• Markup prices for products by type
By
Lauren Ryan
As I continue my studies in sustainable product business management through my internship with Michael Mobbs at Sustainable House, helping him launch Coolseats to the market, I've learned how challenging it can be to find the perfect price for a product.
Pricing isn’t just about covering costs; it’s a balance of various factors, such as production expenses, competitor pricing, customer expectations, and how the product is positioned in the market.
Here’s my dive into these considerations to help you decide if the Coolseat price is right for you. Do let me know what you think as i welcome your comments on this blog.
What Is the Cost to Make the Product?
Understanding the cost to produce a product is the foundation of setting a fair price.
According to a 2011 survey by the Australia Institute, Australian consumers significantly underestimate retail markups. Most respondents believed furniture was marked up by only 5%, when the actual average was around 76%. Interestingly, these same consumers viewed a markup of 35% as "reasonable."
The markup on Coolseats, however, is less than half the industry average. This modest markup ensures the business covers essential expenses like manufacturing, marketing, transportation, and payroll while remaining accessible to customers.
Competitor Pricing and Market Expectations
• Competitor pricing
When compared to competitors, Coolseats stands out as the most affordable option, offering the best combination of functionality, sustainability, and durability.
For example, competing products often lack the versatility of Coolseats, which function as a compost bin, planter, and piece of furniture - all three in one. While other products may focus on just one of these aspects, Coolseats provide a unique, multipurpose solution at a competitive price point.
Framing the Product: Who Is It For?
Coolseats are designed to appeal to a broad audience, from individual households to commercial and public spaces. While they can certainly serve single families by ending their food waste and providing free fertilizer Coolseats truly shine in community and commercial settings. There, they cool the area and provide mixed functions - educational, relaxing-by-gardening, growind food. Being made in Australia (in Melbourne, Victoria) from recycled materials there is a low embodied energy in the product because it is not made and transported from overseas manufacturers.
I've seen firsthand how Coolseats foster conversation, teamwork, and education. They’ve proven effective in spaces where I’ve installed or worked on them like:
● Cafes and restaurants
● Schools
● Community gardens and parks
● Neighborhood footpaths
By promoting collaboration and sustainability, Coolseats are more than just a product—they’re a community-building tool.
Quality and Durability: Built to Last
Coolseats are built with longevity in mind. All materials are designed to withstand the elements for 20+ years:
● Colorbond steel (with galvanizing protection) is weather-resistant and made from recycled materials.
● The seats, compost baskets, and wicking cells are all made from 100% recycled plastic, ensuring a durable and eco-friendly design.
Sustainability: Sourcing and Manufacturing
Coolseats prioritize sustainability not just in materials but in sourcing and production.
● All suppliers, materials, and manufacturing are based in Australia, reducing transport emissions.
● The use of recycled materials aligns with our commitment to ethical and eco-friendly practices.
In Conclusion
After examining the cost, market comparisons, target audience, and sustainability credentials, I’m convinced that the Coolseat price is right for me.
But is it right for you? Whether you’re an individual looking to make a sustainable choice or a business hoping to inspire your community, Coolseats offer exceptional value.
Ready to invest in a product that’s built to last, good for the planet, and priced fairly? Discover more about Coolseats today!
Lauren Ryan, intern with Sustainable House