to my wholesale accounts and have not had sufficient time to reorder yet.
I would like to increase my retail price either to $22 or $24 per set of 4. Dh seems to think that if I do a price increase I should go ahead price them at $24. How do I go about deciding how much of an increase is too much? Even at $20, a $4 increase is a 20% increase. Is 20% too much? I feel at $24 that I could comfortable leave my price alone for at least another year. At $22, I am not so sure. I would still back out my tax. Using even dollar amounts makes it easier at craft shows, no need for coinage to make change.
Please give feedback on how to decide is a fair increase.