Episode 677: "I’ve Been in Business Several Years, but Need Help Gaining Control on My Pricing and Margins." | Coaching Session
Release Date: March 27, 2025
In this insightful episode of The Product Boss Podcast, host Jacqueline Snyder delves into a real-life coaching session with Nicole, the owner of Maison Ber, a well-established linen products business. Nicole has been in the industry for a decade, offering a range of products including pillows, table runners, bench cushions, and bespoke Roman blinds and curtains. Despite her success, Nicole faces challenges in optimizing her pricing strategies and improving her profit margins, especially as she considers expanding into wholesale.
1. Introduction to Nicole and Her Business
Jacqueline Snyder begins by introducing Nicole’s business, Maison Ber, highlighting its beautiful and magical line of linen products sold primarily through her website, a small Etsy shop, and a few wholesale stockists.
“[...] I make and sell French linen cushions, linen and grain sack cushions, fabric, table linen and I have bespoke cushions and bespoke Roman blinds and curtains.”
— Nicole (04:21)
Nicole collaborates with four to five seamstresses, handling everything except the sewing. Her hallmark product, the striped grain sack cushion with a French Provencal aesthetic, has been a consistent bestseller for nearly ten years.
2. Current Challenges: Pricing and Margins
Nicole explains that she recently increased her prices by approximately 25% to combat burnout and streamline her product offerings. This price hike, implemented six to eight months ago, led to a noticeable drop in sales volume, though overall revenue remained stable due to a decent Q4 performance.
“I raised prices just in May this year [...] I have seen a drop in sales. But in terms of revenue, if I have a decent Q4, it'll be the same.”
— Nicole (05:13)
She expresses concern over the decline in the number of sales rather than website traffic, indicating potential issues with how customers perceive her pricing and product value.
3. Analyzing Product Offerings and Sales Channels
Nicole discusses her sales distribution between fabric (sold by the meter) and finished goods like cushions. She noted a significant number of fabric sales by the meter, including half and quarter meters, which might be contributing to operational inefficiencies.
“The fabric's 36 pounds per meter. But like you say, if they just order half a meter, then that's just not worth me.”
— Nicole (10:26)
Jacqueline suggests eliminating the half and quarter-meter options to streamline operations and encourage larger purchases, thereby increasing the average order value and reducing labor associated with small orders.
4. Strategies for Improving Pricing and Margins
Jacqueline advises Nicole to establish a minimum purchase quantity for fabric, potentially setting it at three meters instead of one. This adjustment aims to reduce the time and effort spent on processing very small orders, which are not cost-effective.
“I think you should just get rid of the half and the quarter. Just have if there's swatches and they, they pay for swatches if that's the case.”
— Jacqueline Snyder (08:42)
Additionally, Jacqueline recommends introducing a swatch book—a bundled offering of various fabric swatches at a fixed price—to make swatch ordering more efficient and profitable.
“What if you just did swatch books? So what if it was all the swatches for an amount, so £10 or something.”
— Jacqueline Snyder (12:47)
5. Expanding into Wholesale: Opportunities and Considerations
Nicole is exploring expanding her wholesale operations to reach broader audiences through other retailers. Currently, wholesale accounts for about 20% of her sales, primarily sourced through Instagram without proactive outreach.
“So at the moment, it's where they've come to me from social, so on Instagram [...] part of me was wondering, you know, I've been selling that hero fabric, that striped grain Sack, for nearly 10 years and it's always been my best seller.”
— Nicole (14:26)
Jacqueline emphasizes the importance of aligning wholesale pricing with retail prices to prevent undercutting and suggests focusing on select product lines that offer better profit margins.
“Do you want to brand them? [...] it's a benefit to them for you to be well known and for people to ask for your product.”
— Jacqueline Snyder (15:47)
She advises Nicole to refine her wholesale catalog, possibly limiting it to high-margin items like table linens and specific pillow sizes, to enhance profitability and streamline production.
“If you have the margins for that type of markup, otherwise, what could you offer wholesale that isn't everything, but it could be a smaller catalog of product that you actually could get a better return.”
— Jacqueline Snyder (17:35)
6. Enhancing Social Media Strategy
Nicole acknowledges a decline in Instagram engagement, particularly after shifting her content to include more personal and self-help themes related to her 50s. Previously, her Instagram-focused heavily on product-centric content, including frequent tagging of customers and giveaways, which drove high engagement.
“With regards to tagging, I don't know, I just usually tagged all the time and I don't know, I've never worked that one out.”
— Nicole (28:25)
Jacqueline suggests reverting to more product-focused content while integrating personal elements to maintain authenticity. She also recommends leveraging Pinterest as a search-oriented platform to capture potential customers actively seeking home décor solutions.
“One thing could be starting to get into Pinterest for you, specifically for a search tool to show up as a solution to people's problems or as inspiration.”
— Jacqueline Snyder (30:44)
Additionally, Jacqueline encourages Nicole to reinstate successful strategies like giveaways and interactive content to boost engagement and reconnect with her audience.
“I did used to do giveaways, and they were really. They did used to get a lot of comments, so they did work. So, yeah, I do need to get back into those.”
— Nicole (33:23)
7. Final Recommendations and Action Plan
Jacqueline underscores the importance of continuous evaluation by asking critical questions such as, "Is something broken or did I change something?" She advises Nicole to regularly analyze her business metrics and remain adaptable to market changes.
“Look, we all know that time is precious. It's a precious commodity for any small business owner.”
— Jacqueline Snyder (09:07)
To implement sustainable growth, Jacqueline recommends that Nicole:
- Streamline Product Offerings: Eliminate low-volume fabric options and introduce swatch books.
- Optimize Wholesale Strategy: Focus on branded products with better margins and create targeted wholesale catalogs.
- Revamp Social Media: Balance personal storytelling with product-centric content and explore new platforms like Pinterest.
- Enhance Operational Efficiency: Increase production units to lower per-unit costs and improve profitability.
8. Key Takeaways
- Pricing Strategy: Adjusting pricing thoughtfully can stabilize revenue even if sales volume fluctuates.
- Wholesale Expansion: Strategic wholesale efforts, when aligned with proper margins, can significantly boost business.
- Social Media Optimization: Maintaining a balance between personal and product content is crucial for engagement and sales.
- Operational Efficiency: Streamlining product offerings and production processes can lead to better margins and increased profitability.
- Continuous Evaluation: Regularly assessing business changes and their impacts ensures sustained growth and adaptability.
Conclusion
Nicole’s journey with Maison Ber serves as a valuable case study for product-based entrepreneurs navigating pricing strategies, margin optimization, and wholesale expansion. With Jacqueline Snyder’s expert guidance, Nicole is poised to refine her business model, enhance her social media presence, and ultimately achieve greater success.
For listeners seeking personalized advice, Jacqueline invites them to consider one-on-one coaching sessions, providing a pathway to elevate their own product businesses.
Connect with Nicole:
- Website: maisonbruckant.co.uk
- Instagram: @Maisonbruck Hunt
- Contact: DM on Instagram or email via the website.
Join Jacqueline’s Coaching: Interested in gaining insights tailored to your business? Visit the show notes for links to sign up for one-on-one coaching sessions with Jacqueline Snyder.
Thank you for tuning into The Product Boss Podcast. Subscribe to stay updated on episodes designed to help you create your dream life through effective product entrepreneurship.