Pacific Trade Invest (PTI) Europe has recently focused its attention on supporting Pacific businesses to develop strong, sustainable pricing structures for the European market. Recognising the regularity of working with Pacific businesses with promising products, PTI Europe has been supporting clients to develop competitive and sustainable pricing that include and attract distributor and retailer needs.
PTI Europe Trade Commissioner, Jodie Stewart, highlights the potential for precise pricing to pave the way to success.
“Selling into retail is a strategic game. It is common for pricing to be relegated to the sidelines or navigated as an afterthought; however, for a business to build and maintain success in the market, a tactful approach to pricing is vital. It involves much more thought than the price tag on your final product. Pricing is part of the complex retail puzzle, but businesses that prioritise it stand to gain significant long-term rewards.”
Stewart emphasises that Pacific products are often well positioned to enter the European market; however, exporters can be unaware of the mark-ups applied by distributors and retailers.
“All too often we see businesses with excellent products, and they may have also identified appropriate distributors to market them; however, without clear pricing models that factor in retailers’ expectations, their capacity for sustained success is hampered. PTI Europe has been working with Pacific businesses to assist them to establish a pricing model that accounts for appropriate margins; assessments costs of goods sold; and financial leeway for growth, expansion, and industry shifts.”
Stewart explains it is essential for all labour and material costs to be tracked and understood by business owners, as well as shelf positions in markets to be carefully considered.
“Ultimately, we want our Pacific businesses and their products to become mainstays in their target markets. To do so, we need to implement mechanisms that track costs and remain abreast of appropriate margins.”
“Understanding the bottom line and break-even points assists businesses in identifying their potential place in the market. They can look at their competitors and see where their product may fit on the shelf of price ranges.”
Pacific business owner Mary Beth Moxon of Frangipani Foods, credits PTI Europe’s support as being instrumental in them accessing the information required to make informed pricing decisions.
“It has been a learning experience to understand the types of margins we had to factor into our products so that they can stand up in price compared to other packaged nuts. Whilst galip nuts are unique, and there will be a percentage of the market who will pay premium, if we want to sell to a wider consumer base our product must sit within a price range that consumers feel comfortable with. We can be at the higher end of the bracket, but we can’t be outside the bracket. We are extremely grateful to PTI Europe for being with us on this journey, as we aim to launch our galip nut range into UK retailers this year.”
For more information or support on pricing models, reach out to the PTI Europe team here.
