Premium Pricing in 2023

In general, taking a 5-10% price increase will not change demand for a product line like yours that is 50-200% above the category unit price average. Just think about it for a second. Even if the retailer doubles that on the way to the shelf (i.e., raises your SRP 10-20%).

Let it sink in. 

Highly motivated consumers will not notice a retail price increase caused by you raising your wholesale prices to cover COGS increases. They were already paying a large premium.

The one exception I’ve seen is for early-stage brands that have not built a ‘brand’ over time based on clear positioning and fan-base stoking. These are often $10-$30M platform brands following some trend from 10 years ago, or they are the ‘experiment’ of a well-appointed co-manufacturer/private labeler. 

Another exception is if NONE of your competitors took price increases and now are visibly cheaper than you on the shelf, like 50 cents per unit or even cheaper. That would be unfavorable if you are in later Phases of development (e.g., 3 and 4) where you have reached more price-sensitive premium consumers.

Most premium brands in Phases 1 and 2 should not be affected by these kinds of price increases, and retailers are more than happy to take them and even add some more on top (based on my client sources). 

If Whole Foods is going to take prices up without consulting you, you should get paid more too. No?